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Tax Incentives

Ontario offers the following tax incentives for eligible film and television productions. The tax credits are fully refundable labour based credits, available to Canadian and foreign owned production companies. Ontario tax credits are administered by the OMDC and the Ministry of Finance for Ontario.

NEW RELEASE - FEBRUARY 20, 2009  

ONTARIO SUPPORTS FILM AND TELEVISION INDUSTRY  
McGuinty Government Proposes to Make Ontario’s Enhanced Film Tax Credits Permanent  
 

ONTARIO PRODUCTION SERVICES TAX CREDIT (OPSTC)
The OPSTC is available to Canadian or foreign-controlled production companies on Ontario labour expenditures for film or television productions:

  • The credit rate is 25% of Ontario labour expenditures.
  • Ontario labour expenditures are salaries, wages and other remuneration paid to Ontario residents.
  • Production companies must be taxable corporations with a place of business in Ontario.
  • Production companies must own the copyright in the production or contract directly with the copyright owner.
  • Productions are eligible if they are in an eligible genre and have production expenditures in excess of certain minimum levels.

A tax credit of 16% of Canadian labour expenditures is also available from the federal government, resulting in a combined maximum credit of up to 37% of labour expenditures for productions which qualify for both tax credits. For information on the federal credit contact CAVCO at 1-888-433-2200 or www.pch.gc.ca/Cavco.


ONTARIO FILM AND TELEVISION TAX CREDIT (OFTTC)
The OFTTC is available to production companies on Ontario labour expenditures for certified Canadian film or television productions:

  • The credit rate is 35% of Ontario labour expenditures.
  • A regional bonus of 10% applies for regional productions.
  • Production companies must be taxable Canadian corporations, which are Canadian-controlled and have a place of business in Ontario.
  • Productions must be in an eligible genre, have an agreement to be shown in Ontario within two years of completion, have an Ontario based producer and meet a minimum Ontario expenditure threshold.
  • Productions with non-Canadian producers must have a courtesy credit exemption from CAVCO for the non-Canadian producers. 
  • Productions must have 6 Canadian content points.
  • Interprovincial and international treaty co-productions are eligible; in the case of co-productions the credit is claimed by the Ontario co-producer and is calculated on the Ontario portion of the co-production.
  • Ontario labour expenditures are salaries, wages and other remuneration paid to Ontario residents.

A credit of 25% of qualified labour expenditures is also available from the federal government.


ONTARIO COMPUTER ANIMATION AND SPECIAL EFFECTS (OCASE) TAX CREDIT
The OCASE Tax Credit is available to Canadian or foreign controlled corporations on Ontario labour expenditures for digital animation or digital visual effects for film or television productions:

  • The credit is 20% of Ontario labour expenditures for eligible activities.
  • Corporations must be taxable and perform eligible activities at their place of business in Ontario.
  • Eligible activities must be for the creation in Ontario of digital animation or digital visual effects for use in eligible productions.
  • Productions must be produced for commercial exploitation and be in an eligible genre.
  • Ontario labour expenditures may include all salaries and wages paid to employees and 50% of amounts paid to freelancers for activities performed in Ontario; eligible expenditures prior to May 11, 2005 may not exceed 48% of the cost of the eligible activities.
  • An OCASE tax credit may be claimed in addition to an OPSTC or an OFTTC. Labour expenditures eligible for OCASE may also be included in the OPSTC or OFTTC.