Ontario Production Services Tax Credit
As announced in the 2007 Ontario Economic Outlook and Fiscal Review, the government proposes to increase the Ontario Production Services Tax Credit rate from 18 to 25 per cent for labour expenditures incurred after December 31, 2007 and before January 1, 2010.
The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit for qualified Ontario labour expenditures incurred by a domestic or foreign-based film and television production corporation with respect to an eligible production that is not claimed for purposes of the Ontario Film and Television Tax Credit (OFTTC).
The Benefit
The OPSTC is an 18% refundable tax credit on qualifying Ontario labour expenditures incurred after December 31, 2004 and before April 1, 2007. The rate is 11% for expenditures incurred prior to January 1, 2005 and after March 31, 2007.
The 3% regional bonus for filming outside the Greater Toronto Area is available for Ontario labour expenditures incurred after May 2, 2000 and before January 1, 2005.
How to Apply
A corporation is required to submit with its Ontario corporations tax return a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC).
Enter the total amount of the credit on Line 199 of the tax return.
Additional Information
The Ministry of Revenue and the OMDC jointly administer this tax credit. The OMDC website has information which may assist you.
