The Ontario Book Publishing Tax Credit (OBPTC) is a refundable tax credit. It is available to Ontario book publishing companies that publish and promote literary works by Canadian authors.
The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.
The Benefit
The credit is 30% of qualifying pre-press, printing and marketing expenses. The maximum tax credit is $30,000 per literary work.
For qualifying expenses made after March 26, 2009, the credit is available for:
- any number of books by a Canadian author in an eligible category of writing, and
- direct expenses reasonably related to publishing an electronic version of an eligible book.
Eligibility
To qualify, a corporation:
- is a Canadian-controlled corporation
- is not exempt from income tax and
- carries on a book publishing business primarily through an Ontario permanent establishment
How to Apply
Corporations must obtain a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC) for each eligible literary work.
Corporations must attach the Certificate and a completed Schedule T2SCH564 to their T2 Corporation Income Tax Return.
