The Ontario Film and Television Tax Credit (OFTTC) is a refundable tax credit. It is available to corporations for eligible Ontario labour expenses on Ontario film and television productions.
Corporations cannot claim the OFTTC if the Ontario Production Services Tax Credit was claimed for the same production.
The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.
The Benefit
The credit is equal to:
- 35% of Ontario labour expenses and
- 40% of the first $240,000 of Ontario labour expenses for first time producers.
A further credit of 10% of Ontario labour expenses is available for filming outside the Greater Toronto Area.
Eligibility
To qualify, an eligible corporation:
- is a Canadian-Controlled Corporation
- has a permanent establishment in Ontario
- is not exempt from tax
- is not controlled by another person or corporation that is exempt from tax
- carries on a Canadian film or video production business and
- is not a prescribed labour-sponsored venture capital corporation.
How to Apply
Corporations must obtain a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC), and attach it to their T2 Corporation Income Tax Return (T2 return).
Corporations must claim the tax credit on Schedule T2SCH556, and file it with their T2 return.
