The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit. It is available on eligible expenses of domestic or foreign film and television production corporations.
Corporations cannot claim the OPSTC if the Ontario Film and Television 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 25% of eligible expenses.
Eligible expenses incurred after June 30, 2009 include:
- eligible wages,
- eligible service contracts and
- eligible tangible property expenses.
Eligibility
To qualify, an eligible corporation:
- is a Canadian or foreign-owned corporation
- is not exempt from tax
- is not controlled by another person or corporation that is exempt from tax
- carries on business at a permanent establishment in Ontario
- owns the production's copyright, or contracts directly with the copyright owner 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 T2SCH558, and file it with their T2 return.
