The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit for small businesses across the Canadian province of Ontario. OPSTC applies to eligible expenses of domestic or foreign film and television production corporations. Please note that corporations cannot claim this tax credit 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.
Production Services Tax Credit Benefits
Eligible applications can gain a credit of 25% of eligible expenses. Eligible expenses under this tax credit includes:
- Eligible wages,
- Eligible service contracts and
- Eligible tangible property expenses.
- 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
Canadian Government Funding Application
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. If you would like additional Canadian government funding advice, be sure to contact one of our Canadian Government Funding Experts, or subscribe to Mentor Works’ Weekly Small Business Funding E-Newsletter. Additionally, you can receive current updates on government funding mechanisms by following us on LinkedIn or Twitter.