The Minister of Finance of Quebec announced on June 12, 2009,
that the refundable tax credit program for film productions would
be improved to include all film production costs. Under the current
rules, a "qualified Quebec corporation" (i.e., a
corporation that has an establishment in Quebec and carries on a
film production business in Quebec) is generally entitled to a
refundable tax credit equal to 25% of its labour expenditures. The
Minister of Finance proposes to expand the 25% refundable tax
credit to all production costs incurred in Quebec, whether through
an acquisition or rental, and including real estate, tangible
properties and software, to the extent such assets are used in
Quebec for any stages of the film production, from screenplay
writing to post-production, of a "qualified production".
A film is a "qualified production" if the producer is
domiciled in Quebec and the production satisfies certain prescribed
requirements in connection with its creative aspects. It is based
on a point system - to qualify, a production must obtain a minimum
of 6 points with respect to its key creative personnel domiciled in
Quebec, for example the screenwriter, the director, the actors,
etc.
The improved regime is described in more detail in the Information
Bulletin 2009-3 "Improvement to the Refundable Tax Credit for
Film Production Services", dated June 12, 2009. For a copy of
Information Bulletin 2009-3, click here.
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