Producing in Canada

A guide to Canadian film, television and

interactive digital media incentive programs

Grow | Protect | Operate | Finance

Producing in Canada • 1
Foreword

Producing in the Age of the Online Streaming Act

On April 27, 2023, the Broadcasting Act was amended to clarify that it applies to online streaming and
on-demand services, and to add those services as a class of “broadcasting undertaking” subject to
regulation by the Canadian Radio-television and Telecommunications Commission (CRTC). In its news
release on the bill’s long-awaited passage, the Department of Canadian Heritage stated that “the Online
Streaming Act requires streaming services to contribute to the creation, production and distribution of
Canadian stories in a way that is flexible and fair [and…] aims to level the playing field” with respect to
investment, industry jobs and sharing Canadian culture.

CRTC processes
The CRTC will implement the new regime primarily by making regulations and orders. For example, the
CRTC will make regulations to define “Canadian content”, and it may make regulations to set blanket
obligations for certain classes or types of broadcasters and streaming services, such as programming
expenditures and program standards. It may also order certain broadcasters or streaming service – or
classes or types of them – to contribute to production funds, and follow certain rules for exhibiting and
promoting Canadian content.

In May 2023, the CRTC published its Regulatory Plan to modernize Canada’s broadcasting system, and
launched the first of an extended series of public consultations on how to implement the new regime.

Key issues
Canadian content

An updated definition of “Canadian content” will be one of the key elements of the regulatory framework
under the new regime. Among other things, the Broadcasting Act will require the CRTC to consider
copyright ownership as a factor to determine whether content is “Canadian”, which could have
implications for deals to produce and exploit content made with Canadian partners. The CRTC will
also consider whether key creative positions in program production are held by Canadians, whether a
program “furthers Canadian artistic and cultural expression”, and collaboration by streaming services
and broadcasters (as the case may be) with Canadian producers.

This publication has been prepared to provide a general overview of some of the incentives available, and
considerations related thereto, for film and television production in Canada. The material is not meant to be an
exhaustive analysis of the law, and should not be relied on with respect to any particular transaction or other
proceeding. We highly recommend that all persons seek professional legal advice from any of the Canadian offices of
Dentons LLP before undertaking a transaction.

2 • Producing in Canada
New revenues into the Canadian system

In appearances before Parliamentary Committees, officials from the Department of Canadian Heritage
and from the CRTC responded to questions about new financial contributions from streaming services
to the Canadian broadcasting system. The figure of CA$900 million was repeatedly raised, and while
this was originally referenced as new revenues, officials later clarified that this would not necessarily
be a new injection of funds; and that the question of who will contribute, and how much, would be the
subject of an evidence-based future CRTC public proceeding:

“This is not taking $900 million away from those streaming services and saying the government is now
going to use that for alternate purposes. In the modelling, the vast majority of that are expenditure
requirements where those companies will continue to have decision-making power over how
that is used with the understanding that those investments go into Canadian programs because
that’s what this bill is about – making sure that those streaming services are investing in television, film
and music that involves Canadian creators and tells Canadian stories.” (Thomas Owen Ripley, Associate
Assistant Deputy Minister, Canadian Heritage)

Timing

The CRTC will continue its public consultations in 2023 and 2024, which will include a major
public hearing in November 2023 regarding contributions by traditional broadcasters and streaming
services to support Canadian and Indigenous content. The CRTC will be making new regulations and
imposing some initial, transitional obligations in 2023, and expects to begin implementing the final
requirements of the new regime in late 2024.

Producing in Canada • 3
4 • Producing in Canada
Contents

6 ... Introduction
8 ... Summary of provincial and federal government tax credits
15 ... Federal government incentive programs
47 ... Official co-productions
51 ... Private incentives
52 ... Alberta government incentive programs
59 ... British Columbia government incentive programs
65 ... Manitoba government incentive programs
69 ... New Brunswick government incentive programs
71 ... Newfoundland and Labrador government incentive programs
75 ... Northwest Territories government incentive programs
76 ... Nova Scotia government incentive programs
80 ... Nunavut government incentive programs
84 ... Ontario government incentive programs
89 ... Prince Edward Island government incentive programs
92 ... Québec government incentive programs
96 ... Saskatchewan government incentive programs
104 ... Yukon government incentive programs
107 ... Union and guild-related issues
109 ... Tax-related issues
110 ... Contacts
111 ... About Dentons
112 ... Our media and film industry experience
Producing in Canada • 5
Introduction

Canada is recognized as a major player in film, At Dentons, we know the advantages associated
television and interactive digital media production. with producing in Canada, such as the various
The growth of Canada’s multibillion-dollar production tax incentives provided by both federal and
industry is attributable to our high-standard facilities, provincial governments. Producing in Canada—our
competent workforce, physical and cultural proximity comprehensive guide to Canadian film, television
to the United States, as well as many favourable and interactive digital media incentive programs—
economic factors. These include lower location and provides an overview of some of the available
production costs than in the US and Europe, a good incentives and the criteria that must be satisfied to
exchange rate, and advantageous government tax qualify for them. Although each financing program is
incentives and funding policies. described separately for ease of reference, any given
production may qualify for two or more programs.

The information provided in this printed edition of

Producing in Canada is current as of September 2023.
The online version of our guide—available at dentons.
com—will be updated on a regular basis.

Further, Dentons understands that deciding how

to structure the financing and production of
an audio-visual production in Canada can
be complicated. That is why Dentons is
pleased to provide a comparison chart
that aims to simplify the process by
identifying the primary structuring
considerations, and how they differ
from each other: Canadian content,
production services, co-ventures and
international treaty co-productions.
The comparison chart can be
found here.

To find out more about Canadian

film, television and interactive
digital media incentive programs,
or structuring productions, please
contact one of the lawyers listed
at the end of this document.

6 • Producing in Canada
 CA$11.69 Billion
Total volume of film and
television production in
Canada in 2021/22.
- Source: Profile 2022: Economic
report on the screen-based media
production industry in Canada,
Canadian Media Producers
Association (CMPA)

CA$7.58 billlion
Value of foreign
investment in
production in Canada
in 2021/22.
- Source: Profile 2022, CMPA

Producing in Canada • 7
Summary of provincial
and federal government
tax credits
A more detailed description of the federal tax credits can be found beginning on page 15, with an outline of the
provincial tax credits beginning on page 52.

Jurisdiction Tax credit

FEDERAL1

25% of QLE CAP Canadian Film or Video Production Tax Credit

• 25 percent of eligible labour expenditures2 capped at 60 percent of production budget
(approximately 15 percent of budget).

16% of QLE NO CAP Film and Video Production Services Tax Credit
• 16 percent of qualifying Canadian labour expenditures.

ALBERTA

22% Or 30% of Eligible Film and Television Tax Credit

costs • 22 percent or 30 percent of qualifying Alberta production costs depending upon certain
eligibility criteria.

BRITISH COLUMBIA

35% of QLE CAP Film Incentive British Columbia

• Basic: 35 percent of eligible British Columbia labour expenditures up to a maximum of
60 percent of total eligible production costs.
• Regional: 12.5 percent of eligible British Columbia labour expenditures pro-rated by the
number of days of principal photography outside the Vancouver area, divided by the total
number of days of principal photography in British Columbia.
• Distant Location: An additional six percent of eligible British Columbia labour expenditures
pro-rated by the number of days of principal photography done in a distant location in
British Columbia within a prescribed area, divided by the total number of days of principal
photography in British Columbia. For a television series, this is further prorated by the
number of qualifying episodes to the total number of episodes. For animated productions,
this tax credit is based on BC labour expenditures in respect of services rendered in BC in a
distant location.
• Training: The lesser of 30 percent of trainee salaries or three percent of eligible British
Columbia labour expenditures.
• Scriptwriting: 35 percent of screenwriting labour expenditures.
• Combined benefit of above four tax incentives is the amount of eligible labour capped at
60 percent of total production costs.

1 Please note that the amount of the actual federal tax credit will reduce the base number for the calculation of many provincial tax credits. Please
consult the applicable legislation to confirm.
2 “Labour expenditures” for the federal tax credit are defined as the labour expenditures incurred from the final script stage to post-production
directly attributable to the production, reasonable in the circumstances and included in the cost to the corporation. For the provincial tax credits,
a similar definition is used, but such labour expenditures must be paid to residents of that province. Eligible expenditures can be incurred as early
as two years before principal photography begins so that in-house development labour costs of a script are eligible.
Jurisdiction Tax credit

• Digital Animation or Visual Effects (DAVE) Incentive: 16 percent of eligible British Columbia
labour costs directly attributable to eligible digital animation or visual effects activities or
eligible post-production activities.
• For a television series, this is further prorated by the number of qualifying episodes to the
total number of episodes. For animated productions, this tax credit is based on BC labour
expenditures in respect of services rendered in BC in a distant location.

28% of QLE NO CAP Provincial Production Services Tax Credit (PSTC)

• Basic: 28 percent of accredited qualified British Columbia labour expenditures.

• Regional: Six percent of accredited qualified British Columbia labour costs. For live
action productions, accredited qualified BC labour costs are prorated by the number
of days of principal photography in BC outside of the designated Vancouver area to
the total days of principal photography in BC. The production must have at least 5
principal photography days outside the designated Vancouver area and over 50% of
the BC principal photography days must be outside the designated Vancouver area. For
a series, this tax credit is assessed on a per episode basis. For animated productions,
this tax credit is based on BC labour expenditure in respect of services rendered in BC
outside the designated Vancouver area.

• Distant location regional: Six percent of accredited qualified British Columbia labour
costs. For live action productions, accredited qualified BC labour costs are prorated by
the number of days of principal photography in BC within a prescribed area to the total
days of principal photography in BC. To be eligible for this tax credit, the production
must be eligible for the Regional Tax Credit and have at least 1 principal photography
day in a distant location. For a series, this tax credit is assessed on a per episode basis.
For animated productions, this tax credit is based on BC labour expenditure in respect
of services rendered in BC in a distant location.

• DAVE incentive: 16 percent of accredited qualified British Columbia labour costs

directly attributable to eligible digital animation or visual effects activity or eligible
post-production activities.

17.5% of QLE NO CAP Interactive Digital Media Tax Credit

• 17.5 percent of qualified British Columbia labour expenditure for video game development.

MANITOBA

up to Cost-of-Salaries Tax Credit

65% of QLE NO CAP • Base rate of 45 percent of qualified Manitoba labour expenditures, which may be combined
Or with the following:

38% *All spend • Frequent filming credit: 10 percent frequent filming bonus.
NO CAP • Rural and Northern Bonus: Five percent bonus for location filming outside of Winnipeg.

• Producer credit: Five percent Manitoba Producer bonus.

Cost-of-Production Tax Credit

•  Base rate of 30 percent of eligible Manitoban labour and other non-labour expenditures.

•  Eight percent bonus for production which use an eligible Manitoban production company.

40% of QLE Interactive Digital Media Tax Credit

• 40 percent of Manitoba qualified labour expenditures, and some marketing and distribution
expenses

Producing in Canada • 9
 Jurisdiction Tax credit

NEW BRUNSWICK

50% or 40% of New Brunswick Film, Television and New Media Industry Support Program [Note that
development budget CAP this is a grant, not a tax credit]
• Development Incentive: Dramatic feature films, made-for-tv movies, dramatic tv series,
40% of eligible salaries and mini-series are eligible for up to 50% of the approved development budget, up to a
CAP maximum of CA$120,000 per project. All other genres of projects are eligible for up to 40%
of the approved development budget to a maximum of CA$50,000. A maximum of 20% of
or
the development costs for producer’s fees and corporate overhead is allowed.
25% or 30% • Production Incentive:

• Labour-Based: maximum of 40% of eligible salaries paid to New Brunswick residents

which cannot exceed 50% of the eligible costs of production
• All-Spend-Based: maximum of 25% of all New Brunswick expenditures for variety and
service productions, or to a maximum of 30% of all New Brunswick expenditures for
New Brunswick-based productions or co-productions

NEWFOUNDLAND AND LABRADOR

40% of QLE CAP Film and Video Industry Tax Credit

• Lesser of 40 percent of eligible labour expenditures or 25 percent of the total eligible
production budget.

40% of QLE CAP Labour Based Tax Credit

• 40% rebate on eligible resident labour expenditures to a maximum of 25% of total eligible
production budget, with a single corporation credit limit of CA$5 million

40% of QLE CAP All Spend Film and Video Production Tax Credit

• 40% tax credit which applies to total qualified production costs with a maximum tax credit
of CA$10 million annually per project

40% plus 65% of QLE Newfoundland and Labrador Interactive Digital Media Tax Credit
CAP • 40% tax credit on qualifying expenditures, which consist of eligible salaries plus 65% of
eligible remuneration paid, with a credit value limited to CA$40,000 per employee per year
and CA$2 million per company for all taxation years ending in a calendar year

CA$15,000 and Development Program

CA$20,000 CAP • Phase One - Conception and Development of First Draft: CA$15,000 is advanced, with a
maximum of 33% of the budget
• Phase Two - Shooting Script and Production Development: CA$20,000 is advanced, with a
maximum of 33% of the budget

20% CAP Equity Investment Program

• up to 20%, which is recoupable from earned revenue from production, subject to the
following maximums:
• dramatic series - maximum CA$250,00
• theatrical feature film, television feature length movie (MOW) - CA$250,000
• documentary (single or series), children’s, other - CA$150,000
Sponsorship Program
50% CAP
• Travel Sponsorships: 50% reimbursement, up to a maximum of CA$2,000
up to CA$2,000
• Professional Learning Sponsorships: up to CA$2,000
• Industry Partner Sponsorship

10 • Producing in Canada
Jurisdiction Tax credit

NORTHWEST TERRITORIES

N/A - Rebate Program Film Rebate Program [Note: Not a tax credit]
(not a tax credit) • Labour/Training rebate: 25 percent rebate for eligible NWT labour. An additional 15 percent
rebate for recognized film industry positions or for NWT resident candidates receiving on-
set training.

• Expenditure rebate: 25 percent rebate for all goods and services that qualify as NWT spend
purchased and consumed in the NWT. An additional 15 percent rebate for goods and
services for productions shooting outside of Yellowknife city limits.

• Travel rebate: 10 percent rebate for travel to and from the NWT from anywhere in the world.
35 percent rebate for travel within the NWT (excluding aerial photography).

NOVA SCOTIA

25%-32% of QLE CAP Film and Television Production Incentive Fund [Note: Not a tax credit]
• Stream I – Indigenous/co-production: 26 percent of the eligible Nova Scotia (NS) expenses
for companies with 50-100 percent NS ownership and control.

• Stream II – Foreign/service production: 25 percent of the eligible NS expenses for

companies with 50 percent or less NS ownership and control.

• Additional percentages/bonuses are available for regional shoots, longer shoots and
productions that meet NS content incentive criteria.

50% or 25% + 65% or Digital Animation Tax Credit

17.5% of QLE • 50% of the eligible Nova Scotia labour expenditure less the value of any assistance received;
or,

• 25% of eligible Nova Scotia labour expenditure plus eligible overhead expenditure
(calculated as 65% of the eligible Nova Scotia labour expenditure) plus 65% of eligible
remuneration less twice the value of any assistance

• an additional tax credit of 17.5% is available on eligible Nova Scotian animation labour
expenditures (i.e., labour directly related to animation specific activities)
lesser of 50% or 25% Digital Media Tax Credit
of QLE • qualifying companies can claim the lesser of: 50% of qualifying Nova Scotia expenditures or
25% of total expenditures made in Nova Scotia

• 10% geographic area bonus available for products developed outside the Halifax Regional
Municipality

• all animation labour will be eligible for an animation bonus of 17.5% on animation-specific
activities, and there is a maximum on salary levels eligible for consideration within the credit

NUNAVUT

N/A - Rebate Program Nunavut Labour Rebate [Note: Not a tax credit]
(not a tax credit) • 27 percent (Spending Stream 1) or 17 percent (Spending Stream II) of the eligible Nunavut
costs.

• Rebate ≠ Tax program.

• Under the Spending Stream I, for eligible non-profit production companies with a head
office in Nunavut, the applicable spend rebate will be 17% of the total eligible costs of
production goods and services purchased and consumed in Nunavut. Funding will be
capped at CA$75,000 for the first six months of the fiscal year after which time the cap will
be removed for the remainder of the fiscal year.

Producing in Canada • 11
 Jurisdiction Tax credit

ONTARIO

35% of QLE NO CAP Film and Television Tax Credit

• Basic: 35 percent of eligible labour expenditures.
• First-time producers: 40 percent on the first CA$240,000 of eligible labour expenditures.
• Regional bonus: An additional 10 percent of eligible labour expenditures for a total of
45 percent of labour expenditures (minimum of five location days in Ontario, 85 percent
of which must be outside of the Greater Toronto Area).

21.5% “All spend” Production Services Tax Credit

NO CAP • Basic: 21.5 percent of all qualifying production expenditures in Ontario (includes qualified
labour costs and additional eligible expenses).

18% of QLE NO CAP Computer Animation and Special Effects Tax Credit
• 18 percent of eligible labour expenditures related to computer animation or visual effects.

40% of QLE NO CAP Interactive Digital Media Tax Credit

• 40 percent of eligible labour expenditures related to interactive digital media products for
qualifying corporations which are not providing a fee-for-service arrangement.
• 35 percent of eligible labour expenditures related to interactive digital media products for
corporations that are developing products under a fee-for-service arrangement.
• 35 percent credit on eligible labour expenditures is available to qualifying digital game
corporations and specialized digital game corporations.

PRINCE EDWARD ISLAND

N/A - Rebate Program Prince Edward Island Film Production Fund

(not a tax credit) • 32% of eligible PEI expenditures for work completed in PEI
• the following bonuses are available:
• PEI Production Bonus: 1% point for productions by PEI producers or co-productions
where the PEI producer has at least 25% control;
• Series Production Bonus: 2% points for series productions

QUÉBEC

Up to Refundable Tax Credit for Québec Film and Television Productions

32% of QLE for non- • 40 percent of eligible labour expenditures for original French language or giant screen
foreign CAP productions.
• 36 percent of eligible labour expenditures for French language or giant screen productions
Up to that have been adapted from a foreign format.
26% of QLE for foreign • 32 percent of eligible labour expenditures for other non-foreign productions.
CAP • 28 percent eligible labour expenditures for other productions adapted from a foreign format.
• Capped at 50 percent of production costs.
• Eight percent bonus for production costs related to the creation of digital animation or visual
effects (for non-French non-giant screen productions only).
• Up to 16 percent bonus for Québec regional productions.
• Eight percent bonus for fiction feature film or single documentary that does not receive
any financial assistance from a public organization.

20% “All spend” NO Refundable Tax Credit for Film Production Services
CAP • 20 percent of all-spend production costs (includes qualified labour costs and the cost of
qualified properties).
• An additional bonus rate of 16% is available for labour-based computer-aided special effects
16% Bonus of QLE and animation including the shooting of scenes in front of a chroma-key screen.
for SFX

12 • Producing in Canada
 Jurisdiction Tax credit

35% of QLE CAP Dubbing Tax Credit

• 35 percent of eligible labour expenditures capped at 50 percent of eligible dubbing costs.

FRENCH TITLES Multimedia Production Tax Credit

37.5% of QLE NO CAP
• 37.5 percent of eligible labour expenditures for French “mass market” titles.
NO-FRENCH TITLES
30% of QLE NO CAP • 30 percent of eligible labour expenditures for non-French “mass market” titles.
OTHER TITLES • 26.25 percent of eligible labour expenditures for all other eligible titles.
26.25% of QLE
NO CAP

SASKATCHEWAN

N/A Saskatchewan Film and Television Development Grant [Note: Not a tax credit]
• Pre-Development Stream: 50 percent of the total development cash budget, up to a
maximum of CA$5,000.
• First Draft Stream: 50 percent of the total development cash budget for this phase, up to a
maximum of CA$25,000.
• Final Draft Stream: 50 percent of the total development cash budget for this phase, up to a
maximum of CA$15,000.
• Slate Development Stream: 75 percent of the total development cash budget for this phase,
up to a maximum of CA$40,000.
Saskatchewan Feature Film & Television Production Grant
• Saskatchewan Stream: 30 percent of all eligible expenditures, up to a maximum of
CA$5,000,000.
• Service Production Stream: 25 percent of all eligible expenditures, up to a maximum of
CA$5,000,000
• For both streams, the following bonuses are available in the form of a grant (to a
commitment not exceeding a maximum of 40% of eligible Saskatchewan expenditures for
Saskatchewan Stream, or a maximum of 35% for Service Production Stream):
• 10% frequent filming bonus (where applicants complete 3 or more eligible productions
per year in Saskatchewan)
• 5% rural bonus (where majority production takes place a minimum 50km outside
Regina or Saskatoon)
• 5% Saskatchewan post-production bonus (where majority post-production is taking
place in Saskatchewan)
SaskTel Max Equity Fund [Note: Not a tax credit]
• Up to 20 percent of the approved cash budget.
Market and Export Development Grant [Note: Not a tax credit]
• Market and Export - Micro Stream: maximum of CA$5,000
• Market and Export - Major Stream: maximum of CA$25,000 per applicant per fiscal
year (whichever is the lesser) or a maximum of CA$50,000 per applicant per 24 months
(whichever is the lesser)
Market Travel Grant [Note: Not a tax credit]
• 1-3 times: 50% of the approved project budget or CA$5,000 (whichever is lesser)
• 4-5 times: 50% of the approved project budget or CA$3,500 (whichever is lesser)
• 6+ times: 50% of the approved project budget or CA$2,000 (whichever is lesser)

Producing in Canada • 13
 Jurisdiction Tax credit

THE YUKON

N/A - Rebate Program Film Incentive Program [Note: Not a tax credit]
(not a tax credit) • Spend rebate: 25 percent rebate of Yukon below-the-line spend where eligible Yukon labour
content equals or exceeds 50 percent of the total person days on the Yukon portion of the
production.

• Yukon Travel Rebate - Film and TV: 50 percent rebate for travel expenditures from Calgary,
Edmonton and Vancouver to Whitehorse calculated as the lesser of CA$2,000 multiplied by
the number of days of principal photography in the Yukon, to a maximum of CA$15,000 or
15% of Yukon expenditures.

• Yukon Travel Rebate - Commercials: 50 percent rebate for travel expenditures from Calgary,
Edmonton and Vancouver to Whitehorse calculated the lesser of CA$2,000 multiplied by
the number of days of production in the Yukon to a maximum of CA$10,000 or 10% of total
Yukon expenditures.

• Training Program: rebate of up to 25% of a trainer’s wages for the period during which they
are actively transferring skills to a Yukon trainee

Film Development Fund [Note: Not a tax credit]

• up to 50% of the Yukon expenditures up to a maximum of CA$25,000 or 33% of the total
project expenses, whichever is less, in the form of a grant

• an additional CA$10,000 may be awarded for costs associated with training and mentoring
a Yukon screenwriter or producer

• the total contribution may not exceed 75% of the total project costs

Film Production Fund [Note: Not a tax credit]

• maximum project contribution of CA$500,000

• for productions solely controlled by a Yukon resident or corporation, contribution based

on 30% of Yukon expenditures or 30% of total production costs, whichever is less, in the
form of a grant

• for co-productions, the contribution will be based on 30% of Yukon expenditures, or 20%
of total production costs, whichever is less

14 • Producing in Canada
Federal government
incentive programs

Federal Tax Credits

The Canadian federal government assists domestic
and foreign producers by offering a number of tax
incentives and funding programs that are available to
both “service” productions and “Canadian-content”
productions. The Canadian Audio-Visual Certification CPTC is equal to 25% of
Office (CAVCO), a branch of the Department of
Canadian Heritage and the Canada Revenue Agency
eligible labour expenditures,
(CRA), jointly administer the Canadian Film or Video capped at 60% of total
Production Tax Credit Program and the Film or production costs.
Video Production Services Tax Credit Program.
Only one of these tax credits may be claimed for
a particular production.

Eligibility requirements
Canadian Film or Video
Production Tax Credit Program • A production must be a linear, non-interactive film
or video production
(CPTC)
• The application has two parts: applicant production
The CPTC was established to aid in the development companies must apply to CAVCO for both a
of the Canadian film and production industry, Canadian film/video production certificate (Part
and to promote Canadian content programming. A) and a certificate of completion (Part B) for each
This tax credit is equal to 25 percent of eligible production. There is no deadline to submit a Part
labour expenditures, capped at 60 percent of total A application. An application for certificate of
production costs. The maximum CPTC available completion (Part B certificate) must be made within
for a production is therefore 15% of the total cost of 24 months of the first fiscal year-end following the
production net of assistance. commencement of principal photography. The
certificate must be issued by CAVCO within six
The tax credit is a refundable tax credit (that is, it is
months of this date.
fully payable to the production company even if it
owes no taxes). It is calculated in conjunction with • The production company must be a
provincial credits such that the eligible production prescribed taxable Canadian corporation
costs are reduced by any applicable provincial tax and a qualified corporation
credit amount. The holding of an interest in a film • The production company must be a taxable
or video production by a person other than the Canadian corporation that satisfies the criteria
production corporation will no longer disqualify the established by the Income Tax Act Regulations,
production for eligibility for a tax credit, unless the as interpreted and administered by CAVCO.
production or one of the investors is associated with
a tax shelter. • The corporation must be primarily in the business
of Canadian film or television production.

Producing in Canada • 15
• Only the production company or a prescribed • Some of the above do not apply to Treaty co-
person may own copyright in the production productions. Treaty co-productions should refer
during the 25-year period beginning when to the Telefilm Canada guidelines.
the production is complete and commercially
Eligible expenses
exploitable

• The production must not fall under the excluded • Eligible labour expenditures must be reasonable
genre categories or productions listed by CAVCO. under the circumstances, must be included in
These are news programs, talk and game shows, the cost to the production company, must be
sporting and award events, reality television, incurred for the stages of production (pre- to post-
productions that solicit funds, pornography, production), and must be directly attributable to
advertising, industrial or corporate productions, the production itself.
and productions other than a documentary, all or • Eligible labour expenditures exclude amounts paid
substantially all of which consists of stock footage. for the services of non-Canadian residents, unless
• The production must meet CAVCO’s key creative the person was a Canadian citizen at the time the
point requirements. payment was made.

• The production company must be owned and • Eligible costs may be incurred as early as two years
controlled, either directly or indirectly, by Canadian before principal photography begins, so that in-house
citizens or permanent residents in accordance development labour costs of an initial draft of a script,
with definitions found in a combination of the as well as the cost of further revisions, are eligible.
Citizenship Act, the Immigration Act and the
Investment Canada Act.

• All producer-related personnel must be Canadian

(some exceptions for productions involving non-
Canadian development).

• Not less than 75 percent of total labour costs must

be payable for services provided to/by individuals CAVCO has set guidelines
who are Canadian. At least 75% of the total of all to certify a film or television
post-production costs for a production must be
incurred for services provided in Canada. production as Canadian.
• Only the production company or a prescribed
person may control the initial licensing of
commercial exploitation rights for the production Qualifying as a Canadian
• Confirmation in writing from a Canadian production for the CPTC
distributor or a CRTC-licensed broadcaster that
the production will be shown in Canada within the CAVCO and the Canadian Radio-television and
two-year period beginning when the production is Telecommunications Commission (CRTC) are the
complete and commercially exploitable. two government bodies responsible for determining
whether a production qualifies as “Canadian.” For
• The production cannot be distributed in Canada
more information on certification by the CRTC,
by an entity that is not Canadian within the two-
see the “Qualifying as a Canadian production for
year period that begins when the production first
CRTC purposes” section below. CAVCO bases its
becomes commercially exploitable.
determination on a draft regulation to the Income
• The production company or a related taxable Tax Act (Canada), and has set guidelines that must
Canadian corporation must retain an acceptable be satisfied before a film or television production is
share of revenues from the exploitation of the certified as Canadian.
production in non-Canadian markets.

16 • Producing in Canada
Qualifying as a Canadian production: CAVCO • The Canadian producer must have and maintain
full responsibility and control over the negotiation
In order for a production, other than a co-production of initial exploitation agreements. Where the
or co-venture,1 to qualify as a Canadian film or video non-Canadian prior owner of the underlying
production under the CAVCO rules for Canadian rights retains exploitation rights to more than one
content-based tax incentives, and other government significant territory (i.e., US, Europe, Asia), after the
incentives or enhanced Canadian broadcast license producer has acquired the underlying rights, the
fees available for Canadian programs, the following producer will have the onus of establishing, to
must be satisfied. the satisfaction of CAVCO, that the situation does
Producer eligibility under CAVCO not interfere with the producer’s responsibilities
and control.
The Production Control Guidelines provide further
• The Canadian producer is entitled to reasonable
guidance in the determination of the eligibility of
and demonstrable monetary participation in terms
productions to the CPTC.
of budgeted fees and overhead, and participation
The Canadian producer2 must satisfy the following in revenues of exploitation. For example, the
requirements of production control: producer must demonstrate an equity ownership in
the project, and retain at least 25 percent of the net
• The Canadian producer must have and maintain profits from the exploitation of the production in
full control over the development of the project non-Canadian markets.
from the time at which the producer has secured
underlying rights. Prior development of the project • There are exemptions for the use of non-Canadian
by non-Canadians is permitted. producer-related personnel that may be granted.
The producer’s functions must not interfere with
• The Canadian producer must have and maintain the financial or creative authority of the Canadian
full responsibility and control over all creative producer and must relate to foreign broadcast,
aspects of the project, and expenditures related distribution or financing, or to the provision of
to the production of the project. A non-Canadian services under the supervision and control of the
individual or entity cannot have the right to overrule Canadian producer.
any creative or expenditure-related decision by
the producer. The CAVCO point system

• The Canadian producer must have and maintain A production must earn a minimum of six points
full responsibility and control over all aspects based on the following allocation system, with points
of production financing. Documentation must being awarded in each case if the function is wholly
demonstrate that the producer has assumed and performed by a Canadian.
retained the commercial risks associated with the
Under CAVCO’s policy regarding proof of Canadian
financing and production of the project. Where
citizenship or permanent residency, producers and
a non-Canadian has the right to overrule any
key creative personnel working under the Canadian
decision by the producer, the producer will have
Film or Video Production Tax Credit (CPTC) are
the onus of establishing, to the satisfaction of
required to have a CAVCO personnel number to be
CAVCO, that the situation does not interfere with
eligible for Canadian content points. To receive a
the producer’s responsibilities and control.
CAVCO personnel number, each eligible individual
must send a copy of their proof of Canadian
citizenship or permanent residency directly to
CAVCO. Previously, CAVCO required applicants under
1 The criteria are different for co-productions and co-ventures. Co- the CPTC to retain a copy of an individual’s citizenship
productions may qualify as Canadian Film or Video Productions for
the purposes of both the CPTC and CRTC rules, whereas co-ventures or permanent residency documentation. Now,
may qualify for status as a Canadian program only for CRTC purposes producers must collect CAVCO personnel numbers
(see “Qualifying as a Canadian production for CRTC purposes”).
2 The definition of “Canadian” and “producer” are set out in section
and include them in their applications.
1106 of the Income Tax Regulations (C.R.C., c. 945).

Producing in Canada • 17
 Live action productions

The point system is as follows for productions other

than animated productions:
Position Points

Director 2

Screenwriter 1 2

Highest Paid Lead Performer (or first voice) 1

Second Highest Paid Lead Performer (or second voice) 1

Production Designer/Art Director 1

Director of Photography 1

Music Composer (original music only) 1

Picture Editor 1

Total 10

In addition, it should be noted that either the Director

or Screenwriter, and either one of the two highest
paid leading performers must be Canadian.

Animated productions

A different 10-point scale applies to animated

productions. Animated productions must (other than
if it is a treaty co-production) satisfy a minimum of six
of the following 10 points to qualify as a Canadian film
or video production. Points are only awarded where
the function is wholly performed by
a Canadian or, in the case of location-base points,
where the work is performed solely in Canada.
Position Points

Director 1

Principal screenwriter and Storyboard Supervisor 1

Highest Paid or Second Highest Paid Lead Voice2 1

Design Supervisor 1

Camera Operator where operation is in Canada 1

Composer of the Musical Score (original music only) 1

Picture Editor 1

Layout and Background performed in Canada 1

Key Animation performed in Canada 1

Assistant Animation/In-betweening performed in Canada 1

Total 10

1 In the case of films, points will only be awarded for the screenwriter
if all screenwriters are Canadian, or if the principal screenwriter and
author of the published work on which the screenplay is based are
Canadian.
2 The criteria used to determine which performers are lead performers
are: (i) remuneration, including benefits, residuals, travel and living
18 • Producing in Canada
expenses, etc., (ii) billing and (iii) screen time.
As with live action productions, the Director, or Qualifying as a Canadian
principal screenwriter and Storyboard Supervisor
must be Canadian. In addition, the highest or second production for CRTC purposes
highest paid lead voice must be Canadian, and all key
In addition to the content requirements administered
animation must be done in Canada.
by CAVCO, the Broadcasting Act provides a
The CAVCO cost criteria: Canadian expenditures framework of rules to determine what is “Canadian.”
The organization charged with the responsibility of
The CAVCO rules require that at least 75 percent of interpreting and applying these rules is the CRTC. The
the total costs for services provided in relation to CRTC is also the government organization responsible
production must be paid to Canadians in respect of for issuing licences to Canadian broadcasters and
services rendered by Canadians, regardless of where regulating the amount of time the broadcasters must
such services are rendered. The following costs are devote to Canadian programs.
excluded from the calculation:
The CRTC has two Pilot Projects to encourage
• Post-production and laboratory services; the creation of “high impact productions.” They
sit outside of the normal parameters for deeming
• Producer remuneration (only fees paid to Canadian
a production to be Canadian. If a program is not
producer or co-producer);
recognized within the Pilot Projects, it must follow the
• Amounts paid to key creative personnel who are full criteria.
covered by the point system;

• Legal and accounting costs;

• Insurance costs; and

• Financing costs.

In the case of animated productions, the costs

associated with positions that entitle the production The CRTC has two Pilot
to a point based on the location where the work is Projects to encourage
done are not considered to be excluded costs.
the creation of “high
In addition, a minimum of 75 percent of the aggregate
cost of post-production and laboratory work,
impact productions.”
processing and final preparation must be paid for
services provided in Canada.

It should also be noted that producers and licensees

can apply to CAVCO for preliminary recognition that Pilot project 1
a film or television production will be a Canadian Film
The CRTC will recognize as Canadian live action drama
or Video Production if the final production conforms
and comedy productions based on the adaptation of
to information submitted to CAVCO. This Canadian
best-selling novels written by Canadian authors.
Film or Video Production Certificate or “Part A
Certificate” (which also provides an estimate of the Pilot project 2
claimable tax credit) assists producers in financing
productions. The production in question must be The CRTC will recognize as Canadian live action
completed within two years of the year-end in which drama and comedy productions with a budget of at
principal photography began, and must file for a final least CA$2 million per hour.
certificate of completion or “Part B Certificate” within Productions under both Pilot Projects will only have to
24 months from the end of the taxation year in which meet the following criteria:
principal photography began. The Part B Certificate
must be issued within 30 months from the end of the • The screenwriter is Canadian;
year in which principal photography began.
• One lead performer is Canadian;
For more information on CAVCO, visit • The production company is Canadian;
[Link]
services/funding/[Link] Producing in Canada • 19
• At least 75 percent of the service costs are paid to Basic definition of Canadian content
Canadians; and
The CRTC will certify a program as “Canadian” if it
• At least 75 percent of the post-production costs are meets the requirements outlined in the three sections
paid to Canadians. listed below.

Traditional criteria (A) Producer

There are clear similarities in the criteria used by The producer must be a Canadian citizen that is the
CRTC and CAVCO, and a production that is certified central decision-maker throughout the production.
by CAVCO as a “Canadian film or video production” In the event there are non-Canadians engaged in
will automatically qualify as “Canadian” for CRTC producer-related functions, the production may still
purposes. be certified as “Canadian” provided that:

However, a production the CRTC certifies as • Remuneration of the Canadian producer exceeds
“Canadian” may not necessarily be certified as a the total remuneration to foreign producers; and
“Canadian film or video production” by CAVCO.
• Non-Canadian producers are on set only to
A program that only achieves certification by the observe, to a maximum of 25 percent of principal
CRTC as “Canadian” will not be able to access the photography.
CPTC. However, there are other benefits available to a
(B) Point system
program being accorded certification as “Canadian”
by the CRTC. Canadian broadcasters (which include In evaluating Canadian content, the CRTC adopts
pay and specialty channels) are required as a CAVCO’s point system. In addition, the Canadian
condition of their licences to air a minimum amount expenditure requirements are substantially similar to
of Canadian programming in prime time, so they are CAVCO’s requirements. The CRTC has established
willing to pay a premium for programming that has criteria for live action and animated productions, and
been certified as Canadian. In addition, Canadian each must achieve six points based on the following
pay and speciality channels have to ensure that key creative functions being performed by Canadians.
35 percent of all programs broadcast overall are
made by Canadians. For the foregoing purposes,
programming that is certified by either the CRTC or
CAVCO as “Canadian” will suffice.

20 • Producing in Canada
Live-action production or continuous action Animated production
animated production (other than continuous action animation)
Position Points Position Points

Director 2 Director 1

Screenwriter 2 Scriptwriter and Storyboard Supervisor 1

Lead Performer or First Voice 1 First or Second Voice, or First or Second Lead Performer 1

Second Lead Performer or Second Voice 1 Design Supervisor 1

Production Designer or Art Director 1 Layout and Background (location) 1

Director of Photography or Chief Camera Operator 1 Key Animation (location) 1

Music Composer 1 Assistant Animation/In-betweening (location) 1

Picture Editor 1 Camera Operator (person) and Operation (location) 1

Music Composer 1
Total 10
Picture Editor 1

Total 10

Producing in Canada • 21
Notwithstanding the above tables, at least one of the • Traditional animation: Refers to either
Director or Screenwriter positions, at least one of the “continuous” or “frame-by-frame” animation.
two lead performers. Animated productions have “Continuous” animation refers to the process of
additional requirements for the the people occupying filming real figures as they are manipulated using
the role of the director, or the combination of mechanical devices, and for the purpose of CRTC
scriptwriter/storyboard supervisor, must be Canadian, “Canadian content,” these animations will be
the location of the key animation, excluding pixilation, treated as “live-action” productions. “Frame-by-
must be in Canada, the people occupying the role of frame” animation refers to the process of filming
the first or second lead performers or voices must be or recording a series of poses of figures, shapes,
Canadian. objects, etc. in sequence on successive frames
of recording material, thereby giving the illusion
The people occupying the role of the camera
of movement.
operator must be Canadian, and the location of the
camera operation, for pixilation only, must be done (C) Expenditure requirements
in Canada..
Production Costs. These costs represent all
The CRTC will evaluate a live, videotape or film expenditures associated with a production. At least
production as a live-action or continuous action 75 percent
production. Animation is the process of creating the
illusion of motion through the use of inanimate or of service costs must be spent on Canadians. At least
still images. 75 percent of post-production and laboratory costs
must be spent on services provided in Canada by
The CRTC recognizes two types of animation: Canadians or Canadian companies. The following
costs are excluded from both categories:
• Computer animation: Refers to the use of
computers assisting or generating animated • Remuneration for key creative personnel eligible
movement principally or wholly through digital for points;
image synthesis using computers and
• Remuneration for producer(s) and co-producer(s)
computer programs.

22 • Producing in Canada
(except for producer-related positions); eligible for enhanced broadcast license fees since
they will qualify as “Canadian” for CRTC purposes.
• Accounting and legal fees; Furthermore, unlike Official Co-Productions, co-
• Insurance brokerage and financing costs; ventures may be produced with American partners.

• Indirect expenses; Co-ventures are considered “Canadian” if it can be

• Contingency costs; shown that the Canadian production company has
at least equal decision-making power over creative
• Goods purchased, such as film/videotape supplies; elements and is responsible for administering
and the entire portion of the Canadian budget. The
• Other costs not directly related to production. production must also obtain a minimum of six
Canadian content points, spend 75 percent on
Series Canadian costs in the services and post-production
A series is defined as a program with two or more categories, and the director or writer and at least one
episodes produced by the same producer or of the two leading performers must be Canadian.
production company. The programs must be equal When broadcast or distributed by a licensee of the
in length and share a common title, theme, and CRTC, co-ventures will qualify for special recognition
situation or set of characters. if the CRTC is satisfied that the documentation shows
The CRTC has recognized that production elements that the Canadian production company:
of a series may vary, and as such, has established • Has equal decision-making responsibility on all
a degree of flexibility. A series will be certified as creative elements; and
“Canadian” by the CRTC even if certain individual
episodes do not satisfy the minimum point • Is responsible for the administration of at least the
requirements, provided that: Canadian element of the production budget.

When determining whether the decision-making

• At least 60 percent of the series’ episodes meet or
responsibility for the production resides with the
exceed the requirement of six Canadian content
Canadian production company, the CRTC will require
points per episode;
the following:
• The series attains an average of six points per
episode; and • The Canadian production must have sole or co-
signing authority on the production bank account;
• All episodes are broadcast at equitable times.
• The Canadian production company must retain a
Sporting events 50 percent financial stake and 50 percent share of
Sporting events or tournaments are classified as the profits;
Canadian by the CRTC, provided that the Canadian • The Canadian production company must be at
licensee or production company maintains control financial risk and have budgetary responsibility; and
over the production and provides commentators. At
• The Canadian production company must have at
least one of the major on-screen personalities must
least an equal measure of approval over all elements
be Canadian and, if the event takes place outside of
of the production with its co-venture partners.
Canada, Canadian teams or athletes must compete.

Special recognition for co-ventures with

Americans and other international partners

Co-ventures include co-productions with a foreign

producer where there is no co-production treaty
between the two countries or where the co-
production treaty does not include the venture in
question. In the absence of official co-production
status, these productions do not qualify for the CPTC.
However, co-ventures certified by the CRTC are

Producing in Canada • 23
Co-ventures with Commonwealth countries, French- with a foreign production with minor Canadian
speaking countries or countries with which Canada involvement. A “twinning” involves matching a Canadian
has a film or television production treaty, may be production with a foreign production with only a financial
provided additional flexibility. The production will role being played by Canadians. Under the CRTC
be considered Canadian if: rules, “production packages” and “twins” can qualify as
Canadian content if the following criteria are satisfied:
• The director or writer, and at least one of the
two leading performers are Canadian; • The Canadian copyright is held by Canadians for
both productions;
• It meets a minimum of five points for key
creative personnel; • The budgets of both productions are approximately
equal, within 15%.
• A minimum of 50 percent of the total costs incurred
for services is paid to Canadians; and • The co-production agreements for the productions
are submitted to the CRTC;
• At least 50 percent of processing and final
preparation are paid for services in Canada. • The Canadian production company has financial
participation and a minimum 20 percent share in
Production packages
the profits of both productions;
The CRTC defines a “production package” as two or • A broadcaster may receive a credit for a production
more co-productions or co-ventures, undertaken by that has fewer Canadian elements, if it were to
a Canadian production company in connection with broadcast the production with more Canadian
one or more foreign production companies, where a elements at an equitable time;
production with minor foreign involvement is matched

The CRTC defines a

“production package” as
two or more co-productions
or co-ventures, undertaken
by a Canadian production
company in connection
with one or more foreign
production companies.

24 • Producing in Canada
• All the productions within the package fall in the Dramatic Program Credit
same program category. It should be noted that
animation productions are not eligible to form part The CRTC will grant a 150 percent time credit to a
of a production package; Canadian broadcaster each time a certified dramatic
production is broadcast that meets the following criteria:
• The duration of both matched (aka twinned)
productions are approximately equal; • Proof of Canadian citizenship is provided for all
persons filling the role of producer, producer-
• The production package program is a drama,
related personnel and key creative positions.
comedy, variety, documentary or children’s
programming; and • Certified as a Canadian program and achieves
10 points; and
• Both matched (aka twinned) productions receive
equitable scheduling on the same Canadian station • Contains a minimum of 90 percent dramatic
or network. content.

The time credit will be granted within a two-year

period from the date of the first broadcast.

For more information on these criteria, visit

[Link]/canrec/eng/[Link].

Producing in Canada • 25
 • The total cost for a film or video production
(including feature films) for the 24-month period
after the date the principal filming or taping began
must be more than CA$1 million. The total cost for
each episode of a television series (more than one
episode or a pilot for a television series) must be
The PSTC encourages more than CA$100,000 for an episode shorter than
30 minutes, or CA$200,000 for any other episode.
corporations to employ
• The production must not fall under the excluded
Canadians and is equal to genre categories or productions listed by CAVCO.
16% of qualifying labour Eligible expenses
expenditures with no cap.
Expenses must be Canadian labour expenditures,
which:

• Are reasonable in the circumstances;

Film or Video Production
• Are directly attributable to the production;
Services Tax Credit Program
• Were paid to persons who were residents to
(PSTC) Canada at the time the payment was made;
A production that does not meet the Canadian • Were incurred during the production process
content criteria for the CPTC may be eligible for (final script to post-production);
the PSTC. The PSTC was designed to encourage
corporations to employ Canadians. The company can • Are paid for services provided in Canada; and
be a foreign-owned or Canadian-owned corporation. • Are paid in the year or within 60 days after the
This tax credit is equal to 16 percent of qualifying end of the year.
labour expenditures paid to Canadian residents, and
For more information on the PSTC program, visit
there is no cap on the amount that can be claimed
[Link]/candian-heritage/cavo-tax-credits
under this credit.

The tax credit is a refundable tax credit (that is, it is Canada Media Fund (CMF)
fully payable to the production company even if it
owes no taxes), and it is calculated in conjunction The purpose of the CMF is to “foster, promote,
with similar provincial tax credits. develop, and finance the production of Canadian
content and relevant applications for all audiovisual
Eligibility requirements media platforms.”

• The applicant company performing production

services must be either a Canadian-owned or
foreign-owned corporation with a permanent
establishment in Canada.

• The corporation must be primarily in the business

of video or video production services. If the
business of a corporation includes other activities,
such as the distribution of films and videos, it
may not be considered an eligible production
corporation for the PSTC.
The CMF operates on a
• The production company must either own the
budget of approximately
copyright in the film during the production period CA$365 million and is subject
or be engaged directly by the copyright holder to
to yearly review.
provide production services.

26 • Producing in Canada
Streams of funding (v) the Digital Linear Series Program: designed
to support digital linear series in their second (or
CMF’s contributions are divided into two streams subsequent) season, created initially for online
of funding: platforms and in designated CMF genres

• The Experimental Stream encourages the (vi) the Innovation & Experimentation Program:
development of interactive digital media content and supports Canadian interactive digital media content
software applications that are innovative and leading- and software applications that are innovative and
edge and leading-edge
• The Convergent Stream, which supports the creation (vii) the Prototyping Program: allocates funding to
of content in four underrepresented genres: drama, projects at the early stages of building a project to
documentary, children’s & youth, and variety & demonstrate its intended functionalities and design,
performing arts. and is a phase for experimenting, testing, and
validating different concepts and hypotheses to arrive
Experimental Stream at a first functional prototype
This selective stream supports digital content that is
The CMF will choose projects under this stream
innovative and interactive. There are seven programs
according to an evaluation criteria and/or grid
within the stream:
weighed differently per program.
(i) the Accelerator Partnership Program: designed
Eligibility requirements
to provide producers of digital media projects with
better access to mentorship, market and capital The following eligibility requirements pertain to
across the country and abroad the Experimental Stream programs excluding the
Development Packaging Program: Short Form
(ii) the Commercial Projects Program: designed
Scripted Series and the Digital Linear Series Program.
to fund projects that have a greater probability of
For a complete summary of eligibility requirements in
success based on their potential to attain stated
connection with all Experimental Stream programs,
commercial objectives, demonstrate business
please visit [Link].
opportunity, and achieve profitability
• Eligible applicants must be Canadian-controlled,
(iii) the Conceptualization Program: allocates funding
taxable Canadian corporations with their head
to eligible projects at the beginning of a project’s
office in Canada and is in good standing with
creative process with the objective of giving a project
all applicable talent and industry associations
a better chance to succeed for future stages of
and guilds. Or, the applicant can be a Canadian
financing, allowing applicants to create and test a
broadcaster.
proof of concept and verify either the design idea,
concept assumption, or demonstrate a functionality • The applicant must own the copyright for the
in preparation for the prototyping phase and beyond production.

• The project’s underlying rights must be owned, and

(iv) the Development Packaging Program: Short Form
are significantly and meaningfully developed by
Scripted Series: designed to assist independent
Canadians.
production companies create high quality original
scripted short form series, by providing the • The project must be produced in Canada, with at
opportunity for intensive creative and business least 75 percent of its eligible costs being Canadian
development and packaging, which ultimately allows costs, however, some flexibility will be granted for
projects to be in a better position to attract partners, eligible costs devoted to marketing and promotion
financing, distribution, and move into production activities, except with regard to the Prototyping
Program, with at least 50% of the eligible costs
being Canadian costs for marketing.

Producing in Canada • 27
• The project must be, and remain throughout • Applicants may only apply for production support
its production, under Canadian ownership, and in this Program. Marketing and promotional costs,
Canadian executive, creative and financial control. however, are eligible and should be included in
the project’s production budget.
• An eligible project must be digital media content
and/or application software that is innovative and • Successful applicants receive funding in the form
interactive. It must be connected to the Canadian of a recoupable investment
cultural sector.
Conceptualization Program
• Eligible projects include, but are not limited to, mobile
applications, video games and web applications. Film • At least 40% of this program’s budget is exclusively
and Television convergent projects are not eligible. reserved for projects that meet the definition of a
‘Regional Project’
• Except with regard to the Prototyping Program, for
Production, and Marketing and Promotion support, • At least 25% of this program’s budget is exclusively
eligible projects must have a letter of intent from reserved for projects that meet the definition of a
a third party market-channel partner committing ‘Diverse Community Project’
to take the project to market and to actively
• Successful applicants receive funding in the form of
promote it. This may be waived if the applicant
a non-interest-bearing advance that will be repayable
can demonstrate their ability to self-distribute
to the CMF according to certain conditions
the project.
• A single eligible project may receive funding from
CMF contribution the CMF’s Conceptualization, Prototyping and
either of its Production Programs either alone or in
Accelerator Partnership Program combination with each other, but in no case will the
CMF contribute more than CA$1.5 million towards a
• Up to CA$30,000.
single project
• This amount will be paid in the form of a non-
repayable contribution directly to the applicant by • Successful applicants shall receive funding in an
the CMF. amount appropriate to the needs of the project and
subject to a maximum contribution of the lesser of
Commercial Projects Program
75% of the project’s eligible costs or CA$15,000
• Maximum Contribution - All Funding Activities: Development Packaging Program: Short Form
a single project may receive Conceptualization, Scripted Series
Prototyping, and Commercial Projects
Program Production support, either alone or • Offered by the Independent Production Fund (IPF)
in combination with each other. However, the and the CMF. Not confirmed for 2023-2024.
maximum amount of total CMF funding for any • The maximum funding available for each eligible
one project is CA$1.5 million. project is CA$30,000
• Maximum Contribution - Production: successful • Funding will be in the form of a repayable advance
applicants receive funding in an amount
appropriate to the needs of the project and • If the project’s budget exceeds CA$30,000,
subject to a maximum contribution of the additional financing must be confirmed at the time
lesser of 75% of the project’s eligible costs or of application
CA$1.5 million. Any CMF Conceptualization • If the producer does not request production
or Prototyping funding that is converted into financing from the IPF for the series, in addition to
Production funding will be included towards the loan repayment, the IPF will also receive 10%
the CA$1.5 million cap. For international co- of the producer’s profit participation in the series,
productions, the maximum contribution will be subsidiary rights and subsequent works based on
calculated on the lesser of the eligible costs the project developed through this program
of the Canadian portion of the project’s global
budget and the eligible costs of the Canadian
portion of the global final costs.

28 • Producing in Canada
Digital Linear Series Program Prototyping Program

• Successful applicants shall receive production • Successful applicants receive funding in the form of
funding in the form of a recoupable investment a non-interest-bearing advance that will be repayable
to the CMF according to certain conditions
• Funding shall be in an amount appropriate to the
needs of the project and subject to a maximum • A single eligible project may receive funding from
contribution of the lesser of 60% of the project’s the CMF’s Conceptualization, Prototyping and
eligible costs or CA$250,000 either of its Production Programs either alone or in
combination with each other, but in no case will the
• For international co-productions, the maximum
CMF contribute more than CA$1.5 million towards a
contribution will be calculated on the lesser of the
single project
eligible costs of the Canadian portion of the project’s
global budget and the eligible costs of the Canadian • Successful applicants receive funding in an amount
portion of the global final costs appropriate to the needs of the project and subject
to a maximum contribution of the lesser of 75% of
Innovation & Experimentation Program
the project’s eligible costs or CA$250,000
• Applicants may only apply for production support
in this program. Marketing and promotional costs,
however, are eligible and should be included in the
project’s production budget

• Successful applicants receive funding in the form of

a recoupable investment

• A single project may receive Conceptualization,

Prototyping and Innovation & Experimentation
Program Production support, either alone or in
combination with each other, but in no case will the
CMF contribute more than CA$1.5 million towards a
single project

• Successful applicants receive funding in an amount

appropriate to the needs of the project and subject
to a maximum contribution of the lesser of 75% of
the project’s eligible costs or CA$1.5 million

• Any CMF Conceptualizing or Prototyping funding

that is converted into Production funding will be
included towards the CA$1.5 million cap described
above

• For international co-productions, the maximum

contribution will be calculated on the lesser of the
eligible costs of the Canadian portion of the project’s
global budget and the eligible costs of the Canadian
portion of the global final costs

Producing in Canada • 29
Convergent Stream Targeted Development Funding
This stream is intended to support the creation of This Convergent Program allocates funding to projects
content in four underrepresented genres: drama, at the development stage. Beginning in 2023-2024,
documentary, children’s & youth, and variety & the development funding guidelines are consolidated
performing arts. for these programs: the Pilot Program for Racialized
Communities Development allocation, the Indigenous
Funding will be paid directly to the applicant producer Development allocation, the Francophone Minority
in the form of license fee top-ups, equity investments, Development allocation, the Quebec French Regional
and repayable contributions that are paid directly to Development allocation, and the Northern Incentive
the producers. Development allocation.

Development Envelope Program Projects are awarded funding on a first-come,

first-served basis until resources are depleted or
This Convergent Program allows the CMF to make the program closes. See the following eligibility
contributions to Canadian broadcasters who then requirements and contribution amounts.
choose which development projects they wish
to allocate funds to. Projects must have received Racialized Community Development
a financial commitment from the broadcaster in
• Applicants must meet requirements under the
question that meets or exceeds a specific amount.
Racialized Community definition.
This amount is calculated by the CMF. Broadcasters
are required to direct a minimum percentage of their • Applicants may only apply with one project per
allocated dollars to projects where a designated fiscal year.
percentage of key creative roles are held by
individuals that identify as women. • Maximum contribution is the lesser of 50% of
eligible costs (or 75% for Regional Development
Amount of contribution applicants) or $200,000 for all development
activities.
Canadian broadcasters may decide what proportion
of their awarded funds to allot to a project, up to • The development fee threshold is 10% of eligible
a specified maximum contribution. The maximum costs and the contributing Canadian Broadcaster
contribution by the CMF, for English and French, may only trigger five projects.
to a project is the lesser of 50% (or 75% for an English
Regional Development Project) of the eligible costs in Indigenous Development
development, up to CA$200,000 for all development
• Applicants must meet requirements under the
activities combined and all eligible
Indigenous definition.
types of programming.
• Applicants may only apply with one project per
All applications must include a commitment for a
fiscal year.
development fee (which must meet or exceed a
minimum amount) by a Canadian broadcaster or • Maximum contribution is the lesser of 50% of
broadcasters with access to a CMF Broadcaster eligible costs (or 75% for Regional Development
Development Envelope allocation. applicants) or $200,000 for all development
activities.

• The development fee threshold is 10% of eligible

costs and either a Canadian Broadcaster or CMF
eligible Digital Distributor may contribute.

• The development materials may be in French,

English or an Indigenous language.

30 • Producing in Canada
Francophone Minority Development Early-Stage Development
• Applicants must meet requirements under the Program
Francophone Minority definition.
This Convergent Program is exclusively for eligible
• Applicants may only apply with two projects per writers, and allocates funding to projects at the
fiscal year. beginning of a project’s creative process. An eligible
project in this program is an English- or French-
• Maximum contribution is the lesser of 75% of
language television component.
eligible costs or $200,000 for all development
activities. Successful applicants receive non-interest bearing
advances, and 100% of the advance must be repaid
• The development fee threshold is 25% for Drama
on or before the first day of official preparation
and 15% for Documentary, Children’s and Youth,
for principal photography of the project. Eligible
Variety and Performing Arts.
projects must be new projects that have not received
• The creative materials must be in French. any previous CMF funding. Projects that receive
funding through this program may subsequently
• Either the screenwriter or director must reside be submitted to CMF Development and Production
outside of Québec. Programs. Any funding a project receives through
this program in addition to funding available through
Québec French Regional Development
other CMF programs will be integrated into that
• Applicants must meet requirements under the project’s development and/or production budget and
Regional Development Applicant definition and the financial structure.
regions must be within the province of Québec.
Amount of contribution
• Applicants may only apply with two projects per
The CMF may contribute up to a maximum of
fiscal year where only one may be a returning
CA$40,000.
series.

• Maximum contribution is the lesser of 75% of Performance Envelope Program

eligible costs or $200,000 for all development
This Convergent Program enables the CMF to allocate
activities.
funding envelopes to Canadian broadcasters in an
• The development fee threshold is 10% from a amount that reflects their track record of supporting
contributing Canadian Broadcaster. Canadian programming. Even though broadcasters
receive a funding envelope allocation, the actual
• The creative materials must be in French. funding is paid directly to the applicants according to
Northern Development a payment schedule. Canadian broadcasters are then
able to choose to which projects to contribute portions
• Applicants must meet requirements under the of their envelope, subject to specified maximum
Regional Development Applicant definition and the contribution amounts.
regions must be either the Northwest Territories,
Nunavut, Nunavik or the Yukon. Amount of contribution

• Applicants may only apply with two projects per • The CMF applies different license fee threshold
fiscal year. amounts, maximum contribution amounts,
maximum terms and other calculation depending
• Maximum contribution is the lesser of 75% of on the original language of production of the
eligible costs or $50,000. television component of a project.

• The development fee threshold is 15% from a • Projects may receive contributions from both a
contributing Canadian Broadcaster or no threshold if French-language Performance Envelope allocation
broadcasting through a CMF-approved community and an English-language Performance Envelope.
channel operating in the northern regions.
• Contributions may be provided in a mix of
• The creative materials must be in English or French. licence fee top-ups (non-recoupable) and equity
Producing in Canada • 31
 investments (recoupable) according to a set The following eligibility requirements pertain to all
formula. Regional Production Programs:

• The first CMF contribution to a project will be in the • A region is considered 150 km by the shortest
form of a licence fee top-up, which may reach a possible roadway from Toronto (for English
maximum of 20% of the project’s eligible costs. productions) or from Montreal (for French
productions).
• Amounts in excess of this maximum will be in the
form of an equity investment up to the maximum • The overwhelming majority of principal
amounts, licence fee top-up and equity investment photography (or key animation activities) for the
combined. Television Component must occur in the region,
with exceptions for documentaries.
• The CMF considers an eligible equity investment
request of less than $100,000 too small for equity • Applicants must be based in the regions (with
participation. Such requests will be automatically their head office located there) and must maintain
converted to a licence fee top-up. full creative and financial control of the Television
Component or for a co-production with a non-
• CMF contributions may be combined in the
regional partner, control of at least 51% of decisions
financing of a project from more than one
and copyright.
Performance Envelope allocation.
• Applicants must initially control the distribution
• The total combined CMF contribution committed
rights, or for a co-production with a non-regional
from all Performance Envelope allocations must
partner, the markets and revenues must be shared
respect any applicable maximum contribution
equitably to financial participation.
amounts and the total combined CMF contribution
committed from all Performance. • The production must comply with regional
language requirements (either French or English is
• Envelope allocations must respect the
acceptable for the Northern Incentive).
licence fee top-up and equity investment split
described above. • Projects that received CMF funding in previous
years are not eligible.
• Maximum contributions:
• All other sources of funding must be confirmed at
• All Canadian broadcasters (other than
the time of the application.
educational broadcasters): 49% of the project’s
eligible costs; and, Québec French Regional Production Incentive
• For educational Canadian broadcasters only
• Applicants must be based in Québec.
(Knowledge Network, Tele-Quebec, TFO, and
TVO): 60% of the project’s eligible costs. • The maximum contribution is the lesser of 15% of
eligible costs or $225,000.
Regional Production Funding
English Regional Production Bonus
Beginning in 2023-2024, the guidelines have
been combined for the Québec French Regional • Applies to all regions of Canada meeting the
Production Incentive, the English Regional Production region definition, excluding Québec, the Northwest
Bonus, and the Northern Incentive. The contribution Territories, Nunavut, Nunavik, and the Yukon.
from the CMF will take the form of a licence fee top-
• The maximum contribution is the lesser of 15% of
up contribution under the Performance Envelope
eligible costs or $1,000,000.
program and is non-recoupable. Eligible projects are
awarded funding on a first come, first served basis • No singular province can access more than 35% of
until funds are depleted. Funding may be combined the total funds.
with other CMF funding up to a maximum of 84% of
eligible costs.

32 • Producing in Canada
Northern Incentive • Beginning in 2023-2024, all live-action projects
with eligible costs over the following per-hour
• Applies to the Northwest Territories, Nunavut, thresholds must use a carbon calculator to track
Nunavik, and the Yukon. emissions generated: Drama: $800,000 per hour;
• The maximum contribution is the lesser of 30% of Children & Youth and Variety and Performing Arts:
eligible costs or $200,000. $750,000 per hour; and Documentary: $400,000
per hour.
• The entity contributing the licencing fee may be
a community channel operating in any of the • Projects must be new productions and receive 10
applicable regions. CAVCO Canadian content points.

• Producer’s Fees and Corporate overhead must not • Projects must have underlying rights be owned,
exceed 30% of the production budget. and significantly and meaningfully developed, by
Canadians.
Francophone Minority Program • The television component must meet eligibility
requirements for Canadian production, filming,
This Convergent program is designed to encourage
ownership, and control.
the creation of content that reflects the realities
of French language communities living outside of Amount of contribution
Québec. This program is allocated on a selective
and first come, first served basis. The Program may CMF contributions are a mix of licence fee top-ups
provide to a project a mix of licence fee top-ups (non- and equity investments. The first CMF contribution
recoupable) and equity investments (recoupable) to the project will be in the form of a licence fee top-
according to a set formula. up to a maximum of 25% of the project’s eligible
costs. Amounts in excess of this maximum will be in
The following eligibility requirements apply: the form of an equity investment, to a maximum of
49% of eligible costs, licence fee top-up and equity
• Applicants must have a head office outside of
investments combined. The CMF considers an eligible
Québec and all shareholders residing outside of
equity investment request of less than CA$100,000
Québec for at least three years.
too small for equity participation. Such requests will
• Either the screenwriter or director must reside be automatically converted to a licence fee top-up. If
outside Québec. a project (a) accesses funds between multiple CMF
programs, or (b) is co-produced with a production
• Projects that previously received CMF funding may company with a head office in and that operates from
not apply. the Province of Quebec, the license fee top-up/equity
• The language of development and production investment division will be applied to the project’s entire
must be French. budget according to the same maximum contribution
percentages noted above.
• Applicants must hold 51% of copyrights on a
permanent basis, retain a financial interest in the The CMF’s maximum contribution shall be the
project, and must have initiated and meaningfully lesser of 49% of the project’s eligible costs or the
participated in the project’s development. following amounts (depending on the applicable
genre):
• Projects must have a minimum Performance
Envelope Allocation of at least 7% of eligible costs. • Drama: CA$1,400,000

• The production must fall into an eligible genre: • Animation: CA$750,000

drama, documentary, children’s and youth • Other Genres CA$550,000
programming, and variety and performing arts.
For audiovisual treaty co-productions, the CMF
maximum contribution will be calculated on the lesser
of the eligible costs of the Canadian portion of the
project’s global budget and the Eligible Costs of the
Canadian portion of the global final costs of the project,

Producing in Canada • 33
as certified by Telefilm Canada’s Business Affairs and ownership), (iii) in the case of an interprovincial
Certification Department. co-production, owns at least 51% of the copyright
of the project, (iv) in the case of a co-production,
Broadcasters may combine funds from their shares equitably in fees payable to producers and
Performance Envelope allocations with funding from corporate overhead, (v) initially owns and controls
the Francophone Minority Program in the same fiscal the distribution rights and retains ongoing
year. The total CMF contribution from all programs is
financial interest in the project (or in the case
limited to 84% of eligible costs.
of a co-production, the markets and potential
revenues are shared equitably in proportion to the
Anglophone financial participation of each co-producer), and
Minority Incentive (vi) has meaningfully participated in the project’s
development.
This Convergent program is designed to encouage
television convergent production by both majority • Applicants and projects must meet Performance
and minority official-language sectors. This program Envelope Guidelines.
is allocated on a first come, first served basis, until
• The original language of projects must be English.
funds are depleted or the application deadline,
whichever comes first. • Projects that received CMF funding in previous
years are not eligible.
The eligibility requirements are as follows:
• All other sources of funding must be confirmed at
• The overwhelming majority of principal
the time of the application.
photography must occur in Quebec, with
exceptions for documentaries, and the applicant
must (i) be based in Quebec, (ii) be in full control
of the creative, artistic, technical, and financial
aspects (or in the case of a co-production,
has this control in proportion to its copyright

34 • Producing in Canada
Amount of contribution Amount of contribution

The CMF’s contribution will be a license fee top-up, • If an Applicant is eligible to apply for other CMF
with the maximum contribution being the lesser of incentives, the amount offered to the applicant
15% of eligible costs or CA$900,000. through the Aboriginal Program may be lower
than the applicant’s originally requested amount.
In the case of an eligible co-production, the amount
of the incentive will be calculated on the portion of • Additionally, broadcasters may combine funds
the eligible costs associated with the province of from their Performance Envelopes with funding
Quebec. from the Aboriginal Program. The Licence Fee
Threshold amount for the Aboriginal Program
The incentive may be combined with funding from will then apply to the total eligible costs. Projects
other CMF funding programs. In such cases, it may receive amounts up to the maximum
will be awarded separately and in addition to any contribution specified for the Aboriginal Program;
amounts contributed to the project through other any additional funds will be taken from the
CMF programs, and without regard to maximum broadcaster’s Performance Envelope. The total
contribution amounts applicable to those programs. CMF contribution from all programs is limited to
The total CMF contribution from all programs is 84 percent of eligible costs.
limited to 84% of eligible costs.
The Program may provide a mix of licence fee
top-ups (non-recoupable) and equity investments
Indigenous Program: Production
(recoupable).
This Convergent Program supports the growth of
Beginning in 2023-2024, the development and pre-
audiovisual production from First Nations, Inuit, or
development components have been consolidated
Metis producers. The CMF recognizes the necessity
with other programs. See Predevelopment and
to support the narrative sovereignty of all Indigenous
Development Funding Guidelines.
peoples to Canada and their right to tell their own
stories. Indigenous-language projects which are Beginning in 2023-2024, pre-development and
versioned into English or French can apply for development activities will be offered in the Targeted
financing from this Program, from the Performance Development Funding and Predevelopment Funding
Envelope Program, or through a combination of the programs.
Performance Envelope and this Program. Projects are
evaluated selectively according to an evaluation grid.

Projects are evaluated according to an evaluation

grid, must receive eligible licence fees that meet the
licence fee thresholds, and must have an eligible
television component and accompanying multi-
platform content that meets certain criteria.

The eligibility requirements are as follows:

• Projects must receive eligible licence fees that

pass the fee thresholds

• Final control of the applicant and the project,

and 51% of the applicant ownership and project
copyright must be retained by a producer that is
First Nations, Inuit, or Métis.

* The project must meet the eligibility requirements

for Indigenous ownership and Canadian production
company or broadcaster requirements.

Producing in Canada • 35
Diverse Languages before the earliest of either (i) the first day of official
preparation for principal photography of the project
Program or upon other use of the script; or, (ii) the transfer,
sale, assignment, or other disposition of the script.
This Convergent program supports productions
reflecting Canadian diversity by funding projects in Eligible projects submitted must be new projects
languages other than English, French, or Indigenous- that have not received any previous CMF funding.
Canadian languages. Funding is allocated according Projects that receive funding through this Program,
to a selective process using an evaluation grid. however, may subsequently be submitted to CMF
Development and Production Programs.
Amount of contribution
Amount of contribution
This program may provide a mix of licence fee
top-ups (non-recoupable) and equity investments The maximum contribution shall be the lesser of 84%
(recoupable) according to a set formula. The first of the eligible costs or $35,000.
CMF contribution to the project will be in the form
of a licence fee top-up, to a maximum of 20% of the POV Program
project’s eligible costs. Amounts in excess of this
maximum will be in the form of an equity investment. This Convergent Program is designed to encourage
The CMF considers an eligible equity investment one-off point of view documentary production.
request of less than CA$100,000 to be too small for Projects must be English- or French-language one-
equity participation. Such requests will automatically off Auteur Point of View/Creative Documentaries.
be converted to a licence fee top-up. The Program may provide a mix of licence fee
top-ups (non-recoupable) and equity investments
The maximum contribution will be the lesser of 49% (recoupable) according to a set formula.
of the project’s eligible costs or CA$200,000.
Projects seeking production-stage funding must have
Beginning in 2023-2024, reasonable costs related to a minimum financing commitment from an eligible
environmentally sustainable activities, practices and Canadian third-party in their application.
personnel will be funded.
The first CMF contribution will be in the form of a
For audiovisual treaty co-productions, the CMF licence fee top-up, which may reach a maximum
maximum contribution for the project will be of 20% of eligible costs. Amounts in excess of 20%
calculated on the lesser of the eligible costs of the of eligible costs will be in the form of an equity
Canadian portion of the project’s global budget investment up to 29% of eligible costs. Equity
and the eligible costs of the Canadian portion of investment requests of less than CA$100,000 is
the global final costs of the project, as certified by considered too small for equity participation, and
Telefilm Canada’s Business Affairs and Certification such requests will be automatically converted to a
Department. licence fee top-up.

Predevelopment Program Beginning in 2023-2024, reasonable costs related to

environmentally sustainable activities, practices and
Beginning in 2023-2024, general pre-development, personnel will be funded.
Indigenous Program Pre-development and the Pilot
Program for Racialized Communities Predevelopment Amount of contribution
will use the same guidelines.
The maximum contribution for this program is the
This Convergent Program allocates funding to lesser of 49% of the eligible costs or CA$400,000.
projects at the beginning of a project’s creative Funding offered through this Program may be affected
process. Applicants receive non-interest bearing by funds offered through other CMF Programs.
advances, 100% of which must be repaid on or

36 • Producing in Canada
International co-production CMF-Quebecor Fund Intellectual
and co-development incentives Properties Intended for
The CMF is creating innovative solutions to support International Markets Production
the co-production and co-development of content Support Program
with international partners. The CMF partners with
funding organizations in other countries to develop This Convergent program is a collaboration
matching funds to support the creation of innovative between the CMF and the Quebecor Fund to
projects that have at least one Canadian and one provide additional funding to live-action French-
international producer. language drama and documentary productions
created by Quebec-based production companies to
CMF-Quebecor Fund Export facilitate these projects entry into the international
marketplace.
Assistance Program Partnership
Amount of contribution
This convergent program is a partnership between
the CMF and the Quebecor Fund’s Export Assistance The maximum contribution provided to each project
Program (“EXAP”) to fund Export initiatives of shall be the lesser of the following:
audiovisual content intended for foreign markets by
Drama series:
Quebec-based production companies. The program
promotes content development for international • CA$300,000
markets, increases the volume of exports, and grows
both the reach and the revenue of Quebec-based • 6% of the portion of eligible costs related to the
producers. Projects go through a selective process national market version of the project
relying on the expertise of Quebecor Fund evaluators.
and
The program provides a recoupable investment
• 75% of the portion of eligible costs related to
repayable on terms negotiated between the
the increase in investment made by financial
applicant, Quebecor Fund and the CMF on a case-by-
participants to assist the project on the
case basis.
international market
Amount of Contribution
Documentary series:
The combined maximum contribution will be the
• CA$300,000
lesser of 40% of the project’s costs or $300,000.
• 20% of the portion of national eligible costs

and

• 75% of the portion of international eligible costs

Producing in Canada • 37
CMF-SODEC Predevelopment $100,000 too small for equity participation. Such
requests will be automatically converted to a licence
Program for Television Series fee top-up. Applicants should note that if a project is
Based on Literary Adaptations accessing funds between multiple CMF Programs,
the license fee top-up/equity investment division will
This Convergent program is a collaboration be applied to the project’s entire budget according
between the CMF and SODEC, and supports to the same maximum contribution percentages
the predevelopment of French-language fiction, noted above. Funding offered under this Program
documentary, and animated series for children and may be affected by funds offered through other CMF
youth based on adaptations of Quebec literary works. programs.
It allows companies to mobilize the expertise needed
to pre-develop one or more projects that have not yet Amount of contribution - development and pre-
received support from a broadcaster, distributor, or development
development financing, and facilitates the financial
Beginning in 2023-2024, all pre-development and
commitment of partners in the subsequent stages of
development funding have been consolidated into
development and production.
separate guidelines.
Amount of contribution
Amount of contribution - production
The amount of contribution can reach a maximum
For projects seeking production funding, either
of CA$50,000 per project, not exceeding 75% of the
the screenwriter or the director of the television
eligible expenses in the pre-development budget.
component must be a member of a Racialized
The applicant must assume at least 25% of the total
Community. If the television component is episodic,
project budget, including a minimum of 10% of this in
then this requirement applies to every episode of the
the form of monetary investment.
television component.

Pilot Program for Racialized All projects must meet the licence fee threshold rules
Communities and have funding confirmed by December 7th, 2023.

The maximum contribution shall be the lesser of 60%

This Convergent Program recognizes the historic
of the project’s eligible costs or the following amounts
barriers members of racialized communities face
(depending on the applicable genre):
and is designed to support the growth of English-
and French-language audiovisual productions from • drama and animation: $750,000
production companies owned and controlled by
Black people and people of colour. To make funding • documentary, variety and performing arts and
decisions, the CMF will rely on a jury made up of children & youth: $550,000
members from Racialized Communities and projects
will be selected using an evaluation grid.

Projects seeking production-stage funding must have

a minimum financing commitment from an eligible
Canadian third-party in their application to the CMF.

Projects may receive a mix of license fee top-

ups (non-recoupable) and equity investments
(recoupable) according to a set formula. The first
CMF contribution to the project will be in the form
of a licence fee top-up, to a maximum of 40% of the
eligible costs. Amounts in excess of this maximum will
be in the form of an equity investment, to a maximum
of 60% of eligible costs, license fee top-up and
equity investments combined. The CMF considers
an eligible equity investment request of less than

38 • Producing in Canada
Versioning Program
This Convergent Program is designed to both
increase the reach of existing programming to
Canadians through language versioning, and increase
the revenue earned by Canadian producers through
national and international sales. Assistance will be
provided in the form of a non-repayable contribution.
Applicants may apply with a maximum of 5
applications in the Versioning Program.

Amount of contribution

The maximum contribution provided by the CMF shall

be the lesser of 75% of the television component’s
eligible costs or the amount stated below organized
by genre:

• Drama

• Children’s & Youth

• Animation

• Documentary

• Variety and performing arts

The maximum contribution provided by the CMF

shall be 75% of the digital media component’s
eligible costs.

Producing in Canada • 39
Telefilm Canada • The individual lead producer of the applicant
company must have received one of the
Telefilm’s mandate is “to foster and promote following production credits in the previous works
the development of the audiovisual industry in considered for the applicant’s eligibility: producer
Canada”, and makes financing available through its or executive producer
Development Program and Production Program.
• Telefilm will relate only to the first release of a
Development Program work to determine if it was released during the
qualifying dates
The Development Program is aimed at supporting
the development of eligible Canadian feature films • All projects must be written in English, French,
and is intended for Canadian production companies or in an Indigenous language and intended to
involved in the production of feature films in Canada. be produced or completed in these languages.
It is made up of four streams: Note that projects intended to be produced or
completed in a language other than English,
• Prequalified Stream
French or in an Indigenous language for artistic
•  eneral Stream (formally known as the Selective
G imperatives are also eligible
Stream)
• All projects must be written by
• Indigenous Stream
Canadian screenwriters
• Stream for Black and People of Colour
• All projects must be intended to be Canadian
Under the Development Program, Telefilm’s financial
i.e., either (i) certified by CAVCO as a “Canadian
participation takes the form of an advance repayable
film or video production” with a minimum of
in accordance with the terms of the contract between
8 out of 10 points or the prorated equivalent;
Telefilm and the applicant, usually on the earliest
or, (ii) recognized as an Audiovisual Treaty Co-
of the following dates: the first day of filming (or
production by the Minister of Canadian Heritage
any other use of the script), or the date of the sale,
assignment, or other disposition of the rights to a • All projects must be intended to be theatrically
project. Telefilm’s minimum financial participation in released and eligible for production funding
individual projects is CA$15,000 and may be up to under Telefilm’s Production Program,
100% of the budget for the selected development Theatrical Documentary Program,
stage, subject to caps outlined below. Applicants can or Talent to Watch Program
only apply once a year and to only one stream even if
they are eligible to more than one. • All projects must comply with the Canadian
Association of Broadcasters Code of Ethics
Eligibility requirements (CAB) and with all other programming standards
enforced by the CAB or the CRTC, and not contain
• Applicants must be a Canadian feature film
any element that is an offence under the Criminal
production company
Code, is libellous or in any other way unlawful
• The head office of all applicants must
• Projects cannot have any outstanding deliverables
be in Canada
relating to a previous development contract
• Production company must carry out their with Telefilm
activities in Canada
• Eligible costs are those Canadian costs (with
• All applicants must be Canadian-controlled some exceptions) that are directly associated
corporations, as determined under the with the development stage of the project. Note
Investment Canada Act that eligible development costs must include
scriptwriting fees, but for animation projects,
• Must have at least a 20% share in the performance scriptwriting fees are not mandatory expenses for
ratio of the previous works considered for their second and subsequent drafts
eligibility, as established at time of contract if the
work was funded by Telefilm in production. If not, • All projects must be under the financial and
Telefilm will consider copyright share creative control of the applicants, which must

40 • Producing in Canada
 hold all the exclusive rights and options, for at Indigenous Stream
least 24 months, necessary for the adaptation of
the original work or concept (if applicable) and for Development funding is selectively decided for
the full and complete worldwide exploitation of eligible Canadian companies. Projects are evaluated
the script and production by advisory committees based on evaluation criteria
and ranked using an evaluation grid. The maximum
Prequalified Stream amount of contribution under this Stream is $37,500
and 1 project is permitted per application.
Under this Stream, development funding is automatic
for 125 eligible Canadian companies with a total Eligibility requirements are the same, with the
performance ratio ranking among the highest ones, necessary changes, as the Black and People of
subject to linguistic and regional splits ranking. Colour stream. See the requirements below.

Amount of contribution Stream for Black and People of Colour

• Tier A: $125,000 and a maximum of 5 projects is Development funding is selectively decided for
permitted per application eligible Canadian companies. Projects are evaluated
by advisory committees based on evaluation criteria
• Tier B: $75,000 and a maximum of 3 projects is
and ranked using an evaluation grid. The maximum
permitted per application
amount of contribution under this Stream is $37,500
• Tier C: $37,500 and a maximum of 1 project is and 1 project is permitted per application.
permitted per application
Eligibility Requirements for Indigenous and
General Stream Black/POC Streams

Development funding is selectively decided for eligible • All applicants must be production companies that
Canadian companies. Projects are evaluated by are majority-owned and controlled by Indigenous
advisory committees based on evaluation criteria and or Black persons and/or People of Colour
ranked using an evaluation grid. The maximum amount
• Applicants must have received producer or co-
of contribution under this Stream is $37,500 and 1
producer credit with at least one of the following:
project is permitted per application.
(i) a Canadian fictional or documentary feature
Eligibility requirements film that was released theatrically or premiered at
a Qualifying Festival; (ii) a Canadian short film that
• Applicants must have produced at least one was screened at a Qualifying Festival; or (iii) one
Canadian fictional or documentary feature film hour of Canadian television
and received credit as a producer or co-producer
• Projects must be considered “Canadian” i.e., been
• The film must have been released theatrically, certified by CAVCO as a “Canadian film or video
premiered at a Qualifying Festival, funded production with a minimum of 6 out of 10 points
through the Talent to Watch program and or the prorated equivalent or been recognized
released digitally, or released digitally due to the as an Audiovisual Treaty Co-production by the
COVID-19 pandemic between March 1, 2020 and Minister of Canadian Heritage
June 30, 2022
• All the key creative personnel (i.e., producer(s),
• Projects must be considered “Canadian” i.e., screenwriter(s), and, at the packaging phase,
they have either (i) been certified by CAVCO director(s)) must be Indigenous or Black and/or
as a “Canadian film or video production” with a People of Colour
minimum of 8 out of 10 points or the prorated
equivalent; or, (ii) have been recognized as an • All projects must be under the financial and
Audiovisual Treaty Co-production by the Minister creative control of Indigenous or Black and/or
of Canadian Heritage People of Colour

Producing in Canada • 41
Production Program Applicant eligibility requirements

This program supports Canadian production • Must be a Canadian-controlled corporation as

companies at the production and/or post-production determined under the Investment Canada Act
stage of their feature film project(s). Generally, the
• Head office must be in Canada and must carry
form of Telefilm’s financial participation will vary
out its activities in Canada
depending on the total project budget and, in certain
scenarios, the applicant’s choice from among the • Must operate as an audiovisual production
following options: company
• For projects with budgets under $2.5 million and • Producers and other key production personnel
a Telefilim financial participation of no more than exercising creative and financial control over the
$500,000 choice between a non-repayable project must be Canadian citizens or permanent
contribution or an equity investment repayable at residents (unless the project is an audiovisual
a rate of 10% of the applicant’s entitlement to the treaty co-production)
production revenues, for a period of two years
from the starting date of the project’s commercial • Broadcaster-affiliated production companies
exploitation based outside of Quebec that meet the basic
eligibility criteria are eligible to apply
• For projects with budgets under $2.5 million
and a Telefilm financial participation of more Project eligibility requirements
than $500,000: a choice between a repayable
• Must be a feature length (at least 75 minutes
advance or a repayable equity investment
long), fictional, and be produced or completed
• For projects with budgets of CA$2.5 million and primarily in French, English, an Indigenous
above: choice between a repayable advance or a language, or, for artistic imperatives, in another
repayable equity investment language

Note that should Telefilm’s financial participation • Must be aimed primarily at the Canadian
be provided in the form of an equity investment, no theatrical market while maximizing distribution on
matter the level of the project’s budget, Telefilm will alternate platforms
acquire a proportionate share of the copyright in
• Must be under the ownership of the Canadian
the production. It is important to additionally note
applicant(s)
that the applicant’s choice of the form of Telefilm’s
financing may affect the amount of federal or • Must be produced by a producer with relevant
provincial tax credits that the producer is eligible to audiovisual industry experience
receive in connection with the production. Under
this Program, if Telefilm’s financial participation in the • Copyright must be owned by Canadians (unless
project exceeds CA$250,000, Telefilm shall receive, the project is an audiovisual treaty co-production)
once all financial contributions have been recouped,
• Must be under the financial, creative, and
a share of production revenues equal to 50% of its
distribution control of the eligible applicant(s), as
proportionate share of total equity, in perpetuity.
well as all the rights and options necessary for the
full and complete exploitation of the project must
be held by the eligible applicant(s)

• Must be solely written and directed by Canadian

citizens or permanent residents (unless the
project is an audiovisual treaty co-production)

• Budget must be no less than CA$250,000

42 • Producing in Canada
• If a post-production application, must be Amount of contribution
submitted following rough assembly and prior to
picture-lock Telefilm’s financing may not exceed:

• if a project is budgeted at CA$3.5 million or more, • For projects whose Canadian budget is less
the project must have a firm commitment from than CA$1.5 million: the lesser of 49% of eligible
an eligible Canadian distribution company for Canadian production costs or CA$500,000
theatrical release in Canada within one year of • For projects whose Canadian budget is between
completion and delivery. Note that on a case-by- CA$1.5 million and $3.5 million: one third of
case basis, Telefilm reserves the right to accept eligible Canadian production costs
a firm written commitment from a non-eligible
Canadian distribution company • For projects whose Canadian budget is greater
than CA$3.5 million:
• With respect to Canadian content certification,
upon completion be either: (i) certified by CAVCO • The lesser of 49% of eligible Canadian
as a “Canadian film or video production” with a production costs or CA$3.5 million for
minimum of 8 out of 10 points; or, (ii) recognized French-language projects
as an audiovisual treaty co-production by the
• The lesser of 49% of eligible Canadian
Minister of Canadian Heritage
production costs or CA$4 million for projects
• The project must not fall under Telefilm’s list of in other languages
the types of projects that are ineligible
Telefilm typically aims for its participation to be
• Projects that are recognized as audiovisual treaty approximately one third of eligible Canadian
co-productions are eligible to apply, but are not production costs, however, Telefilm may, in its
guaranteed funding discretion, exceed the aforementioned caps in certain
situations where there is demonstrated need or
• All projects funded by Telefilm must be made recommend different amounts than requested.
available on digital platforms no later than 2 years
after their theatrical exploitation or in the year
following their completion if a theatrical release is
not required

• All projects must be available in both official

languages, in either subtitled or dubbed versions

Producing in Canada • 43
Greenlight Financing Indigenous Stream

Greenlight Pre-Production Advances Telefilm sets aside funds for projects that are created,
owned, and controlled by Canadian Indigenous
This is available at Telefilm’s discretion for projects filmmakers in order to increase the diversity of
budgeted at $3.5 million or more that have already the projects it supports and to support Canadian
received a commitment letter from Telefilm for Indigenous creators who face a variety of unique
financing in the amount of at least $1.5 million. barriers in the audiovisual industry.
Applicants must have an eligible distributor attached.
Note that Telefilm’s greenlight advance financing Eligibility requirements
is not in addition to Telefilm’s offer of production
In addition to the aforementioned Applicant eligibility
financing; for applicants in receipt of a greenlight
requirements and Project eligibility requirements,
advance, the amount will be included as part of
applicant companies applying for funding under this
Telefilm’s total financial commitment to a production.
Stream will have to show that they meet the following:
Amount of contribution
• At least 51% of the project’s copyright is held
Telefilm greenlight financial participation will generally by a production company majority-owned and
not exceed 80% of eligible costs, up to a maximum controlled by Indigenous persons
of CA$250,000 and will be provided as an advance
• The project is under the creative, financial, and
against Telefilm’s production financing. Telefilm may,
distribution control of Indigenous persons
however, at its discretion, consider granting a higher
greenlight pre-production advance if the production • Two-thirds of the key creative team members
financing is complex and time is of the essence to (producer(s), director(s) and screenwriter(s)) must
incur certain expenses. In such case, the greenlight be Indigenous
financial participation may not exceed the lesser of:
Projects that are shooting in a remote location or
• 80% of eligible costs implementing capacity-building programs, are eligible
to apply for an additional CA$100,000 towards the
• CA$500,000
remote location shoot and/or capacity-building
• 25% of the amount of financial participation program. However, the total Telefilm funding shall
indicated in the production commitment letter not exceed 49% of the eligible Canadian production
costs. Applicants who qualify under this Stream are
not required to submit projects under this Stream
and may choose to submit to any other Stream under
which they are eligible.

44 • Producing in Canada
The following are additional funding programs
available from Telefilm:

• Eurimages

• Export Assistance Program

• Talent to Watch Program

• Theatrical Documentary Program

• Marketing Program

• Promotion Program

• International Promotion Program

• Theatrical Exhibition Program

For information on these programs, please visit

[Link]

Producing in Canada • 45
 Canada is a party
to co-production
treaties with more
than 50 countries.

Co-production
treaties pool resources
to reduce production
risks and simplifies
procedures between
participating countries.

46 • Producing in Canada
Official co-productions

Canada is a party to co-production treaties with more entry and exit of personnel and equipment from
than 50 countries, which notably exclude the United participating countries. Such agreements also specify
States. For a current list of co-production treaties the language of the production and co-producers,
between Canada and other countries, visit [Link]. and stipulate that all services are to be provided by
nationals of the participating countries. In general, the
Co-production treaties are designed to assist production must be filmed in one or more of the co-
Canadian producers and their counterparts in one producers’ countries. However, approval to film in a
or more other countries collaborate on a production. third-party country is occasionally granted. Approval
This pooling of the creative, technical and financial may also be obtained to use an actor who is not a
resources of both producers helps to reduce the national of any of the co-producers’ countries.
various risks of production and enhances the ability
of the co-producers to finance and proceed with Generally, co-producers share responsibility for
the production. Co-production treaties also simplify the exploitation of the completed production.
administrative and regulatory procedures such that Exploitation within a co-producer’s home country
goods and equipment used for production can flow is the responsibility of that producer, and proceeds
easily between the participating countries. from such exploitation generally belong to that
co-producer. Receipts from exploitation in other
When a production is made in accordance with countries are usually split between co-producers in
a co-production treaty, the production gains proportion to their contributions to the production
“official co-production” status. In Canada, Telefilm budget. Typically, the copyright is shared, while
Canada evaluates and recommends projects likely domestic use of the copyright is controlled by the
to be recognized by the Department of Canadian respective co-producers.
Heritage as official co-productions. As an official co-
production, the production is treated as a “national For an international co-production to gain official co-
production” of each co-producing country, and is production status, a co-production must be approved
subsequently eligible for government incentives and by the Co-Production office of Telefilm Canada. The
tax benefits in both countries on a proportionate approval process begins when the co-production
basis. In Canada, an official co-production should agreement and supporting material are submitted to
qualify for treatment as a Canadian Film or Video Telefilm Canada for a “Preliminary Recommendation.”
Production for the purposes of the CPTC, and as a This recommendation will be granted if the production
Canadian program for the purposes of the CRTC. For appears to comply with all aspects of the relevant
example, if the Canadian co-producer is responsible co-production treaty. If the production is financed
for 60 percent of the co-production budget, then and made in accordance with the co-production
60 percent of the budget is generally eligible for agreement, Telefilm Canada will generally grant a
Canadian subsidies and the CPTC. The production “Final Recommendation.” Telefilm’s recommendation
may also be eligible for benefits under provincial will be communicated to CAVCO for the purposes
programs, and, as a Canadian program, may be able of certification and eligibility for the CPTC (and other
to command higher license fees from broadcasters. It analogous credits). If a production meets the terms of
is important to note that these are general rules, and the treaty, but does not meet the requirements of the
the level and type of government support available CPTC, or if the producer does not wish to apply for
are subject to the terms of the particular treaty and the CPTC, the producer may request an attestation of
the application of specific provincial rules. co-production status instead of the CPTC certificate.
This request may also be made through CAVCO. Any
Co-production agreements generally specify changes to a project may result in the loss of official
the minimum financial, creative and technical co-production status. Consequently, all changes are
participation required by each party, conditions for subject to review by Telefilm.
participation by third parties, and procedures for
Producing in Canada • 47
Telefilm Canada certification • Co-production must be produced jointly with an
eligible producer in a country that has signed an
for co‑productions audiovisual co-production treaty with Canada
Co-productions will generally be certified by Telefilm • Production and post-production of the project
Canada if all of the following criteria are satisfied: must be carried out in co-producing countries
(subject to the provisions of each treaty)
• Eligible Canadian applicants must have its
• Financial, creative, and technical contribution, and headquarters and carry out its activities in Canada
the level of expenditure must all be in proportion
of each co-producing country. For example, if the Eligible projects
project is 40% Canadian, it is expected that 40% of
The following applies to Belgium (Belgium
the budget be spent in Canada
Communities), China, France, India, Ireland, Jordan,
• The Canadian financing covers the cost of Luxembourg, New Zealand, and Ukraine:
Canadian elements, which can never be lower
than the minimum applicable treaty requirement. • A film intended for theatrical release, television
The minimum financial participation of each broadcast (including VOD), or DVD distribution,
country varies from 15 to 30 percent, depending which may be accompanied by one or more online
on the treaty. video works or applications.

• All personnel hired to work on an official co- • A television production intended for television
production must come from the co-producing broadcast (including VOD) or DVD distribution,
countries. The producer, crew and personnel which may be accompanied by one or more online
exercising control over the creative, financial and video works or applications.
technical aspects of the Canadian share of the • An online video work or application that engages the
project must be Canadian citizens or permanent user in a storytelling experience, and is designed for
residents. and made available to the public by way of a digital
• For Belgium (Belgium Communities), China, France, network, including Internet and mobile. These include
India, Ireland, Jordan, Luxembourg, New Zealand, • Original linear content, including films, TV
and Ukraine, the sharing of copyright and revenues, productions, webisodes made for consumption
the sharing of copyright and revenues must be, online; and
in principle, proportional to the percentage of
financial participation of each of the co-producers, • Original non-linear content, including immersive
and may not be less than the minimum percentage websites, mobile content and applications.
set out in the applicable co-production treaty. For • The Canadian producer must be able to
all other countries, subject to the applicable treaty’s demonstrate that a commitment has been
provisions, the Canadian producer must retain a fair obtained for the distribution or broadcast of
share of the revenues collected from all territories, the project in Canada and in the territory of
including those from the co-producing country or the co-producing partner. Where a co-producing
countries. After recoupment of production costs, partner is unable to obtain such a commitment
the Canadian producer’s revenue share should in their territory, a distribution or broadcast
be at least equivalent to the applicable treaty’s commitment in a territory other than the co-
minimum financial contribution, or to the Canadian producing territory can be an acceptable
financial contribution in the co-production, alternative, with the mutual written consent of the
whichever is greater. authorities of the co-producing territory.
• For co-productions with a European Union member
country, the director(s) and scriptwriter(s) must be
citizens or permanent residents of Canada or a
European Union member country.

48 • Producing in Canada
The following applies to all other countries: Inter-provincial co-productions

• An audiovisual work (defined as a film and/or The guidelines for inter-provincial co-productions
television production of any length or genre, are designed to assist Canadian producers in one or
including live action or animation production, more other provinces to collaborate on a production,
which complies with the provisions of the and access tax incentives and government financing
audiovisual industry in each co-producing country) in their respective province. Similar to international
that meets the requirements and conditions in the co-productions, inter-provincial co-productions
applicable co-production treaty or established by facilitate the financial and creative collaboration
the authorities between producers from various provinces. However,
guidelines for inter-provincial co-productions tend
• A project may be originally conceived for any type to be less complex than those set out in various
of work provided that the creative, financial, and international co-production treaties. Still, there may
technical control remains vested with the co- be various requirements dealing with ownership
producers issues and minimum expenditures in order to qualify
• A project previously conceived in a non-co- for some provincial tax credits.
producing country may be eligible subject to the
co-producer(s) demonstrating that, since acquiring
the underlying rights, they have substantially
developed and scripted the project. The co-
producers must be fully and directly responsible
for the development and implementation of the
creative, artistic, technical, and financial elements,
and all credited scriptwriters must, for Canada,
be citizens or permanent residents, and for other
co-producing countries, be citizens or residents
as required by the authorities of the co-producing
countries

• Projects conceived, developed or scripted by

professionals from non-co-producing countries
and then entrusted to the co-producers for
financing and shooting are not eligible to be
recognized as treaty co-productions

• Subject to the applicable treaty’s provisions, all

exploitation and distribution rights in the Canadian
market must be under the effective control of the
Canadian producer or a Canadian distributor/
broadcaster

Producing in Canada • 49
50 • Producing in Canada
Private incentives
There are various private programming funds available to assist in the financing of film and television program
development, production and/or distribution. Similar to government incentives, these private incentives
support distinctively Canadian-content productions and stimulate production in certain provinces. These
incentives are usually in the form of equity, loans or grants.

Information contacts for some of these programs are as follows:

Bell Fund Rogers Group of Funds

[Link] [Link]
info@[Link] rogersgroupoffunds@[Link]
416.977.8154 416.935.2526
Independent Production Fund Shaw Rocket Fund
[Link] [Link]
info@[Link] info@[Link]
416.977.8966 587.899.4517
Northern Ontario Heritage Fund Telus Fund
[Link] [Link]
AskNOHFC@[Link] info@[Link]
1.800.461.8329 1.604.317.0684

Producing in Canada • 51
Alberta government
incentive programs

Film and Television Tax Credit

(FTTC) CA$868 Million
The FTTC offers a refundable Alberta tax credit Total volume of film and
on eligible Alberta production and labour costs to
corporations that produce films, television series,
television production in Alberta,
and other eligible screen-based productions in the Saskatchewan, Manitoba,
province. Applicants may apply for either a 22% or
Yukon, Nunavut, and Northwest
30% tax credit based on the eligibility criteria.
Territories in 2021/2022
Previously, the maximum tax credit available to
a single production was $10 million, however, as - Source: Profile 2022, CMPA
announced on March 26, 2021, Alberta’s government
removed the FTTC’s $10 million per project cap. • Principal photography must not have started before
an application is submitted to the program
Eligibility of production
• The production must be completed, and final
To be eligible for either level of the FTTC, a
deliverables provided to the program, within 42
production must:
months of the date of issuance of the Authorization
• Have total production costs of CA$499,999 (before Letter
GST) or greater; In addition to the basic eligibility requirements above,
• Not have received funding from the Alberta productions applying for a 30% tax credit must also:
Production Grant or the Alberta Screen-Based
• Be owned (at least 50%) by Alberta-based
Production Grant;
shareholders; this includes proportionate financial
• Be a new production – repackaging of previously control and proportionate profit participation (for
completed productions is not permitted under the information on completing the calculation, please
program and will be deemed ineligible; refer to guidelines for the FTTC here);

• Begin principal photography no later than six • Have at least one Alberta-based producer with a
months after an Authorization Letter is issued. single card credit recognition;

52 • Producing in Canada
• Have the production’s copyright held, at least in International treaty co-productions
part, by an Alberta-based individual, partnership
or corporation at the time of application and for a International treaty co-productions may be eligible for
minimum of 10 years following the completion of a 30% tax credit certificate if they:
production; provided a transfer of the production’s • Have at least one Alberta-based producer with a
copyright during this holding period is permitted, single card credit recognition;
as long as the copyright remains owned, at least in
part, by an Alberta-based individual, partnership, • Spend at least 60% of the total production costs in
or corporation. Failure to comply with this holding Alberta or spend at least 70% of the total production
requirement may result in the tax credit certificate salary or wages on Alberta-based individuals.
being revoked and a new tax credit certificate Eligibility of applicant
issued at the 22% rate.
To be eligible for the FTTC, a corporation must:
• Spend at least 60% of the total production costs
in Alberta OR spend at least 70% of the total • Be primarily engaged in film, television and/or
production salary or wages on Alberta-based digital media production;
individuals.
• Be incorporated in Alberta under the Business
In addition to the foregoing a production must Corporations Act, registered as an extra-provincial
provide written evidence of (i) a commercial license company in Alberta and/or continued as an Alberta
agreement for the production from a third party company through a Certificate of Continuance;
broadcaster or distributor (where no commercial and
license agreement exists (e.g., studio-financed
• Not be exempt from paying taxes under the
productions, or productions by streaming providers),
Alberta Corporate Tax Act (or be controlled by
applicants may provide a letter on studio letterhead
a corporation that is).
signed by a studio executive confirming no such
agreement exists and that the production will be FTTC application process
available through their platform) and (ii) confirmed
Applicants to the program may be submitted by an
financing for 50% of the production’s budget
ineligible parent corporation on behalf of an eligible
(excluding Government of Alberta funding); provided
corporation that will be established in the future.
that applicant productions that are fully studio-
Following a successful evaluation, applicants will
financed or fully financed by streaming providers
receive an Authorization Letter advising them of the
may provide a letter on studio letterhead signed by
maximum tax credit certificate that they are eligible
a studio executive confirming that the production is
to receive. An Authorization Letter will only be issued
fully funded (100%) by the studio/streamer provider
to an eligible corporation that meets all of the criteria
and that no other financing exists.
above. The maximum tax credit certificate amount
Certain genres of production and platforms are NOT will be calculated by multiplying the applicable tax
eligible for funding (similar to those genres excluded credit rate by the estimated eligible production costs
by CAVCO), but with the addition of video games and verified by the program. Applicants must respond
a production for which financial support would in the within 14 days of receiving the Authorization Letter to
opinion of the Minister, be contrary to public policy. indicate their acceptance of same and to provide any
documentation requested in the letter.

Producing in Canada • 53
Unsuccessful applicants are permitted to reapply Eligibility of production
once within 12 months of receiving notification that
their initial application was declined, even if they The grant will be available to Albertan productions that
have already begun principal photography on the are not of an ineligible genre and:
production. • Have total budgets under CA$499,000 (Alberta
After completion of the production, the applicant who has and Non-Alberta Costs) and have a minimum
received an Authorization Letter may request a tax credit eligible Alberta spend in excess of CA$50,000;
upon submission of, among other things, a final report • Applicant companies must: be incorporated and
form and audited financial statement of production costs. in good standing with the Alberta Corporate
Once a tax credit certificate is granted to the applicant, Registry; have a minimum of 51% Alberta
the applicant files same as part of its taxes. ownership; be primarily engaged in film, television
and/or digital media production; be in good
Alberta Made Production standing in all respects with the Alberta Media
Grant (AMPG) Fund; and, not be a broadcaster or distributor for
the purposes of the project;
General description
• Are new and not a repackaged or previously
The AMPG was created to support smaller budget completed project;
productions in Alberta. This program contributes
• Creative material must be owned 51 per cent or
towards the government’s goal of growing Alberta’s
more by the applicant company who must have the
cultural industries. In recognizing that small-budget
rights to develop and exploit the project;
productions have different funding needs than large-
budget productions, the grant provides funding to help • Has a fully executed commercial license or
productions manage their immediate cash flow needs distribution agreement through a non-related third
via an interim payment. party company;

The AMPG is a competitive program with a limited • Has a minimum of 50 per cent secured financing
budget and offers a 25% grant on all eligible Alberta (including projected AMPG funds);
labour and non-labour expenses to a maximum of • New in 2023, applicants are no longer required to
CA$125,000. obtain Error and Omissions Insurance to be eligible
for the AMPG. The risk of not having the proper
The AMPG has two intake windows: January 2 to 16 and
insurance is the applicant’s alone;
July 2 to 16. Grant funds are paid in two installments
based upon the completion of milestones. The • Principal photography commenced no more than
AMPG also allows a bulk overhead deduction equal 180 days prior to the opening of the application
to 12% of the costs listed in the B + C portions of the intake window or will commence within 180 days
budget. There is no limit to the number of projects following notification of grant approval; and
an applicant and parent company or affiliates can
• Are a minimum length of 22 minutes (shorts may
submit per window; however, should the program be
be considered eligible at the Minister’s discretion).
oversubscribed, the Minister reserves the right to limit
the number of approvals granted to an applicant or
its affiliates, regardless of scoring, in order to fund a
diverse portfolio of projects.

Projects that have received funding from the Film and

Television Tax Credit Program, administered through
the Ministry of Jobs, Economy and Innovation, are
not eligible to apply for the Alberta Made Production
Grant program.

Beginning July 2023, applicants may be eligible to

receive a top-up of up to CA$35,000 or to a maximum
of 7% of the total Alberta expenses for activities related
to on-set training, job shadowing, and mentorship.
54 • Producing in Canada
Post-Production, Visual Effects Eligibility of applicant:

and Digital Animation Grant • The organization must be incorporated in Alberta

under the Business Corporation Act, or registered
(PPG) as an extra-provincial company in Alberta and be
The PPG, under the Alberta Media Fund (AMF), in good standing with the Corporate Registry or
provides funding to support Alberta companies that operate as a sole proprietorship with a registered
use Alberta labour on post-production, visual effects, trade name in Alberta
and digital animation projects. • All applicants must be in good standing in
The PPG offers a grant of 18% of eligible Albertan all respects with funding received from the
invoiced labour for qualified projects. A grant of 12.5% Government of Alberta including the AMF
of the total eligible Alberta costs will be calculated, • The organization must be able to demonstrate that
which represents an industry standard invoice the organization provides services for arm’s length,
breakdown of 70% labour and 30% non-labour costs; third party organizations on a regular basis
an 18% grant on the 70% labour portion equates to a
Eligible projects include but are not limited to:
12.5% grant on the invoice total.
• Editing of video and audio
Applications are accepted until March 1 each year,
or when all funds for the budget year have been • Subtitling and closed-captioning
allocated. An applicant can submit an unlimited
• Creation and editing of visual and sound effects
number of applications, however the maximum
amount an organization or their affiliates can receive in • Digital animation
grant funding per budget year is CA$200,000. • Projects produced primarily for distribution to a
Applicants can claim for multiple projects in each public audience
application, but projects must be claimed separately • Projects that have been submitted to the AMF
within the application. Submissions with a combined within 60 days of the post-production end date,
total of eligible Alberta invoice values less than invoice date or signature date on the deal memo
CA$4,000 and a minimum per project value of less with a production company
than CA$500 in eligible costs will not be considered.
• Projects that have a minimum eligible invoice value
Multiple applications can be made throughout the year
of $500
as long as there is budget remaining.
Ineligible projects include but are not limited to:
Applications must be received within 60 calendar
days of completion of post-production, invoice • Productions that solicit funds
date or signature date on the deal memo signed by
• Mass reproduction of pre-recorded audio and
the production company. Projects with budgets in
video material on magnetic or optical media (such
excess of CA$150,000 and a deal memo signed with
as CDs or DVDs)
a production company may qualify to have funds
reserved; applications must be received within 60 • Archiving for corporate, institutional and
calendar days from signature date on the deal memo preservation purposes
and funds will not be granted until project completion.
• Pornography/adult entertainment
Grants to eligible recipients are calculated based on • Productions made for internal corporate use
a percentage of specific Albertan labour expenses
directly attributable to post-production, visual effects, • Productions where support would be considered
and/or digital animation services. contrary to public policy, including the promotion
of: hate against an identifiable group and
exploitation of sex, violence, horror or cruelty

Producing in Canada • 55
Alberta Project/Script will not be considered) and at least 30 broadcast
minutes in length. Projects that are not eligible for
Development Grant (PSDG). funding include: news, current events or public affairs
programming; talk shows; productions in respect
The PSDG, offered under the Alberta Media Fund
to a game or contest; sports events or activities;
(AMF), provides Alberta writers, directors, and
productions that solicit funds; reality tv; pornography/
producers with funding to help cover expenses
adult entertainment; advertising; console or online
related to the development of professional quality,
video games; software programming platforms; video
commercial-ready projects, and/or scripts.
distribution platforms or aggregators.
Applications must involve participation of both a writer
Eligible expenses include, but are not limited to: option
and producer (the same individual may fulfill both
fees for literary material; writer and producer fees; series
roles), and the producer must be an Alberta resident.
proposals; research or travel expenses; script consulting
The PSDG has two intake windows: January 1 to March 1
and editing fees; corporate overhead and legal fees;
and September 1 to October 16.
screenplay workshopping; demo reel and pitching
Applicants may apply for up to CA$55,000 per material. Capital items and expenses incurred prior to
project (or a total of CA$70,000 per parent company application submissions are not considered eligible.
with multiple projects) per fiscal year at the following
phases of development: Cultural Industry Grants (CIG)
• Pre-development: grant may not exceed 50% of The CIG, under the Alberta Media Fund (AMF), provides
the pre-development budget, to a maximum grant funding for projects and organizations involved in book
of CA$15,000 publishing, magazine publishing, sound recording,
and film production. The Organization Project Grant
• First draft: grant may not exceed 30% of the first
and the Support Organization Operating Grant are two
draft budget, to a maximum of CA$25,000
grants available under the CIG that apply to film and
• Final draft: grant may not exceed 30% of the final some screen-based projects.
draft budget, to a maximum of CA$15,000
The Organization Project Grant:
Applicants may apply for more than one phase
of development per submission. Grant recipients The Organization Project Grant assists Alberta-based
must have met all reporting requirements for each companies engaged in the production of books,
development phase in order to be eligible to apply for magazines, or sound recordings, as well as some
subsequent funding. screen-based projects. The grant may be used to
support projects in art production, training, career
Deferrals are not accepted in the pre-development development, marketing, and research. Organizations
phase. In the first/final draft phase, producer deferrals can apply for up to 100% of eligible expenses up to
can comprise a maximum of 20% of the first/final draft a maximum of CA$20,000; any unused portions of
budget. Writer deferrals will only be accepted if the the grant must be returned to the Government of
writer is a stakeholder in the company. Additionally, a Alberta. The application deadline is June 1 (extended
minimum of 15% third-party investment/financing is to the next working day if falls on a statutory holiday
required for first draft and final draft phases; producer or weekend).
investment may comprise the balance of the budget.
At the time of submission, applicants must provide Eligible film production companies must be primarily
evidence of 100% confirmed financing (which can engaged in film/video productions for public viewing
include anticipated AMF grant funding, other funders, and either will create or have created a film or video
producer investment, and third party financing). production available for public viewing that has
a running time, or combined times in the case of
Eligible organizations are those that are incorporated multiple productions, of at least 30 minutes. Eligible
in Alberta and are in good standing with the Corporate organizations must also be registered and in good
Registry and the AMF. standing with the appropriate legislation, must be
Eligible projects must be new productions based in Alberta (including the location of the head
(repackaging of previously completed projects office), and be majority owned by Alberta residents.

56 • Producing in Canada
Eligible projects must meet the criteria in one or more Recipients are required to submit a complete
of the following categories: art production; training and application and reporting materials by June 1 of each
career development; marketing; and/or research. year during their three-year application cycle. Any
unused portions of the grant must be returned to the
Projects considered ineligible are self-published,
Government of Alberta.
corporate or agency newsletters, and corporate video
productions. Eligible organizations must be in good standing with
the Alberta Corporate Registry, be based in Alberta
Eligible expenses include, but are not limited to:
(including the location of the head office), and support
transportation and accommodation; royalties or
organizations that produce books, magazines, sound
licenses; editing fees; administration and contract fees;
recordings or film production.
promotion and publicity; production.
Operating expenses eligible for funding include, but
Ineligible expenses include expenses that occur
are not limited to: administration, programming, pay
before the application date and those already covered
for permanent employees, artists and contractors,
under the Alberta Project/Script Grant or the Alberta
maintenance of equipment and fixed assets, and rent.
Foundation for the Arts.
Credit to the Government of Alberta for financial
The Support Organization Project Grant:
support must be acknowledged in any publicity
This grant provides support for the creative and prepared in relation to the organization’s activities. A
financial sustainability of Cultural Industry Support minimum reduction of not less than 10% will be applied
Organizations by assisting with annual operating and to the subsequent grant of any organization that does
programming expenses of eligible organizations. not satisfy the Government of Alberta recognition
Under this grant within the Alberta Media Fund (AMF), requirements.
certain organizations can apply for funding to support
the production of books, magazines, sound recordings Film and Video Individual
or film production in Alberta. The Alberta Culture and Project Funding
Status of Women designates eligibility to apply for this
grant to the following organizations: Offered through the Albert Foundation for the
Arts (AFA), this funding provides up to CA$15,000
• Alberta Magazine Publishers Association to support the development of individual Alberta
• Alberta Music Industry Association artists, arts administrators, or an ensemble of artists
by providing funding for a specific film and video
• Book Publishers Association of Alberta arts project. Applicants can apply for up to 100% of
• Alberta Media Production Industries Association eligible expenses that are directly related to carrying
out the proposed project.
The application deadline is June 1 (extended to the next
working day if falls on a statutory holiday or weekend), Applicants may submit only one application to
and intake opens 60 days prior to the deadline. the AFA each deadline across all disciplines,
and applications must be received prior to the
Funding is determined for a 3 year cycle, and grant
commencement of the project. Projects involving
calculations consist of 2 components:
more than one artist must be submitted by one
• A base amount of CA$50,000 for operating individual on behalf of the ensemble or group.
expenses; and,
Funding is to be used to support artistic activities in:
• Up to 50% of eligible expenses, over and above the art production, marketing, research, and training and
base amount career development. Grant funds must be returned
to the AFA if the project cannot be completed as
An expert panel will make funding recommendations
proposed. Additionally, any unused portions of
over and above the base amount to the department
funding must be returned to the AFA.
upon review and evaluation of certain criteria including
the balance between the four keystones of Access, Eligible film and video arts projects are independent
Capacity, Excellence, and Cultural Industry from The works in film and video produced by individual artists.
Spirit of Alberta. Eligible film genres include, but are not limited to:

Producing in Canada • 57
narrative shorts and features, experimental shorts, Ineligible expenses include, but are not limited to:
documentary, and animation. artistic activities or projects undertaken in order to
fulfill credit or thesis requirements; projects that are
Individual eligibility criteria: primarily commercial in nature.
• Must be a resident of Alberta for at least one full All members of an ensemble, collective, or
year before applying collaboration must meet the individual eligibility
• Must be in good standing with the AFA with no criteria. Principal artists cannot apply and/or receive
open or outstanding projects or reporting to apply; funding for multiple projects at the same time,
previous grant recipients must ensure all final whether as an individual or a member of various
reporting has been approved by the AFA before ensembles, collectives, or collaborations.
new applications are accepted
For a project to be eligible for AFA funding, the
• Applicants, including ensembles or collectives, applicant must have complete editorial and creative
must not be incorporated under either provincial or control over the proposed project and must retain at
federal legislation least 75% of copyright.
Eligible expenses include, but are not limited to: Whenever possible, recipients must acknowledge the
contracted artist and/or technician fees; production; AFA for financial support in any publicity prepared in
royalties; transportation and accomodiation; and relation to the project.
promotion and publicity.
British Columbia government
incentive programs

Creative BC administers the following tax credit programs:

Film Incentive BC (FIBC)
THE FIBC is a labour-based, refundable corporate
income tax credit. Production corporations must
apply to Creative BC to receive an eligibility and
completion certificate for their production. In order
to claim FIBC tax credits, production corporations
must file a corporate income tax return, along with
the certificates, with the CRA. The film and television
tax credits cannot be claimed if the British Columbia
production services tax credit is claimed for that
production. The program includes six initiatives:

Scriptwriting Tax Credit

This Scriptwriting Tax Credit (STC) is

a refundable film and television tax
credit that is 35 percent of eligible BC
scriptwriting expenditure paid to a BC-based
scriptwriter that are directly attributable
to the development of script material of a
production, incurred by a corporation either
after February 20, 2018 or 2 years before the CA$3.7 billion
principal photography start date (whichever is
later), and incurred before the end of the final Total volume of film and
television production
script stage of the production. A qualifying
production corporation must be eligible for
and claim the Film and Television Basic tax
credit in order to claim the STC. This incentive
in British Columbia in
must be accessed in conjunction with the
FIBC basic incentive.
2020/21.
- Source: Profile 2022, CMPA
Basic incentive

This tax credit is equal to 35 percent of

eligible British Columbia labour costs up to
a maximum of 60 percent of total eligible
production costs (excluding assistance).

Producing in Canada • 59
Regional incentive required and there is no proration based on principal
photography days. This incentive must be accessed
This tax credit is equal to 12.5 percent of qualified in conjunction with the FIBC basic incentive.
British Columbia labour costs, pro-rated by the
number of days of principal photography outside Training incentive
the designated Vancouver area, divided by the total
This tax credit is the lesser of 30 percent of trainee
number of days of principal photography in British
salaries or three percent of eligible British Columbia
Columbia. It assists production companies that
labour costs. To be eligible for the training incentive
shoot their productions outside of the designated
tax credit, a trainee must be a British Columbia-based
Vancouver area. To be eligible, the production must
individual registered in an approved training program.
have at least 5 principal photography days outside
This incentive must be accessed in conjunction with
the designated Vancouver area and over 50% of the
the FIBC basic incentive.
British Columbia principal photography days must
be outside the designated Vancouver area. For a Digital animation or visual effects
television series, this double threshold applies for a (DAVE) incentive
minimum of 3 episodes as a group (the ‘qualifying
episodes’) and this tax credit is further pro-rated This tax credit is equal to 16 percent of eligible
by the number of qualifying episodes to the total British Columbia labour costs incurred in making the
number of episodes. For animated productions, production, and which are directly attributable to
this tax credit is based on BC labour expenditure eligible digital animation or visual effects activities,
in respect of services rendered in BC outside the or post-production activities. This incentive
designated Vancouver area. This incentive must must be accessed in conjunction with the FIBC
be accessed in conjunction with the FIBC basic basic incentive.
incentive.
Eligibility requirements
Distant location regional incentive
• The production corporation claiming the tax
This tax credit is equal to 6% of qualified British credit must be a BC-based Canadian-controlled
Columbia labour costs. The distant location is that corporation.
part of BC that is not included within the area that
• The producer of the production must be a BC-
extends from the designated Vancouver area north,
based individual, who is Canadian.
up to and including Whistler, and east to include
Hope. For live action productions, qualified BC • More than 50 percent of the copyright of the
labour costs are prorated by the number of days of production must be owned by the BC-based
principal photography in BC within a prescribed area Canadian-controlled corporation.
to the total days of principal photography in BC. To • 75 percent of principal photography days (or
be eligible for this tax credit, the production must be key animation days for animated productions)
eligible for the Regional Tax Credit and have at least of the production must be done in BC (n/a
one principal photography day in a distant location. for documentaries).
For a television series, this requirement applies to
the qualifying episodes and the Distant Location Tax • The production must be Canadian content
Credit is further prorated by the number of qualifying (i.e., meet the minimum key creative point
episodes to the total number of episodes. For requirements).
animated productions, this tax credit is based on BC • A minimum of 75 percent of total production costs
labour expenditure in respect of services rendered must be spent on goods or services provided
in BC in a distant location; there is no minimum in British Columbia by BC-based individuals or
number or percentage of principal photography days companies. For documentaries, at least 75% of
60 • Producing in Canada
 total production costs must be paid to BC-based
individuals or corporations. In addition, a minimum
of 75 percent of post-production costs must be
paid in respect of post-production work carried out
in British Columbia.

• The production must be shown in Canada within

two years from completion of the production by a
Canadian distributor or broadcaster.

• Some genres are excluded, such as: pornography,

talk shows, news, live sporting events, game
shows, reality television and advertising.

• Non-BC individuals cannot receive a ‘producer’ or

‘co-producer’ credit

• The production corporation (or a related eligible

corporation - a BC-based Canadian-controlled
related corporation) must control the initial
licensing of the commercial exploitation of the
production

• The production must be completed within

24 months of the end of the taxation year in
which principal photography (or, for animated
productions, key animation) began

• The production corporation must apply for and

receive a completion certificate within 30 months
from the end of the taxation year in which principal
photography (or, for animated productions, key
animation) began

• There can be no distribution in Canada by a non-

Canadian distributor or broadcaster within 24
months of completion

It should be noted that special rules apply to

documentaries, international treaty co-productions
and inter-provincial co-productions.

Producing in Canada • 61
Provincial Production Services This tax credit is equal to six percent of accredited
qualified British Columbia labour costs incurred
Tax Credit (PSTC) by an eligible BC-based corporation in making the
production. For live action productions, accredited
The PSTC is a package of refundable corporate
qualified BC labour costs are prorated by the
income tax credits available to productions that are
number of days of principal photography in BC
not Canadian content productions, which are divided
within a prescribed area to the total days of principal
into four specific categories (it should be noted that
photography in BC. To be eligible for this tax credit,
a particular production may access only one of the
the production must be eligible for the Regional
FIBC or the PSTC, but not both).
Tax Credit and have at least 1 principal photography
Productions that incurred their first BC labour day in a distant location. For a series, this tax credit
expenditure within July 1, 2020 and February 21, 2022 is assessed on a per episode basis. For animated
must submit a pre-certification form through Creative productions, this tax credit is based on BC labour
BC’s website up to 120 prior to the pre-certification expenditure in respect of services rendered in BC in
form submission date. To claim the PSTC tax credits, a distant location. This incentive must be accessed in
production corporations must file a corporate income conjunction with the PSTC basic incentive.
tax return, along with the certificates, with the CRA.
A detailed map of the regional and distant location
Basic PSTC incentive areas is available at: [Link]/wp-content/
uploads/2022/02/Overview_Tax_Credit_Areas_2017_
This tax credit is equal to 28 percent of accredited combined_2.pdf
qualified British Columbia labour costs incurred by an
eligible BC-based corporation in making the production. DAVE PSTC incentive

Regional PSTC incentive This tax credit is equal to 16 percent of accredited

qualified British Columbia labour costs incurred
This tax credit is equal to six percent of accredited by an eligible BC-based corporation in making
qualified British Columbia labour costs incurred the production, which are directly attributable to
by an eligible BC-based corporation in making the eligible digital animation or visual effects activities,
production. For live action productions, accredited or eligible post-production activities. This incentive
qualified BC labour costs are prorated by the number must be accessed in conjunction with the PSTC basic
of days of principal photography in BC outside of incentive.
the designated Vancouver area to the total days of
principal photography in BC. Note that to be eligible There is no cap on the amount that can be claimed
for this tax credit, the production must have at least for a particular production, corporation or group of
5 principal photography days outside the designated corporations.
Vancouver area and over 50% of the BC principal
Eligibility requirements
photography days must be outside the designated
Vancouver area. For a series, this tax credit is The PSTC is available to both international and
assessed on a per episode basis. For animated Canadian projects shot in British Columbia, and is
productions, this tax credit is based on BC labour not subject to any Canadian content or Canadian
expenditure in respect of services rendered in BC ownership requirements. To be eligible for the PSTC:
outside the designated Vancouver area. This incentive
must be accessed in conjunction with the PSTC basic • The production company must have a permanent
incentive. establishment in British Columbia.

Distant location regional PSTC incentive • minimum budget levels:

62 • Producing in Canada
 - greater than CA$100,000 per episode - for Creative BC - Project
episodic television, episodes that are less than
half an hour Development Fund
- greater than CA$0 per episode - for episodic Creative BC also offers financing on a project-by-
television, where episodes are all or substantially project basis for the development of independent
all digitially animated and are less than half an film and television productions, including digital
hour media projects designed to enhance viewers’
experience of a film or television project.
- greater than CA$200,000 per episode - for
episodic television, episodes that are a half hour Funding is based on a commitment from an
or longer eligible triggering agent to advance funds for the
- greater than CA$1,000,000 - in all other cases. development of a specific project, is provided in the
form of a non-recoupable development advance, and
• The eligible BC-based production company must is available for specific applicants and projects that
either own the copyright in the production or have meet the following eligibility requirements:
contracted directly with the owner of the copyright
in the production to provide production services. • The company must be incorporated in British
Columbia or Canada, with its head office in
• Some genres are excluded, such as: pornography,
British Columbia.
talk shows, news, live sporting events, game shows,
reality television and advertising. • BC residents, who must also be Canadian citizens
or permanent residents, must hold a majority of the
Interactive Digital Media issued common voting shares of the applicant.

Tax Credit • With some exceptions, copyright of the project

must be fully owned (or optioned) and controlled
This tax credit is administered by the British Columbia by the applicant.
taxation authority, and is a refundable corporate
income tax credit of 17.5 percent of qualified • Must have a commitment from an eligible
British Columbia labour expenditures available to “Triggering Agent” to advance development funds
taxable Canadian corporations with a permanent for the project.
establishment in British Columbia to develop • The principals, directors, officers and shareholders
qualifying interactive digital media products, the of the applicant company must be in good
primary purpose of which is to educate, inform or standing with Creative BC.
entertain, and which include at least two of text,
sound or images, for expenses incurred after August • The market trigger must be at arm’s length from
31, 2010 and before September 1, 2028. the applicant company, and cannot be a related or
associated company

• The applicant company may own 10% or less of

the shares of a broadcaster and may have 10% or
less of its shares owned by a broadcaster or by
a distributor

Producing in Canada • 63
Successful applicants may receive a non-recoupable Individual applicants are eligible to receive support
advance of up to 50 percent of the broadcast or of CA$1,500 to CA$2,500 for select markets and
distribution commitment, up to CA$10,000 per shall represent no more than 50% of the applicant’s
project, or CA$20,000 for a series. final cash expenditures to attend. One producer
per company may apply for support to an individual
Eligible projects include feature films destined market site. In the case of a competitive call for
for theatrical release (live action or animated); applications, preference is given to producers who
television movies, pilots, series and mini-series (live can demonstrate recent production credits (i.e., in the
action, animation, variety, human interest, lifestyle, last two years).
and performing arts and entertainment), short
films and webseries (live action or animated) and Producers and companies who have received
documentaries and docudramas (made for television support four or more times over the past two years
broadcast or theatrical release). will have to demonstrate either recent production
credits or provide evidence that a significant amount
Creative BC – Passport to of financing has been raised from third parties for
the projects in their development slate. Individual
Markets Program producers are eligible for support to attend a
This program is an initiative that provides financial maximum of four market sites over two fiscal years.
support to British Columbia-resident producers Producers with only Executive Producer, Co-Producer
at certain markets, conferences and exchanges and Associate Producer credits are not eligible.
to promote projects that producers have in
For more information and updates on the Passport to
development, assist in securing broadcast pre-sales,
Markets Program, and full detail of the eligibility and
and stimulate co-production opportunities.
selection criteria, visit [Link].
Eligible applicants

Eligible to apply for the Passport Markets Program

are BC-resident producers who have a track record
in the domestic film and television industry and who
have been pre-selected to attend a particular market
site, as well as BC residents who have experience
producing domestically owned and controlled digital
media content.

64 • Producing in Canada
Manitoba government
incentive programs

Manitoba Film and Video at least one Manitoba resident receives training
on the production for each non-resident being
Production Tax Credit deemed and is approved by the applicable labour
organization(s) or approved authority per the
The Manitoba Film and Video Production Tax Credit is
Manitoba legislation. This deeming provision does
broken down into: (i) the Cost-of-Salaries Tax Credit,
not apply to producers, directors, actors, or any
and (ii) the Cost-of-Production Tax Credit, one to
above-the-line positions.
which must be chosen to apply. Once the production
is complete and all of the expenses have been paid, • Deemed salaries are capped at 30 percent of
companies have to choose which tax credit to apply to. the total eligible Manitoba salaries if at least two
Manitoba residents are trained per non-resident.
Eligibility requirements under the Cost-of-
The cap is 10 percent if at least one Manitoba
Production Tax Credit and the Cost-of-Salaries
resident is trained per non-resident.
Tax Credit
• Deemed positions must be identified
• Applicants must have a permanent establishment and communicated before the start of
(as defined in the Income Tax Act) principal photography.
in Manitoba, must be incorporated in Canada
(either federally or provincially), and must be a • Outside share ownership of the eligible applicant
taxable Canadian corporation primarily carrying company does not affect eligibility to claim the
on a business that is a film or video production. base credit.

• A minimum 25 percent of the corporation’s salaries • There are no corporate caps regarding the
and wages must be paid to eligible Manitoba number of applications or the amount of tax
employees for work performed in Manitoba credit available.
(excluding documentaries). Eligible projects include: Fully-financed television
• There are no Canada or Manitoba content movies, documentaries, features, dramatic
requirements. series, animation, children’s programming, music
programming, informational series, variety,
• Copyright ownership is not required. multimedia, digital and web-based productions.
• There is no requirement to work with Manitoba
Available to multi-year productions only, an eligible
producers.
applicant corporation with a project spanning
• Co-productions and co-ventures qualify for this tax more than one fiscal year may submit a complete
credit. application, along with required documentation, to
Manitoba Film & Music for an Advance Certificate of
• Where a non-resident is hired due to lack of
Eligibility after each fiscal year that ends prior to the
available Manitoba crew, his/her salary may be
delivery date, which allows for the ability to obtain
deemed an eligible labour expenditure provided
advance credits before the completion of a film.
that it is for a below-the-line technical position, that

Producing in Canada • 65
 CA$868 Million
Total volume of film and
television production in
Alberta, Saskatchewan,
Manitoba, Yukon,
Nunavut, and Northwest
Territories in 2021/2022
- Source: Profile 2022, CMPA

66 • Producing in Canada
Cost-of-Production Tax Credit during its entire taxation year. If the eligible
production extends over multiple taxation years,
Manitoba Film & Music has labeled the Cost-of- then the ownership requirement applies to all
Production Tax Credit as the most competitive applicable taxation years of the production
all-spend credit in Canada. It provides a 30% fully
refundable corporate income tax credit based on all Cost-of-Salaries Tax Credit
eligible Manitoba expenditures, including labour and
The Cost-of-Salaries Tax Credit provides a fully
deemed labour.
refundable corporate tax credit based on eligible
The Cost-of-Production Tax Credit can be increased Manitoba labour expenditures and eligible non-
by 8% by co-producing with an eligible Manitoba resident labour. The base credit is 45% and additional
production company. This bonus is applicable for bonuses may apply, increasing the value up to 65%
eligible productions where principal photography on eligible Manitoba expenditures.
commences after May 31, 2020. With the added value
The Cost-of-Salaries Tax Credit can be increased to
of the Canadian Film or Video Production Services
65% by qualifying for the following available bonuses:
Tax Credit (PSTC), the overall value of the up to 38%
on eligible Manitoba expenditures including eligible • Frequent Filming Bonus: tax credit increase by 10%
Manitoba labour becomes: on the third film shot within a 2-year period. The
10% bonus can be kept on subsequent projects by
• 47.9% on eligible Manitoba labour; and
maintaining production activity so that three films
• 38% on eligible Manitoba expenditures. are shot within a 2-year period. For series, projects
will incur one frequent filming credit for every 2
Qualifications of an eligible Manitoba production
hours of airtime; therefore, after the first 4 hours,
company
the series has the required credits to qualify for this
• Must have a permanent establishment (as defined bonus and it will be applied to the remainder of the
in the Income Tax Act) in Manitoba series.

• Must be a taxable Canadian corporation • Manitoba Producer Bonus: tax credit increase by
incorporated under the laws of Manitoba primarily 5% by co-producing with a Manitoba producer, co-
carrying on a business that is a film or video producer, or executive producer.
production • Rural and Northern Bonus: tax credit increase by 5%
• One or more eligible individuals (i.e., who reside in by shooting at least 50% of its Manitoba production
Manitoba for tax purposes on December 31 of the days at least 35 km from Winnipeg’s centre
taxation year of production or of the immediately • With the added value of the Canadian Film or Video
preceding taxation year) must own shares in the Production Services Tax Credit (PSTC), the overall
eligible applicant company to which are attached value of the up to 65% on eligible Manitoba labour
more than 50% of the votes for the election of becomes up to 70.6% on eligible Manitoba labour
directors of the corporation
A screen credit requirement for the Manitoba
• A minimum of 25% of the Manitoba corporation’s production company also applies
T4 Summary must be paid to eligible Manitoba
employees in the taxation year or in the
immediately preceding taxation year

• To qualify for the additional 8% tax credit, the

Manitoba production company must own some
of voting shares of the eligible applicant company

Producing in Canada • 67
Additional Manitoba film and music • Eligible labour costs include 100 percent of
programs include: salaries and wages incurred and paid to internal
employees who are Manitoba residents for the
• Pitch readiness program for multi-episode project period; and 65 percent of fees incurred
productions. and paid to third parties. In certain circumstances,
• Television and web-based development and an applicant corporation can seek pre-approval
production funds. through the Skills Transfer Allowance to hire or
contract an individual who is not a Manitoban
• Feature film development, production and
taxpayer and be eligible to receive a tax credit for
marketing funds.
a qualifying portion of their eligible wages.
• Grant program for emerging talent and micro-
• The project must also be eligible; to be eligible
budget production.
it must represent Manitoba labour activities
• Access to markets and access to festivals undertaken to either develop an eligible
programs. interactive digital media product primarily for
commercial use or develop or provide a qualifying
For more information on these and other programs,
product ‘add-on’ (an interactive digital media
visit [Link].
product update or enhancement), primarily for
commercial use
Manitoba Interactive Digital
• Corporations must first apply for a Certificate
Media Tax Credit (MIDMTC) of Eligibility (COE) for a proposed project
The MIDMTC provides up to a 40% credit to before eligible expenses can be incurred. Once
businesses on qualified labour expenditures, and approved, eligible project expenses may be
some marketing and distribution expenses, incurred incurred starting on the day the COE application is
in the development of eligible interactive digital received by the department.
media products for market. To be eligible for credit, • Eligible corporations can be controlled by
a corporation must first apply for a Certificate of Canadian or foreign owners
Eligibility before proposed project work on the
product begins. • There is no requirement for the corporation to
own the rights to the intellectual property of the
Eligibility requirements eligible product

• Must be a taxable Canadian corporation with a • A corporation may work on multiple eligible
permanent establishment in Manitoba. projects at one time, with no limit on the number
of project applications a corporation can make in
• Must pay at least 25 percent of its remuneration
a given year
to employees who are Manitoba residents.
A company that pays less than 25% of its salaries • Where the applicant owns and retains the
and wages to Manitoba residents can qualify for intellectual property for an eligible product,
a 35% tax credit if it incurs at least $1 million in certain marketing and distribution activities, up to
qualifying Manitoba labour expenses annually. a maximum of $100,000 in eligible expenses, may
also be eligible for a tax credit
• Product must be an eligible interactive digital media
product in accordance with MIDMTC regulations. • If an eligible product is developed partly
in Manitoba and partly in other locations,
• Eligible labour expenditures allows for the inclusion
development labour expenses for the work
of salary and wages beyond the base level (e.g,
undertaken in Manitoba can potentially qualify for
project related bonuses and employee benefits
an MIDMTC if all other requirements are met
directly attributable to the project)
For more information on this program, visit https://
[Link]/jec/busdev/financial/midmtc/index.
html

68 • Producing in Canada
New Brunswick government
incentive programs

NB Film, TV and New Media • When the applicant to the Production Incentive is a
New Brunswick company entering a co-production
Industry Support Program agreement with an external company, the
incorporated New Brunswick company must have
This program has two streams pursuant to which
a permanent establishment in the province, with a
grants are provided: (i) Development, and (ii)
minimum of 50% of voting shareholders being New
Production, with the Production stream being sub-
Brunswick residents
divided into either a Labour-Based Incentive or an
All-Spend Incentive. • Only incorporated New Brunswick companies
having a permanent establishment in the province,
with a minimum of 50% of voting shareholders
being New Brunswick residents, can apply for
financial assistance under the Development
Initiative; these companies must demonstrate
that their primary purpose is the domestic or
collaborative production of film or television
CA$249 Million
products; these can be privately owned or publicly-
Total volume of film and television traded corporations
production in Nova Scotia, • Individuals, non-incorporated groups, licensed
Newfoundland and Labrador, New broadcasters, distributors and national film
agencies are not eligible
Brunswick and Prince Edward
• For intra-provincial co-productions, all eligible
Island in 2021/2022 New Brunswick companies must retain an
- Source: Profile 2022, CMPA ownership position in the copyright of the project
commensurate to their financial participation to the
Eligibility requirements project.

• The production company must be incorporated in Development incentive

New Brunswick other than a corporation that holds
a broadcasting license issued by the CRTC. This incentive provides funds in the form of a grant
and supports the development of projects that
• Both New Brunswick and external companies can have already secured intent or commitment from
apply for the Production Incentive a broadcaster, funding agency and/or third party
• New Brunswick companies are defined as a financier. Dramatic feature films, made-for-tv movies,
company that has a permanent establishment dramatic tv series, and mini-series are eligible for up
in New Brunswick and can demonstrate 50% of to 50% of the approved development budget, up
its shareholders are New Brunswick residents to a maximum of CA$120,000 per project. All other
(i.e., defined as an individual who, for income tax genres of projects are eligible for up to 40% of the
purposes, has maintained a principal residence approved development budget to a maximum of
in New Brunswick and has filed their income tax CA$50,000. A maximum of 20% of the development
report in New Brunswick for the taxation year in costs for producer’s fees and corporate overhead
which principal photography of the production is allowed.
commenced)

Producing in Canada • 69
Production incentive Inter-provincial
Labour-Based: Is equal to a maximum of 40 percent co-production requirements
of eligible salaries paid to New Brunswick residents.
There must be an eligible New Brunswick company
Eligible salaries and wages cannot exceed 50 percent
that shares in the creative and financial control of the
of the eligible costs of production.
project. However, the determination of whether an
All-Spend-Based: Is equal to a maximum of inter-provincial co-production is eligible for funding
25 percent of all New Brunswick expenditures for is at the discretion of the Department of Tourism,
variety and service productions, or to a maximum Heritage and Culture (THC). The following factors are
30 percent of all New Brunswick expenditures for minimum requirements and will not guarantee funding:
New Brunswick-based productions or co-productions.
• The applicant production company must have
Per project, per genre maximums apply. Additionally, incorporated in New Brunswick and have a
individual production companies may be eligible permanent establishment in the province
for up to CA$2M in total approved project support • The applicant company must receive shared credit
in any given fiscal year. Eligible projects include as a producer of the project.
television movies, documentaries, feature films, tv
content, variety and capitations, animation, children’s • The applicant company must share in the revenues
programming, reality and lifestyle series, educational, of the production at terms no less favourable than
experimental and non-theatrical genres. Projects the proportion of funding it brings to the project.
submitted to the program must be undertaken in the • The New Brunswick company’s copyright
current fiscal year. ownership must not be less than 33 percent.

A maximum of 10% of (B+C) of the production • The proportion of the total production budget
budget for producer’s fees and corporate overhead expended in New Brunswick should favour and
for a production budget of more than CA$500,000 benefit New Brunswick and approval is at the
and a maximum of 15% for a production budget of discretion of the THC
CA$499,999 or less.
International co-productions
Deeming of residency may be granted if all conditions
are met prior to the first day of principal photography, International co-productions must meet the
and a maximum of 1 waiver per production may be requirements of inter-provincial projects, in addition
granted for all non-dramatic productions and up to 3 to the following:
per production for dramatic productions.
• The New Brunswick production company must
Service productions retain no less than 20% share of revenues and
ownership position in the copyright of the
Service productions must ensure a minimum of production
50 percent of the total production budget is to be
• The New Brunswick production company must
spent in New Brunswick, and 25 percent of all labour
demonstrate that it has satisfied all relevant
is New Brunswick-based. No funds will be disbursed
international co-production treaties determined by
until the production is completed and all required
Telefilm Canada
documentation and reports have been submitted
and approved. Service productions can only apply For more information on the Industry Support
for apply for the All-Spend Incentive (to a maximum Program and other projects, please visit [Link].
of 25 percent of all spend in NB), or the Labour-Based
Incentive (to a maximum of 40 percent of the labour
expenditure).

70 • Producing in Canada
Newfoundland and
Labrador government
incentive programs
Newfoundland and Labrador film • The company must pay a minimum of 25 percent
of salaries and wages within Newfoundland and
and video industry tax credit Labrador to provincial residents.
This refundable Corporate Income Tax credit is • Corporations must first apply for eligibility to the
provided for eligible local film projects at a rate of Newfoundland and Labrador Film Development
40% of eligible local labour costs, but may not exceed Corporation prior to the commencement of
25% of production costs. There is a corporate cap of production. Once the project is completed, and
CA$5 million for productions commenced on or after financial statements and cost reports finalized,
July 1, 2021. the eligible corporation may then apply for the tax
credit.
Eligibility requirements
Companies that hold a broadcasting license issued
• A production company must be incorporated by the CRTC, or companies that deal at non-arm’s
under the laws of Newfoundland and Labrador, length with a corporation that holds such a license
another province of Canada or Canada, have a are not eligible to apply for this tax credit.
permanent establishment in Newfoundland or
Labrador, and be primarily in the business of film,
television or video production.

CA$249 Million
Total volume of film and
television production in Nova
Scotia, Newfoundland and
Labrador, New Brunswick
and Prince Edward Island in
2021/2022
- Source: Profile 2022, CMPA
Producing in Canada • 71
Eligible genres include film, television programs The All Spend Film and Video Production Tax
or series or video programs in the following areas: Credit
drama, variety, animation, children’s programming,
music programming, an informational series or a This 40% tax credit will apply to total qualified
documentary. production costs with a maximum tax credit of CA$10
million annually per project.
The following genres are excluded from the
Newfoundland and Labrador Interactive Digital
program: news, talk shows, sporting events,
Media (IDM) Tax Credit (NL IDM)
galas, pornography, advertising, awards shows,
projects that solicit funds, projects produced The NL IDM tax credit is refundable tax credit,
primarily for industrial, corporate or institutional meaning the amount of the credit minus any federal
purposes, projects, other than documentaries, all or or provincial taxes payable will be paid to the
substantially all of which consist of stock footage, qualifying corporation. It is based on eligible salaries
projects for which public financial support would, and eligible remuneration incurred by an eligible
in the opinion of the minister, be contrary to public corporation during the period of January 1, 2015 to
policy, or projects the government determines are December 31, 2024 inclusive, for the development of
not eligible. eligible interactive digital media projects. Applicants
who develop an interactive digital media product in
Newfoundland and Labrador Newfoundland and Labrador can receive a 40% tax
Film Development Corporation credit on qualifying expenditures, which consist of
eligible salaries plus 65% of eligible remuneration paid.
(NLFDC) The credit value is limited to CA$40,000 per eligible
employee per year and CA$2 million per company,
The NLFDC is the film commission of the province
or group of associated companies, in respect of all
of Newfoundland and Labrador, and supports the
taxation years ending in a calendar year. For most
provincial film industry by offering the following
projects, the credit may be claimed in respect of the
initiatives.
year in which the expense was incurred; for projects
The Labour Based Tax Credit being developed primarily for government, the credit
may be claimed for the taxation year during which the
The Newfoundland and Labrador Film and Video
project was completed. Applications must be received
Tax Credit program is a fully refundable tax credit
within 18 months of the end of the taxation year in
based on a 40% rebate on eligible Newfoundland
respect of which the credit will be claimed.
and Labrador resident labour expenditures. The tax
credit is calculated at 40% of the total eligible labour Eligibility requirements
expenditures to a maximum of 25% of the total eligible
• The product’s main purpose must be educate,
production budget, with a single corporation credit
inform, or entertain. This must be achieved by
limit of CA$5 million. Corporations must also pay at
presenting information in at least two of the
least 25% of its salaries and wages to residents of the
following formats (i) text; (ii) sound; and (iii) images.
province. A waiver of the residency requirement is
available where eligible. The film and video industry • The product must be intended to be used
tax credit is a fully refundable corporate income tax interactively by individuals, must not be used
credit administered on behalf of the Department of primarily for interpersonal communication, and
Finance by the NLFDC. Applications must first be must not be used to market or promote an entity,
made to the NLFDC and before first day of principal product, or idea
photography for any project. Once the project is
Development Program
completed, and financial statements and cost reports
are finalized, the eligible corporation may then apply The NLFDC Development Program is available
for the tax credit. for eligible screen industry companies which are
majority owned by a resident of Newfoundland and
Labrador. Only incorporated Newfoundland and
Labrador film and video production companies
can apply. Individuals, non-incorporated groups, or
licensed broadcasters are not eligible. Corporations

72 • Producing in Canada
must demonstrate that their primary focus is on the Within genres, the NLFDC equity investment will
development, production, and distribution of film and normally be subject to the following maximums:
video products, and must be at least 51% owned by a
• Dramatic series - maximum CA$250,000
resident of Newfoundland and Labrador. Funding is
apportioned in two phases for non-series projects: • Theatrical feature film, television feature length
movie (MOW) - CA$250,000
• Phase One - Conception and Development of
First Draft: CA$15,000 is advanced for the option • Documentary (single or series), children’s, other -
or acquisition or rights, scriptwriter’s and editor’s CA$150,000
fees, research, required travel expenses, normal Sponsorship program
overhead, and producer’s fees. The contribution
cannot exceed 33% of the budget The Sponsorship Program provides qualified
individuals and organizations with funding
• Phase Two - Shooting Script and Production
assistance, enabling them to promote the products
Development: CA$20,000 is advanced for pre-
of the local industry. Applicants eligible for funding
casting and preliminary search for shooting
are Newfoundland and Labrador residents and
locations as required for script writing, required
organizations with screen industries as their
travel expenses, normal overhead, producer’s fees,
principal activities, and corporations must be
preliminary shooting schedule, preparation of a
at least 51% owned by a resident or residents of
marketing plan, preparation of the final budget, and
Newfoundland and Labrador. The program has three
completion of a shooting script. The contribution
application options:
cannot exceed 33% of the budget. A producer may
apply for Phase Two development without having Travel Sponsorships
received Phase One development.
• Available to Newfoundland and Labrador
For series projects, the full CA$35,000 of funding may residents only
be accessed in one stage. All criteria for non-series
• Identify how the opportunity increases the
projects in both phases apply for series applications.
applicants skillset within the screen industries
Eligible development projects may include script
writing/treatments and associated costs, as well as • 50% reimbursement after submission of eligible
production costs for smaller budget productions. receipts, up to a maximum of CA$2,000
Development projects cannot apply for a tax credit.
• Examples of applicable opportunities: fim festivals,
Development projects require a third party investment
markets, workshops, job shadowing
commitment, in addition to the producer and
the NLFDC. • Limited to one project per person/company,
per year
Equity Investment Program
Professional Learning Sponsorships
The NLFDC Equity Investment Program is available for
Newfoundland and Labrador production companies. • Available to Newfoundland and Labrador
The program may provide up to 20% towards a residents only
production’s financial structure, but normally the
• Must identify how the opportunity increases the
project’s local spend is a key criterion, among other
applicants skillset within the screen industries
factors, in determining an investment amount. The
schedule of payments will be based on the individual • Applicant will receive up to CA$2,000 after
project needs and production schedule. Typically, submission of an invoice
95% of the financial commitment will be disbursed • Example of applicable opportunities: job
on principal day of photography with the remaining shadowing, on-set training opportunities, short
5% being disbursed once the production has been films
completed and all conditions of funding have been
met. The NLFDC’s investment is recoupable from • Llimited to one project, per person/company,
earned revenue resulting from the production. per year
Equity investments may be combined with tax credit
program applications.

Producing in Canada • 73
Industry Partner Sponsorships

• Must identify how the opportunity will benefit the

NL Screen Industry

• Limited to one approval per organization, per year

• Examples of applicable opportunities: festivals,

workshop offerings, organizations, etc.

• Limited to one partnership per year

For more information on incentives provided by

the Government of Newfoundland and Labrador,
visit [Link].

74 • Producing in Canada
Northwest Territories
government incentive
programs
No tax credit is available to production companies that Expenditure rebate
produce in the Northwest Territories (NWT). Instead,
the NWT offers a three-stream Rebate Program as an • 25 percent rebate for all goods and services that
incentive to attract production companies to the area. qualify as NWT spend purchased and consumed
in the NWT.
NWT Film Rebate Program • An additional 15 percent rebate for goods and
services for productions shooting outside of
Eligible applicants and productions
Yellowknife city limits.
• Guest producers, NWT co-production partners, Travel rebate
and NWT production companies
• 10 percent rebate for travel to and from
• Pre-production and production costs for film and
the NWT from anywhere in the world.
television filming in the NWT, where NWT labour
content equals or exceeds 30% of total in-territory • 35 percent rebate for travel within the NWT
spend (excluding aerial photography).

• Minimum NWT spend of CA$60,000 (can combine • Travel costs for a non-NWT Resident may not
NWT labour/NWT spend, excluding GST) be eligible in cases where a qualified NWT crew
member could have been hired instead
• Preference given to projects with tv broadcast or
theatrical distribution commitments • Travel rebate amount may not exceed CA$15,000
per production
• Commercials are only eligible to apply under the
NWT Travel Rebate category For more information on rebates provided by the
Government of NWT, visit [Link]
• Productions must not fall under list and categories
funding
of inelligible productions

• Multi-year productions are encouraged to work

with the NWT Film Commission to develop a multi-
year plan

Labour/Training rebate

• 25 percent rebate for eligible NWT labour. CA$868 Million

• An additional 15 percent rebate for Recognized
Positions or for NWT residents receiving
Total volume of film and
on-set training. television production in
Alberta, Saskatchewan,
Manitoba, Yukon, Nunavut,
and Northwest Territories in
2021/2022
- Source: Profile 2022, CMPA
Nova Scotia government
incentive programs

Nova Scotia Film and Television Substitutions for Head of Department positions
are permitted. The base incentive percentage will
Production Incentive Fund be reduced by 0.5% for each Head of Department
position below the minimum requirements.
The Nova Scotia Film and Television Production
Incentive Fund is a refundable corporate income tax • Receive a base amount of 25 percent of all eligible
credit. Two streams are available based on percentage Nova Scotia costs.
of ownership.
• For shoots where greater than 51% of the principal
Stream I photography is in a rural/non-metropolitan area, 2%
additional funding is available.
• Exceptions may be made in the case of
international treaty co-productions, interprovincial • For shoots (principal photography) longer than 30
co-productions, or international co-ventures. days in Nova Scotia, there is a one percent bonus.

• Between 50-100 percent Nova Scotian-owned and Nova Scotia content incentives
controlled production.
In addition to the two base stream amounts, there are
• A minimum of 50% Nova Scotians must be further bonuses for productions that meet content
employed in Head of Department positions or criteria that are available separately or cumulatively.
acceptable combination. Substitutions for Head 1.5 percent can be added for hiring more than 60
of Department positions are permitted. The base percent Nova Scotian principal performers, actors,
incentive percentage will be reduced by 0.5% stunt performers, and stunt actors (for greater clarity,
for each Head of Department position below the background performers are not included in this
minimum stream requirement of 50% calculation) and a further 1.5 percent can be added by
meeting at least three of the following requirements:
• Receive base amount of 26 percent of all eligible
Nova Scotia costs. • A majority copyright ownership by the applicant
• For shoots where greater than 51% of the principal Nova Scotia production company.
photography is in a rural/non-metropolitan area, 2% • A minimum of two Nova Scotia resident trainees
additional funding is available. with no prior paid film or TV production experience
• For shoots (principal photography) longer than 30 are employed for the duration of the production.
days in Nova Scotia, there is a one percent bonus. • 75 percent of the post-production work is carried
out in Nova Scotia.
Stream II
• A Nova Scotia resident as producer, who
• 50 percent or less Nova Scotian-owned and
has been a resident for two years prior to
controlled production.
principal photography.
• Where eight or fewer Head of Department
positions are filled, half of the positions, rounded
to the highest whole number, must be filled by
Nova Scotia residents. Where nine or more Head
of Department positions are filled, a minimum
of four must be filled by Nova Scotia residents.

76 • Producing in Canada
• The amount of money spent in Nova Scotia is Eligibility requirements
75 percent of total production costs and greater
than CA$25,000. Eligible production companies must meet the
following criteria:
• The principal writer of the production is a Nova
Scotia resident, or, for a series, the majority of • Nova Scotian spend must be at least CA$25,000
episodes are written by Nova Scotia residents. (before HST). Maximum funding available to any
project is CA$10 Million.
• The principal director of the production is a Nova
Scotia resident, or, for a series, the majority of • Must be incorporated in Nova Scotia under the
episodes are directed by Nova Scotia residents. Companies Act or continued as a Nova Scotia
company through a Certificate of Continuance and
must be in good standing with the Registry of Joint
Stock Companies.

• Applicants, their shareholders, and Related

Companies must also be in good standing in all
respects with Nova Scotia Business Incorporated.

• Have a permanent establishment in Nova Scotia.

CA$249 Million • Must be engaged primarily in film and television
Total volume of film and television production business and demonstrate main activity
production in Nova Scotia, is the creation of film/video productions available for
public viewing.
Newfoundland and Labrador,
• Applications must be received prior to
New Brunswick and Prince commencement of principal photography.
Edward Island in 2021/2022. • At the time of submission, unless otherwise
- Source: Profile 2022, CMPA determined by the Administrator, applicants must
provide written evidence of a Commercial License

Producing in Canada • 77
 Agreement and evidence of 75% confirmed Applicant eligibility requirements
financing for projects with budgets of $1 million or
greater, and evidence of 50% confirmed financing • The applicant corporation must be incorporated in
for projects under $1 million Canada either federally or in one of the provinces
and is a taxable Canadian corporation
• Projects that are eligible for the Digital Media
Tax Credit and the Digital Animation Tax Credit, • The applicant corporation must have a permanent
or any other Nova Scotia tax credit program are establishment in Nova Scotia
not eligible • The applicant corporation must be Canadian-
• Productions and platforms that do not fall under list controlled and primarily (i.e., more than 50%)
of ineligible genres engaged in film or video production

• No individual shall directly or indirectly receive • The applicant corporation cannot be a labour-
pay, salary, fees, compensation, or any similar sponsored venture capital corporation or registered
payment that is budgeted or paid from the Fund as an Equity Tax Credit company or a Community
in an amount that is greater than CA$150,000 per Economic Development Investment Fund
project; this fee cap refers to the maximum amount • The applicant corporation must own the property
of the incentive that results when the eligible rights of the production, otherwise it may be
incentive percentage is applied to fee payments to eligible if the owner authorizes it to claim the DATC
an individual as fees
• Part A of the application must be submitted before
Digital Animation Tax Credit commencement of principal photography or key
animation
The Digital Animation Tax Credit (DATC) is a
• Part B of the application can be submitted once
refundable corporate tax credit that can be claimed
an Eligibility Certificate is received as a result of
for qualifying labour expenditures directly related
submitting Part A and the production is completed.
to the development of eligible digital animation
This must be submitted no later than 30 months
productions by eligible corporations in Nova Scotia.
after the end of the tax year in which expenditures
The credit first reduces the income tax payable, and
for any eligible digital animation productions were
any excess amount will be paid to the corporation.
made
The base tax credit is the lesser of: Production eligibility requirements
• 50% of the eligible Nova Scotia labour expenditure • Must have a minimum viewing time of 20 minutes
less the value of any assistance received; or,
• Be broadcast, distributed, or available for viewing
• 25% of eligible Nova Scotia labour expenditure plus no later than 24 months after it is completed
eligible overhead expenditure (calculated as 65%
of the eligible Nova Scotia labour expenditure) plus • Have a production services agreement or a
65% of eligible remuneration less twice the value of written agreement between the production’s
any assistance eligible corporation and one of the following for
consideration at fair market value: (i) a corporation
An additional tax credit of 17.5% is available on eligible that is a distributor of film or video productions,
Nova Scotian animation labour expenditures (i.e., (ii) a broadcaster that is not associated, within the
labour directly related to animation specific activities). meaning of the Income Tax Act (Canada), with the
eligible corporation

• The production must not fall under the list of

ineligible productions

78 • Producing in Canada
Digital Media Tax Credit A 10% geographic area bonus on labour expenditures
(5% bonus on total expenditures) is available for
Nova Scotia offers a digital media tax credit that rivals products developed outside the Halifax Regional
all others in Canada. The Digital Media Tax Credit is a Municipality. To qualify for the geographic area
refundable tax credit for costs directly related to the bonus, the corporation must:
development of interactive digital media products in
Nova Scotia. • Have a permanent establishment outside the
Halifax Regional Municipality
Qualifying companies can claim the lesser of:
• At least 50% of salaries for the development of
• 50% of qualifying Nova Scotia expenditures; or, the product must be paid to employees who work
out of a permanent establishment in the eligible
• 25% of total expenditures made in Nova Scotia.
geographic area
Qualifying expenditures could include:
• Note there is no requirement for the corporation to
• 100% of eligible salaries in Nova Scotia own the copyright to the product

• 65% of third-party labour remuneration, and All animation labour will be eligible for an animation
bonus of 17.5% on animation-specific activities,
• Up to CA$100,000 in marketing and and there is a maximum on salary levels eligible for
distribution expenditures consideration within the credit.
Applicant eligibility requirements

• Must be a taxable Canadian corporation

• Corporation must have a permanent establishment

in Nova Scotia

• Corporation must not be a prescribed labour-

sponsored venture capital corporation under
the federal Income Tax Act

Production eligibility requirements

• The digital media product must be interactive

• Primary purpose must be to educate, inform,

or entertain users

• May be developed for use by either individuals

or businesses

• Must achieve its primary purpose by presenting

information in at least two or three formats: text,
sound, or images

• The product must not fall under the list of

ineligible products

Producing in Canada • 79
Nunavut government
incentive programs

Nunavut Spend Incentive companies with a head office in Nunavut and which
meet the eligibility criteria as an applicant are eligible
Program (NSIP) to apply. However, the applicable spend rebate will
be 17% (plus bonuses) of the total eligible costs of
The Nunavut Spend Incentive Program administered
production goods and services purchased and
by the Nunavut Film Development Corporation
consumed in Nunavut. Funding will be capped at
(NFDC), awards production companies a rebate on
CA$75,000 for the first six months of the fiscal year
the total eligible costs for production goods and
after which time the cap will be removed for the
services purchased and consumed in Nunavut.
remainder of the fiscal, assuming available funds are
An eligible applicant company may apply through in the program.
one of the two streams, based on the ownership of
Spending stream II: Equal or minority (10 percent
the company: Ownership and Control Indicators:
to 50%) owned, controlled and creatively directed by
Spending stream I: Majority (51 percent or more) residents of Nunavut, and the company maintains a
Nunavut ownership and control of production and registered office in Nunavut. Officers and directors of
the company maintains a registered head office the company who are resident in Nunavut participate
in Nunavut. Residents of Nunavut employed in at in the management of business activities. Residents
least two of the eight key creative positions, or one of Nunavut employed in at least two of the eight key
key creative position and two trainee key creative creative positions, or one key creative position and
positions. Eligible to receive a spend rebate of two trainee key creative positions. Eligible to receive
27 percent of eligible Nunavut expenses purchased a spend rebate of 17 percent of eligible
and consumed in Nunavut. Non-profit production Nunavut expenses.

CA$868 Million
Total volume of film and
television production in Alberta,
Saskatchewan, Manitoba,
Yukon, Nunavut, and Northwest
Territories in 2021/2022
- Source: Profile 2022, CMPA

80 • Producing in Canada
Bonuses • Note: Productions in spending stream II with
budgets exceeding CA$500,000 must show
Under each stream, eligibility may be enhanced that they have entered into an agreement with
by employing and training additional key creative a licensed Canadian broadcaster or
personnel who are resident in Nunavut. In this case, bona fide distributor.
a bonus equal to 1% of the applicant’s total eligible
Nunavut costs will be paid for every individual hired • 100% copyright ownership in the eligible
to fill one of the eight key creative personnel positions production, or demonstrate have the first option
in the eligible production. Alternatively, the applicant to adapt the underlying property and acquire
has the option of filling one of the eight key creative copyright ownership
personnel with trainees. Under this enhancement • Be in good standing with the relevant
provision, a maximum total bonus of 3% applies to Corporate Registry
each spending stream.
• Each producer and/or co-producer must
Funding under each stream may be further enhanced meet certain criteria
if the completed production is produced or versioned
Genres of production NOT eligible for funding are:
into Inuktut language. Under this enhancement
provision, a bonus of 10% of the Nunavut spend, up • News, current events or public affairs programming
to a maximum of CA$40,000 is available for original or programs that include weather or market reports;
production in an Inuit Language or a bonus of 5% for
• Talk shows;
versioning in an Inuit Language up to a maximum of
CA$20,000 is available. Applicants applying for this • Sports events or activities;
incentive must provide a plan for the guaranteed
• Gala presentations or award shows;
distribution (internet, mobile, or direct sales) and/or
broadcast of the program within Nunavut. • Projects that solicit funds;

Eligibility requirements • Pornography;

• Advertising and commercials;

• Recipients must be a production company
incorporated in Nunavut or Canada, and their • Projects produced primarily for industrial,
primary activity must be developing and producing corporate, or institutional purposes;
film, television and/or digital media content.
• Projects, other than documentaries, which
• The amount spent in Nunavut for the project must substantially consist of stock footage;
be greater than CA$25,000.
Other programs available

The Nunavut Film Development Corporation

also administers the following funds for Nunavut
Filmmakers:

• Story Telling Fund: in response to COVID-19,

this is a creation fund that provides production
companies and individual filmmakers the flexibility
of a greater diversification of activities not currently
served by NFDC’s funding programs. It encourages
applications for self-distancing type activities
including project development, showreel, research,

Producing in Canada • 81
 animation, music videos, podcasts, and online • Creative content development fund: Provides
marketing and promotional materials. A project for the development of creative content for
may apply for a grant of up to: (i) CA$7,500; (ii) up film, television, and digital media. It has been
to CA$1,500 under the Inuktut Language Incentive. established to assist Nunavut production
A bonus of 5% of the Story Telling Fund spend up companies to develop digital media content,
to a maximum of CA$1,500 is available for original particularly that which is interactive and convergent
productions; and, (iii) 5% of Story Telling Fund to existing television programming. A project
Grant, if applicable, up to a maximum of CA$250 may apply for up to three grants of CA$7,500
per project in connection with Internet Uploading/ each. Film, television, and digital media projects
Downloading. This fund is applicable to projects in the early or later phases of drafting and design
that do not qualify for Nunavut Film’s exiting and pre-production are eligible. Applications for
funding programs. development of projects intended for production in
Nunavut will be given priority.
• The Learning Fund: provides opportunities for
exploring the potential for employment in the film, • Market endowment program: Is an initiative that
television, and digital media industry. Experiences awards an individual producer financial assistance
can include specifically designed film camps, up to CA$5,000 to cover their costs to attend
coordinated lecture series, and film festivals. international markets, co-production conferences
Recipients will receive up to CA$5,000 to complete or forums. Assistance under this program is also
their project. available to producers or directors whose project
has been nominated for an award or selected
• Short Film Fund: provides an opportunity for
for a screening at a major festival. Applications
emerging filmmakers to participate in a mentored
should be made well in advance. In some cases,
program that will provide up to CA$25,000
the producer may only attend an event if they have
including the cost of mentoring services, and
been selected by the event organizers in advance.
provide mentoring from an established industry
Applicants may apply for an advance equal to 75%
professional by offering advice, expertise, and
of the approved contribution under the fund.
support. The project must be an eligible project,
have a finished running time of under 30 minutes, For more information on the programs provided by
be of SD/HD broadcast quality, and applicants the Nunavut Film Development Corporation, visit
must maintain copyright and creative and financial [Link]
control over the project. In addition, projects
can receive additional funding under th Inuktut
Language Incentive.

• Inuktut Language Incentive: provides support for

the production of new programs or versioning of
existing programming of relevance to Nunavut into
Inuktut. The purpose of this program is to increase
the amount of relevant film, television, and digital
media that is available to the residents of Nunavut
in Inuktut through broadcast, consumer sales,
educational institutions, or online. Recipients will
receive a grant of 33% of the cost of versioning
up to a maximum grant of CA$10,000 per project.
Applicants must provide a plan for the guaranteed
distribution (internet, mobile or direct sales) and/
or broadcast of the program within Nunavut.
Funding can be simultaneously applied for with
the applications of the Short Film Fund and the
Nunavut Spend Incentive Program.

82 • Producing in Canada
Producing in Canada • 83
Ontario government
incentive programs
Ontario Creates (formerly known as • The production company must have a permanent
establishment in Ontario.
OMDC) jointly administers the following
tax credit programs with the the • The production company must be Canadian
controlled, files an Ontario corporate tax return,
Ministry of Tourism, Culture and Sport: and must be a qualified corporation for the
purpose of the federal credit.
Ontario Film and Television
• The production company’s primary business must
Tax Credit (OFTTC) be the production of Canadian films and videos.
The OFTTC is a refundable tax credit based on • At least 95 percent of post-production costs must
eligible Ontario labour expenditures incurred by a be incurred in Ontario other than in the case of co-
qualifying production company with respect to an productions.
eligible Ontario production. The OFTTC is generally
• The producer must be an Ontario resident for at
“harmonized” with the Canadian Film or Video
least two years prior to the commencement of
Production Tax Credit, and is jointly administered with
principal photography.
the Canada Revenue Agency. The OFTTC is equal to
35 percent of eligible labour costs, with no cap. First- • The production must attain at least six of the
time producers are eligible for an enhanced rate of 40 possible 10 CAVCO points (unless it is an official
percent on the first CA$240,000 of labour costs. treaty co-production).

Eligibility requirements • A minimum of 85 percent of the total number of

days of principal photography or key animation
• At least 75 percent of total final production costs must be done in Ontario, unless it is a documentary
are Ontario expenditures (in the case of inter- or treaty co-production.
provincial and international treaty co-productions,
• The Ontario Minister of Culture must certify the
75 percent of total expenditures are in respect of
production as an Ontario production.
the Ontario portion of the production).
• The production must be predominantly shot and
• In the case of an inter-provincial co-production, not
posted in Ontario (however, there are exceptions
less than 20 percent for the cost of producing the
for documentaries, interprovincial co-productions,
production is in respect of the Ontario portion of
and international treaty co-productions)
the production.
• As of August 24, 2023, eligibility for the film
and television tax credits has been extended
to productions released exclusively online.
These regulatory amendments are effective for
productions that began principal photography on
or after November 1, 2022. The previous rules apply
for productions that began principal photography
CA $3.8 billion prior to that date. The regulations do not restrict
Total volume of film and eligibility to specific types of online platform.

television production in Ontario • If for television, the production must be suitable

for a minimum 30-minute time slot (excluding
in 2021/2022.
children’s programming)
- Source: Profile 2022, CMPA
• Where principal photography commenced before
November 1, 2022, productions must have an
agreement with an Ontario-based distributor or
84 • Producing in Canada
a Canadian broadcaster to be shown in Ontario
 within 2 years of completion (broadcast must Ontario Production Services
occur between 7:00pm and 11:00pm, except for
children’s programming) Tax Credit (OPSTC)
• The OFTTC and the OPSTC (defined below) cannot The OPSTC is calculated at 21.5 percent of all
both be claimed for the same production qualifying production expenditures (labour, service
contracts, and tangible property expenditures) in
• Productions that began principal photography
Ontario. There is no limit on the amount of qualifying
after August 24, 2023, are required to include an
expenditures and labour expenditures, including
acknowledgment of Ontario tax credit support
Ontario labour paid under an eligible service contract,
in the production’s end credits. For a series, the
must be at least 25% of the qualifying production
acknowledgment is required in the end credits of
expenditures claimed. In addition, this credit can be
each episode for which the tax credit is claimed
combined with the federal film or video production
Ineligible productions include: Television programs services tax credit of 16 percent of qualified Canadian
not shown in prime time other than children’s labour expenditures. This credit is available to
programming and non-Canadian controlled service both Canadian and foreign production companies
productions, news, game shows, award shows, producing in Ontario. The OPSTC requirements are
fundraising shows, talk shows, reality television and generally “harmonized” with the federal Film or Video
sports shows. Production Services Tax Credit administered by
CAVCO and the CRA.
Inter-provincial and international treaty co-productions
are eligible for this tax credit. In such cases, the Eligibility requirements
calculation is based on Ontario’s portion of the
production budget. • The corporation must carry on a film or video
production services business at a permanent
Regional bonus establishment in Ontario, file an Ontario corporate
tax return, and own the copyright in the eligible
Productions shot in Ontario and entirely outside production, or contract directly with the copyright
of the Greater Toronto Area (GTA) (which consists owner to provide production services to an eligible
of the City of Toronto and the regional municipalities production
of Durham, Halton, Peel and York) or productions that
• The production cost must exceed CA$1 million,
have at least five location days in Ontario (in the case
except in the case of a series consisting of two
of a television series, the number of location days
or more episodes, or a pilot for such series. In the
must be at least equal to the number of episodes in
cast of a series or pilot, the cost for each episode
the series), and at least 85 percent of such location
which has a running time of less than 30 minutes
days outside of the GTA, are eligible to receive a
must exceed CA$100,000 and the cost for
10 percent bonus on all Ontario labour expenditures.
episodes with a longer running time must exceed
Wholly animated productions which create at least
CA$200,000.
85% of key animation in Ontario outside of the GTA
qualify for the regional bonus. • The OFTTC and the OPSTC cannot both be
claimed for the same production.
Temporary Extensions as a result of COVID-19
• Ineligible genres include news shows, talk shows,
The Province introduced certain temporary legislative game or contest productions, sports events,
and regulatory amendments to Ontario’s media tax gala or award presentations, pornography, reality
credits to help companies maintain their tax credit television, and advertising or industrial productions.
eligibility in view of disruptions and delays caused by
• No content requirements need to be satisfied to be
COVID-19. These amendments provide temporary
eligible for this tax credit provided the production
extensions to the following requirements:
company has a permanent establishment in
• The timeline to apply for a Letter of Confirmation Ontario (which includes a production office set
up in Ontario during filming), and either owns the
• The timeline to have the production shown in
copyright in the production or contracts directly
Ontario, and
with the copyright owner.
• The period to claim expenditures incurred prior to
principal photography or key animation Producing in Canada • 85
• Productions that began principal photography expenditures in addition to the Ontario Film and
after August 24, 2023, are required to include an Television Tax Credit (OFTTC) or the Ontario
acknowledgment of Ontario tax credit support Production Services Tax Credit (OPSTC). Eligible
in the production’s end credits. For a series, the productions must have received an OFTTC or OPSTC
acknowledgment is required in the end credits of certificate in order to be eligible for the OCASE
each episode for which the tax credit is claimed tax credit. Qualifying corporations may include
animation or visual effects houses, post-production
• As of August 24, 2023, eligibility for the film
houses and film and television production companies
and television tax credits has been extended
which perform eligible computer animation and
to productions released exclusively online.
special effects activities.
These regulatory amendments are effective for
productions that began principal photography
on or after November 1, 2022. The previous
Ontario Interactive Digital Media
rules apply for productions that began principal Tax Credit (OIDMTC)
photography prior to that date. The regulations
do not restrict eligibility to specific types of online This tax credit is equal to 40 percent of eligible
platform. Ontario labour expenditures, and eligible marketing
and distribution expenses incurred in the creation
Temporary Extensions as a result of COVID-19 of eligible interactive digital media products by
an eligible corporation that develops and markets
The Province introduced certain temporary legislative
their own products. The credit is 35 percent on
and regulatory amendments to Ontario’s media tax
eligible Ontario labour expenditures for products
credits to help companies maintain their tax credit
developed under a fee-for-service arrangement. A 35
eligibility in view of disruptions and delays caused by
percent credit on eligible labour expenditures is also
COVID-19. These amendments provide temporary
available to qualifying digital game corporations and
extensions to the following requirements:
specialized digital game corporations. The maximum
• The timeline for productions to meet the minimum eligible marketing and distribution expenditures are
spending requirements capped at CA$100,000 per non-specified product.
There is no limit on the amount of eligible Ontario
• Allow for productions to claim otherwise eligible
labour expenditures which may qualify and there is no
expenditures incurred in the two taxation years
per-project or annual corporate limits on the amount
prior to the year in which principal photography or
of the OIDMTC which may be claimed.
key animation begins
Eligibility requirements
Ontario Computer Animation
• 80/25 test: The 80/25 test rule requires that 80
and Special Effects Tax Credit percent of total development labour costs to create
(OCASE) the product be for work performed in Ontario and
paid to a company’s Ontario resident employees,
This tax credit assists in the creation of digital
and eligible remuneration paid to arm’s length
animation or digital visual effects to be used in
personal services corporations, and individuals
eligible film or television productions. The OCASE
providing services as part of a sole proprietorship
tax credit is equal to 18 percent of eligible labour
with no employees. Also, 25 percent of total
costs incurred by a qualifying corporation with
development labour costs to create the product
respect to eligible computer animation and special
must be paid to Ontario-based employees for work
effects activities, with no cap of the eligible Ontario
performed in Ontario.
labour expenditures. This tax credit is available to
both Canadian and foreign-owned corporations that • The production must be an “eligible product” in
create digital animation or digital visual effects at accordance with OIDMTC regulations. Including,
a permanent establishment in Ontario and files an but not limited to, presenting information in at least
Ontario corporate tax return. This includes digital two of the following three formats: text, sound and/
animation and digital visual effects that are created or images.
for non-Canadian productions, provided they are • There are four types of products that can be
created at a permanent Ontario establishment. claimed under the OIDMTC: non-specified
The OCASE Tax Credit may be claimed on eligible products, specified products, eligible digital
86 • Producing in Canada
 games developed by a qualifying digital game majority of the rights necessary to exploit and
corporation, and eligible digital games developed produce the production
by a specialized game corporation.
• Applicants must receive a producer credit
• Types of interactive digital media products that may on the project
be eligible for the tax credit include digital games,
• Types of eligible projects include: theatrical feature
mobile applications, and e-learning products for
films, scripted television series, made-for-television
children. Operating system software is not eligible
movies, documentaries
for the tax credit.
• Priority is given to productions featuring Northern
• The product must be created at a permanent
Ontario culture and stories, Northern Ontario talent,
establishment in Ontario.
and which are set in Northern Ontario
• The corporation that develops the eligible product
• Funding decisions are based on the evaluation
must be a Canadian corporation, but need not be
criteria under the Northern Ontario Benefits
Canadian owned.
assessment and Production Strength assessment
• The claim period for Ontario labour expenditures
NOHFC funding is based on the project’s total level of
is 37 months preceding the end of the month in
spending in Northern Ontario. It provides assistance
which the product was completed.
in the form of a conditional contribution up to 50% of
• The corporation must not be exempt from taxation eligible costs to a maximum capped on a tiered basis
under the Corporations Tax Act. according to the total northern spend:

• More than 50 percent of product content must • For a total production budget of CA$5M, the
meet the primary purpose test, meaning the potential level of support is up to CA$500,000
product should be designed for recreation, or for
• For a total production budget of up to CA$5M -
children under 12, the product should be designed
CA$10M, the potential level of support is
as a tool for teaching.
up to CA$1M
• The user of the product must be able to choose
• For a total production budget of CA$10M
what information is presented and the form and
and above, the potential level of support
sequence in which it is presented.
is up to CA$2M
• Products that are primarily promotional are
Applicants must provide evidence of the availability of
excluded. Products with no revenue generating
all other project financing with terms and conditions
stream are excluded as they are considered to
satisfactory to the NOHFC, at the time of application.
promote the developer or the products of the
The project must have secured a written commitment
developer (or the purchaser or products of the
letter from a qualified and experienced distributor or
purchaser)
broadcaster, satisfactory to the NOHFC, at the time of
Northern Ontario Heritage Fund application.

- Film and Television Stream Ontario Creates Film Fund

(NOHFC)
The Ontario Creates Film Fund is intended to increase
The Film and Television Stream is designed to the level of domestic feature film production in
increase film and television industry jobs and Ontario. It will provide support to Ontario producers
investment and to increase quality, original film and for feature film projects in the final stages of
television production produced in Northern Ontario, development and production financing, as well as
while showcasing its culture, geography, stories and marketing and distribution. The Ontario Creates Film
talent. Fund consists of several components, including:

Eligibility requirements • Development: Provides funding in the form of

an interest-free loan of up to CA$25,000 for
• The production company must be a Canadian the final development stage. Ontario Creates
corporation which is Canadian controlled support cannot exceed 75% of the budget for the
• The production company must own all, or a selected development stage. This contribution
Producing in Canada • 87
 must be repaid at the commencement of principal Other programs
photography.
Other Ontario funding programs include:
• Production: funding for documentary films at all
budget levels is capped at CA$150,000. Funding • The Ontario Arts Council: Media Arts.
for dramatic features are capped on a tiered basis
according to Ontario spend (labour and non- • Toronto Arts Council: Media Artists Program.
labour):
For more information on programs provided by
• Ontario Creates will prioritize projects that amplify Ontario Creates, visit [Link].
voices and content owned and controlled by
people the guidelines define as racialized and
equity-deserving communities.

• For an Ontario Spend of CA$5M and up, the

maximum request is CA$400,000

• For an Ontario Spend of CA$3M and CA$4,999M,

the maximum request is CA$300,000

• For an Ontario Spend of CA$1M and CA$2,999M,

the maximum request is CA$250,000

The Film Fund will continue to be a last-in participant

in production financing. 70% of production financing
must be in place at the time of application (can
exclude Ontario Creates ask and any financing under
review from other recognized industry funding
programs)

• Marketing and Distribution Initiative: is open to

Ontario Creates Film Fund Production recipients
(through the drama or documentary production
stream). Successful applicants are eligible to
receive up to CA$25,000, capped at 75% of the
total costs for all activities. Eligible projects must
be completed, delivered, or close to delivery and
undertaking domestic release. Projects that have
been commercially released are not eligible.
The project’s release date must be slated to occur
between April 1, 2023 and March 31, 2024.

Complete eligibility requirements are outlined in

further detail at [Link].

88 • Producing in Canada
Prince Edward Island
government incentive
programs
Prince Edward Island does not offer Eligible applicants

funding specific to the film industry • Must have as their principal business the
through tax credits. However, it offers a production of film and television

government rebate program, called the • Must demonstrate that their main activity is the
Prince Edward Island Film Production creation of productions available for public viewing

Fund (PEIFPF), administered by • Are incorporated in Canada, either federally or

provincially
Innovation PEI.
• Applicants, shareholders, and related companies
Prince Edward Island Film must be in good standing with Innovation PEI and
the Province of Prince Edward Island
Production Fund (PEIFPF)
• Distributors, broadcasters, or other issuers of
The PEIFPF supports the development and growth commercial license agreements (including online
of the private-sector film and television industry in distributor or aggregator) are not eligible to apply
PEI. It provides a financial incentive to make PEI a
competitive location for productions and encourages • PEIFPF may be used for co-productions; for treaty
the development, training, and hiring of PEI film co-productions, PEIFPF is applicable to the Canadian
personnel. only portions as per the guidelines set out in
Canada’s existing treaty co-production agreements
The fund provides this support via a base rebate of
• Applicants in arrears with any government
32% of eligible PEI expenditures for work completed in
department or crown corporation will be disqualified
PEI.
• Applicants must use best efforts to include
An increase to the rate is available through the
location and Government of PEI credits on-screen
following bonuses:
and in advertising and promotional material
• PEI Production Bonus: 1% point for productions by
PEI producers or co-productions where the PEI
producer has at least 25% control;

• Series Production Bonus: 2% points for series

productions

The PEIFPF will be available beginning April 1, 2021 CA$249 Million

until March 31, 2024, at which time it will be evaluated.
Total volume of film and television
If Innovation PEI approves funding for the production,
it will issue a Fund Letter of Offer detailing the
production in Nova Scotia,
terms, conditions, obligations, and requirements for Newfoundland and Labrador, New
payment to be issued. Brunswick and Prince Edward
Applications must be submitted prior to the Island in 2021/2022
beginning of production.
- Source: Profile 2022, CMPA

Producing in Canada • 89
Eligibility requirements Eligible costs

• Productions must be new productions and Eligible costs include all expenditures where the good
must not fall within the list of ineligible genres or service is purchased from a PEI-based supplier
or platforms; repackaging or re-versioning of (with a permanent physical establishment within PEI),
previously completed productions will not be and is leased, used, provided or consumed in PEI.
accepted Wages paid to PEI residents are eligible expenditures.

• Development activities are not supported activities The PEIFPF includes a provision for deemed labour
when no PEI resident is available and qualified to fill a
• Productions must have a commercial license technical role. Deemed labour must be pre-approved
agreement (which may or may not include a license by Innovation PEI to be an eligible cost, and cannot
fee) exceed 30% of eligible PEI labour costs. The ratio
• The amount of money spent in PEI for the of eligible non-resident trainee is calculated on the
production must be at least CA$25,000 before HST average for the production, not on an individual basis.
The deeming provision does not apply to producers,
• All projects must be finished and made available directors, actors, or any above-the-line position.
to audiences
Any requests for deeming must be completed prior to
• The applicant must provide a financing structure the start of principal photography.
and budget in industry-standard format and
demonstrate that the production is fully financed The value of in-kind contribution is not considered an
eligible PEI expense. Capital items are not considered
• The applicant production company must an eligible PEI expense.
demonstrate that all necessary insurance and
performance bonds (where required) are in place Except when approved in advance, producers
may claim no more than one Head of Department/
• There are no content requirements, other than for Performer position in addition to being a producer.
productions for which a Film or Video Production In these approved instances, total fees eligible
Certificate from CAVCO will be sought for inclusion as an eligible PEI cost for Head of
Department/Performer services payable to producers
are employed in Head of Department positions will be
no greater than applicable industry standard or 20%
of the budget, whichever is lower.

For more information on PEI’s film and television

industry, please visit [Link]/en/
service/prince-edward-island-film-production-fund

90 • Producing in Canada
Producing in Canada • 91
Québec government
incentive programs
Québec offers some of the most costs for other productions. Additionally, an effective
eight percent tax credit available per fiction feature
advantageous cash rebates available film or single documentary that does not receive
in North America. Administered by any financial assistance from a public organization.
the Société de développement des With the addition of bonus credits, the general
maximum effective rate is 33 percent for non-foreign
entreprises culturelles (SODEC), the
productions and 31 percent for foreign-based
Québec tax credits are based on all productions.
expenditures and the producer is not
Eligibility requirements
required to release the film in Québec.
• A production company must first obtain an
Refundable tax credit for Québec advance ruling or certificate from SODEC.

film and television productions • A production company must be a corporation

having an establishment in Québec, must carry on
The refundable tax credit for Québec film and a Québec film or television production business,
television productions, which is administered by must not be directly or indirectly controlled by
the Société de développement des entreprises a person or persons not resident in Québec for
culturelles (SODEC), is generally equal to 32 percent at least 24 months prior to the year in which the
of eligible labour expenditures, to a maximum of tax credit is claimed, must not be a corporation
50 percent of production costs. However, film or holding a broadcast licence issued by the CRTC
television productions that are based on a foreign (a Broadcaster), must not be a corporation that
(created outside of Québec) concept or format, in the preceding 24 months has had a non-arm’s
may qualify for a lesser credit equal to 28 percent of length relationship with a Broadcaster unless the
eligible labour expenditures, to a maximum of corporation has been issued an eligibility certificate
50 percent of production costs. An additional bonus by SODEC for the current fiscal year, and must not
credit of ten percent is available for eligible labour be exempt from income tax.
expenditures, which are directly attributable to the
creation of digital animation or visual effects. For • The production must generally meet six of the
giant screen films and certain French-language possible 10 Québec content points (the Québec-
productions, including (i) animation; (ii) youth content point scale is similar to that of CAVCO, but
programming; and (iii) documentaries that meet is based on residence of key personnel in Québec,
higher content criteria, a tax credit, to a maximum rather than on Canadian citizenship). In certain
of 50 percent of productions costs, of circumstances, the production must meet seven of
40 percent of labour expenditures applies for original the 10 possible Québec content points, where only
productions originating in Québec, and of five of the key personnel are residents of Québec
36 percent of labour expenditures applies to foreign- but where two are residents of Canada.
based productions made in Québec. For regional • For productions of 75 minutes or more (per
productions (in the Province of Québec but outside episode in the case of a series), 75 percent of post-
of the Montréal region) produced by regional production costs must be incurred and paid with
producers, an additional credit of ten percent of respect to services rendered in Québec.
eligible labour expenditures applies to a maximum
• For productions of 75 minutes or more (per
of 50 percent of production costs for giant screen
episode in the case of a series), a minimum of
films and French-language productions, and of
75 percent of production costs, excluding
twenty percent of eligible labour expenditures
payments to key personnel for purposes of the
applies to a maximum of 50 percent of production

92 • Producing in Canada
 point scale and those related to financing, must effects and animation including the shooting of
be paid to individuals residing in Québec at the scenes in front of a chroma-key screen.
end of the previous year, or to corporations or
partnerships having an establishment in Québec Eligibility requirements
during the year. • A production company must first obtain an
advance ruling or a certificate from SODEC.
• For productions of less than 75 minutes (per
episode in the case of a series), and for all co- • The corporation must have an establishment
productions regardless of duration, the content in Québec.
points requirement relating to key personnel does
• The corporation’s primary business must be
not apply, but the production must meet the
the operation of a film or television production
requirement that 75 percent of all production costs,
business or production service business.
except those relating to financing, must be paid to
individuals residing in Québec at the end of the • The production company must either own the
previous year, or to corporations or partnerships copyright in the production throughout the
having an establishment in Québec during the year. period during which the production is carried out
in Québec or have directly contracted with the
• A production must have a commitment from a
copyright owner to render production services for
Canadian broadcaster or distributor undertaking
the production.
that the production will be broadcast or exhibited
in theatres in Québec. However, for a giant-screen • The minimum production costs requirement is
production, the production company only needs an CA$250,000 or more. In the case of a film that
undertaking that the production will be screened in is part of a series or miniseries, the production
Canada in a public performance venue. costs of the series or miniseries; in other cases, the
production costs of the film
Eligible projects (live action or animation) include
feature films, television programs, documentaries and • The corporation must not be exempt from
documentary series, children’s programs, and certain income tax.
variety and game programs.

Official treaty international co-productions and inter-

provincial co-productions are also eligible for this tax
credit if a minimum of 75 percent of production costs
relating to the Canadian portion of the co-production
are paid to Québec residents or incurred for services
rendered in Québec. In such cases, the tax credit is
calculated based on Québec’s portion of the budget.

Québec offers some of the most advantageous cash

rebates available in North America. Administered
CA $3.02 billion
by the Société de développement des entreprises Total volume of film and
culturelles (SODEC), the Québec tax credits are based
television production in Quebec
on all expenditures and the producer is not required
to release the film in Québec. in 2021/2022
- Source: Profile 2022, CMPA
Refundable tax credit for film and
television production services
This tax credit, administered by SODEC and the
Ministere du Revenu du Québec is equal to 20
percent of all-spend production costs (including
qualified labour costs and the cost of qualified
properties). An additional bonus rate of 16% is
available for labour-based computer-aided special

Producing in Canada • 93
Official treaty co-productions are eligible for the the software used] and the preparation of markers,
Québec refundable tax credit for film production verification and the correction of adapted texts)
services. Eligible projects are fiction films and
documentaries lasting a minimum of 30 minutes, Co-Production
or in the case of a series, 30 minutes of programming
This tax credit cannot be combined with any
per episode (excluding documentaries intended for
other Québec tax credit except for the Québec
minors and virtual reality documentaries, which may
Film Dubbing Tax Credit as long as the dubbing
be shorter). Eligible fiction films or documentaries
expenditures are not included in the production costs
include virtual reality (VR) or augmented reality (AR)
under this tax credit.
products.
For more information on programs administered by
This tax credit cannot be combined with any
SODEC, visit [Link]
other Québec tax credit except for the Québec
Film Dubbing Tax Credit as long as the dubbing
expenditures are not included in the production costs
The Québec production of
under this tax credit. multimedia titles tax credit
Québec dubbing tax credit This credit is administered by Investissement Québec.
The refundable tax credit for Category A titles (i.e.,
The Québec dubbing tax credit administered by multimedia titles intended for commercialization, not
SODEC is equal to 35 percent of eligible labour vocational training titles) is granted at a rate of 30%
expenditures incurred for dubbing an eligible of qualified labour, with a premium of 7.5% offered
production. This amount is capped at 50% of eligible for qualified labour if in a French langugage version.
dubbing costs. This credit cannot be claimed if For Category B titles (i.e., other multimedia titles),
dubbing costs were included in production costs 26.25% of qualified labour is offered. For specialized
for the refundable tax credit for Québec film and corporations (credit is based on corporation’s
television productions, or if claimed under the qualified labour, not production’s qualified labour),
refundable tax credit for film production services. if a minimum of 75% of eligible multimedia titles
produced are Category A titles or a minimum of
Eligibility requirements 75% of gross revenues came from Category A titles,
• The corporation must have an establishment then a rate of 30% of corporation’s qualified labour
in Québec. is offered, with a premium for French at 7.5% of the
corporation’s qualified labour. For all other multimedia
• The corporation must provide dubbing services
titles, 26.25% of the corporation’s qualified labour
(this includes broadcaster-affiliated companies).
is offered. The maximum annual qualified labour
• This tax credit is only available to productions that expenditure per eligible employee is CA$100,000
meet the genre requirements of the refundable tax (exceptions apply).
credit for Québec film and television productions.

• The corporation must obtain a certificate from

SODEC certifying the production as a qualified
production.

• 75 percent of the persons engaged in set direction

or as talent associated with the dubbing of the
qualified production must be Québec residents.

• For eligible productions, the following two services

constitute eligible dubbing services: (i) the audition
(i.e., the test session intended to establish the
dubbing cast); and, (ii) the preparation of texts
(i.e., the work relating to computer-assisted
detection [including the preparation and formatting
of the original text according to the standards of

94 • Producing in Canada
A corporation for which 75 percent of its activities • The corporation must not be exempt from income
consist of producing eligible multimedia titles for itself tax.
or others, may expedite the process of applying for
• The corporation must not be entitled to the
the credit by qualifying as a specialized corporation.
tax credit for corporations specializing in the
Eligibility requirements production of multimedia titles.

• Eligible multimedia titles may be online or offline,

• The corporation must have an establishment in
but must be interactive and contain a significant
Québec and operate a multimedia title production
amount of at least three of the following elements:
business.
text, sound, images and animated images, unless
• The corporation must first obtain an eligibility intended for customers with a disability.
certificate from Investissement Québec.
In general, interpersonal communication systems,
transactional services and corporate promotion titles
are not eligible.

For more information on Investissement Québec

programs, visit investQué[Link].

Producing in Canada • 95
Saskatchewan government
incentive programs
Saskatchewan does not offer funding specific to the film industry through
tax credits. However, it offers a number of grant programs administered by
Creative Saskatchewan, in support of the creative industries.

Creative Saskatchewan
Creative Saskatchewan offers grant programs for a variety of creative industry projects, including music, sound
recording, film, television, interactive digital media, craft and visual arts, book publishing and live performing
arts. The investment fund behind such programs prioritizes the marketing and selling of work produced in
connection with Saskatchewan, and advancing the commercial development of individuals, businesses and
associations from recognized Saskatchewan creative industry sectors.

General eligibility requirements for all Creative Saskatchewan grant

and fund applicants
• Applicants may be a corporation or an individual.

• Applicants must be in good standing with Creative Saskatchewan in all respects.

• Applicants must be an active practitioner in one of the creative industries identified under The Creative
Saskatchewan Act.

• Applicants must demonstrate the intent to earn a living within a chosen creative industry, and demonstrate
an ambition to grow its business.

Film and Television Development Grant

Creative Saskatchewan’s Film and Television Development Grant aims to assist qualified Saskatchewan
production companies with the development of eligible projects with the ultimate objective of advancing such
projects into production.

96 • Producing in Canada
Eligibility requirements • Applicant companies must be incorporated in
Saskatchewan or federally, and registered in
• Applicants may be an individual or a corporation Saskatchewan.
• Applicants must be the owner or co-owner of • An applicant company’s head office or
the project, control copyright in the project, and principal place of business must be located in
receive a share of revenue from sales of the project. Saskatchewan, and substantial ownership control
• Applicants must demonstrate that they have the must reside with Saskatchewan residents.
rights to develop, produce, and exploit the property • Applicants must be in good standing in all respects
for a 2-year minimum plus a renewal from date of with Creative Saskatchewan
application.
• Applicants who have secured production funding
• Applicants must have experience as producers of from Creative Saskatchewan in support of a project
commercial film or television, or related experience that has received development funding must
satisfactory to Creative Saskatchewan, and complete development activities and reporting
must demonstrate they possess the necessary prior to the start of principal photography
expertise and resources to complete the proposed
production and arrange for its marketing. Creative Saskatchewan’s financial commitment is
a grant for projects that proceed into production
• Applicants with insufficient experience for the within the province of Saskatchewan. However in the
scope of the project must secure the participation case of (i) dramatic projects, where less than 50% of
of an experienced executive producer prior to principal photography and/or 75% of post-production
applying to Creative Saskatchewan. takes place within the province, and (ii) non-dramatic
• The production company cannot hold a projects, where less than 50 percent of post-
broadcasting licence issued by the CRTC or deal production takes place within the province, applicants
at non-arm’s length with a corporation that holds must repay the development amount committed by
such a licence. Creative Saskatchewan upon the first day of principal
photography.

Producing in Canada • 97
There are four streams available to eligible applicants
under the Film and Television Development Grant:

1. Pre-Development 2. First Draft

The Pre-Development stream supports the financing The First Draft stream assists with the continuing
of third-party costs incurred to develop the project development of projects that have secured
sufficiently to present to broadcasters and other development funds from a relevant market source
financiers. Activities might include writing concept to (e.g., a broadcaster, distributor, pay television or other
outline and creating pitching materials. funding agency) to a minimum of 10 percent of the
development cash budget. Related-party financing
Eligible applicants may apply to Creative will not be considered as a relevant market source.
Saskatchewan for a maximum of CA$5,000 or Examples of development activities supported by this
50 percent of the total development cash budget, stream include, but are not limited to, taking a script
whichever is the lesser. Producer fees are capped treatment to an outline or first draft.
at 20 percent of the base total. No other related
party expenses are eligible in this stream. Exception Non-dramatic projects may apply to create a non-
will be made for full-time employee wages for broadcast demo.
project-specific work. Applicants must demonstrate
The maximum contribution is CA$25,000 or
100 percent copyright ownership, which needs to
50 percent of the total development cash budget for
demonstrate the right to produce the television
this phase, whichever is the lesser.
production or feature film. Applicants and their
parent companies are limited to two Applicants and their parent companies are limited
pre-development grants per fiscal year. to two First or Final Draft Development grants (or
combination thereof) per fiscal year. Subject to
This phase does not require evidence of market
further budget review.
interest and does not have any minimum production
history requirements.

CA$868 Million
Total volume of film and
television production in
Alberta, Saskatchewan,
Manitoba, Yukon,
Nunavut, and Northwest
Territories in 2021/2022.
- Source: Profile 2022, CMPA

98 • Producing in Canada
3. Final Draft Applicants must have at minimum one-hour of
commercially-distributed content (for animation,
The Final Draft stream supports the continuing applicants must have at minimum of one half-hour
development of projects that have secured of commercially-distributed content), created and
development funds from a relevant market source made available to audiences within the past two
to a minimum of 10 percent of the development years (applicant companies must demonstrate
cash budget. Examples of development activities ownership of the property) to be considered eligible
supported by this stream include, but are not limited for this stream. Projects must demonstrate strong
to script polish and preproduction activities. market potential. Co-productions can make up to
The maximum contribution is CA$15,000 or 50% of the development budget. Co-productions
50 percent of the total development cash budget for must demonstrate that a minimum of 50% of the
this phase, whichever is the lesser. copyright is owned by the applicant. Applicants must
demonstrate that they have the rights to develop,
Applicants and their parent companies are limited produce, and exploit the property for a two-year
to two First or Final Draft Development grants (or minimum plus a renewal from date of application.
combination thereof) per fiscal year. Subject to
further budget review. The maximum contribution is CA$40,000 or
75 percent of the total development cash budget
4. Slate Development for this phase, whichever is the lesser. Applicants
and their parent companies are limited to one Slate
The Slate Development stream assists with the
Development stream grant per fiscal year. Producer
development of a minimum of two and a maximum
fees and corporate overhead may not exceed
of five eligible film or television projects in order to
20 percent of the base total.
leverage development financing from other funding
agencies and private sector investment.

Producing in Canada • 99
Feature Film & Television distribution agreement of fair market value and
evidence of a minimum of 50 percent confirmed
Production Grant financing, unless the project budget is more than
CA$1 million, in which case evidence of a minimum
This grant provides financial support to eligible
of 70 percent confirmed financing is required.
applicants for feature film and television productions
The applicable Creative Saskatchewan Production
that have secured a relevant market trigger or
Grant and federal tax credit calculations may be
distribution agreement of fair market value. There
included as part of the confirmed financing.
are two streams within this grant: the Saskatchewan
Stream and the Service Production Stream. • Applications must be received prior to the
completion of principal photography.
Eligibility requirements
• Eligible feature film productions include:
• Feature film productions must be feature-length dramatic feature films, non-dramatic feature
(a minimum of 75 minutes). films, and animated feature films.
• Productions must demonstrate interest from
• Eligible television productions include: dramatic
other agencies or a relevant market trigger(s)
television productions including series, mini-
minimum 20% of the eligible production costs
series, MOW, non-dramatic television productions,
(i.e., a combination of distribution agreement of
animated television productions, lifestyle
fair market value, federal funding agencies etc.)
television production and reality television
• Creative Saskatchewan will consider exceptions
• Projects that have received funding through the
for production companies that have completed
Creative Saskatchewan Micro-Budget Production
a minimum of two commercial productions with
Grant or Web Series Grant programs are ineligible.
a similar degree of financial risk, budget, and
that have been made available to in a meaningful Saskatchewan Stream
way to audiences including on a broadcaster
or subscription service within 24 months of • Eligible applicants may apply for financial support
application date OR financial structures agreed equal to a maximum of 30 percent of all eligible
upon and contracted with Telefilm. Saskatchewan expenditures up to a maximum of
CA$5,000,00 (including goods & services and
• The production company cannot hold a
labour).
broadcasting licence issued by the CRTC or deal
at non-arm’s length with a corporation that holds • Applicants must be the owner or co-owner of the
such a licence. project and, at minimum, control a share of the
copyright proportionate to Creative Saskatchewan’s
• Applicants must receive a producer credit on the
financial participation.
final project.

• Applicants must have experience as producers Service Production Stream

of feature films and/or television productions • Eligible applicants may apply for 25 percent of
or related experience satisfactory to Creative all eligible Saskatchewan expenditures up to a
Saskatchewan, and must demonstrate they maximum of CA$5,000,000 (including goods &
possess the necessary expertise and resources services and labour).
to complete the proposed production and arrange
for its marketing. Applicants with insufficient • There are no copyright ownership requirements for
experience for the scope of the project must the Service Production Stream.
secure the participation of an experienced Bonuses
executive producer prior to applying to
Creative Saskatchewan. For both streams, applicants might be eligible
for the following bonuses, in the form of a grant
• Inter-provincial co-productions and co-ventures
(to a commitment not exceeding a maximum of
are eligible.
40% of eligible Saskatchewan expenditures for
• At the time of submission, applicants must provide Saskatchewan Stream, or a maximum of
written evidence of a relevant market trigger, or 35% for Service Production Stream):

100 • Producing in Canada

• 10% frequent filming bonus (where applicants • Applicants must demonstrate at the time of
complete 3 or more eligible productions per year application that a minimum of 50 percent of all
in Saskatchewan) third-party production financing is contracted (the
Creative Saskatchewan Feature Film and Television
• 5% rural bonus (where majority production takes
Production Grant, and federal and provincial tax
place a minimum 50km outside Regina
credits can be included in this calculation), and all
or Saskatoon)
necessary insurance and performance bonds are
• 5% Saskatchewan post-production bonus (where in place.
majority post-production is taking place in
• The project must be made available in a meaningful
Saskatchewan)
way to target Canadian audiences within two
Sasktel Max Equity Fund years of completion on any platform, including a
Canadian broadcaster or subscription video on
The Creative Saskatchewan SaskTel Max Equity Fund demand platform (as demonstrated by a written
offers financial support to eligible Saskatchewan-based commitment to air the completed project).
independent producers of audiovisual productions.
• Productions receiving funding must achieve 6/10
Creative Saskatchewan may invest in eligible projects
points for Canadian content certification.
that demonstrate significant economic, cultural and
employment benefit to the Saskatchewan industry, • Co-productions must be treaty co-productions
and a high potential of recoupment and profit in the certified by the CRTC.
application. The program is a competitive fund that
• Productions must be closed captioned and have
may provide equity investment in support of eligible
descriptive video.
productions to a maximum of 20 percent of the
approved cash budget. • Applications may be submitted at any stage of
the production or post-production, but must be
Eligibility requirements submitted prior to the completion of the project

• Applicants must be Saskatchewan residents. • Fund contributions can be used for the following
project categories: long form documentary;
• Applicants must have experience as producers
informal education/recreation and leisure; drama
of film, video or digital delivery productions, and
and comedy; music and dance; music video
must demonstrate the company possesses the
programs; general entertainment and human
necessary expertise to complete the proposed
interest
production and associated marketing.

• Applicants must be the owner or co-owner of Market and Export

the project, control copyright and receive a share
Development Grant
of revenues from sales of the project, subject to
commitments to third-party investors, talent and This grant provides support to individuals and
deferring parties. businesses for market access and market
development opportunities intended to improve
• The production company cannot hold a
visibility and generate sales.
broadcasting licence issued by the CRTC or deal
at non-arm’s length with a corporation that holds Eligibility requirements:
such a licence.
• The primary purpose of the project must be
• Applicants must receive sole, or in the case of
commercial intent; it must demonstrate market
co-production, shared and equal stature producer
potential, viability, and demand
credits on the project. Credits, such as associate
producer, co-producer and line producer, do not • Travel, per diems and accommodation expenses
satisfy the requirement. are limited to Saskatchewan residents

• The production company must be incorporated • For film, television and interactive digital media
and registered to conduct business projects, applicants must own a minimum of 50%
in Saskatchewan. of the project copyright and include recoupment
structures that demonstrates a revenue
share position
Producing in Canada • 101
• For budgeted expenses related to promotional professional, creation of marketing materials,
video production, applicants must include a branding, documentation of work (for visual artists),
strong rationale for expenses being incurred website design, social media, and advertising.
out of province. It is the preference of Creative
“Market and Export - Major” Stream
Saskatchewan for expenses to be incurred within
the province. This stream is intended to support larger-scale
• Accommodations are limited to CA$400 per night marketing opportunities. Applicants may apply for
per room, inclusive of all taxes a maximum of CA$25,000 per applicant per fiscal
year (whichever is the lesser); or a maximum of
• If the applicant is not returning to Saskatchewan
CA$50,000 per applicant per 24 months (whichever
after a market event, return travel expenses are
is the lesser). Any funds received through the
capped at the amount of the initial leg of the trip
“Market & Export - Micro Grant” are included in the
• Activities must be in support of project(s) that calculation. Unsuccessful applicants are eligible
would meet the criteria for Creative Saskatchewan to reapply at the next program deadline. Eligible
production grants expenses include engaging services of a publicist
or marketing professional, creation of marketing
• Applicants cannot apply to both grant streams
materials, branding, documentation of work (for visual
(Market & Export - Major or Micro Streams) for the
artists), website design, social media and advertising,
same project
distribution, travel, accommodation, shipping and/
There are two streams available to eligible participants or services required to develop and deliver the
project successfully.
“Market and Export - Micro” Stream

This stream is intended to support smaller-scale Market Travel Grant

marketing opportunities. Applicants may apply for
This grant provides support to individuals and
a maximum of CA$5,000. Applicants are limited
businesses to attend markets and events.
to one Market & Export - Micro Grant per fiscal,
and applicants shall not receive additional Market Eligibility requirements
& Export - Micro Grants through single purpose
companies, parent companies, or other companies • Film, television, and interactive digital media
where they are owner or majority stakeholder. applicants must demonstrate the polished
Unsuccessful applicants are eligible to reapply marketing materials are targeted to the individuals
twice per fiscal. Eligible expenses for this stream and companies they anticipate pitching
include engaging services of a publicity or marketing • Successful applicants may need to bring support
102 • Producing in Canada
 personnel; eligible support personnel for film, per room (Canadian funds), inclusive of all taxes.
television, and interactive digital media applicants If the rate exceeds the amount, only the excessive
are limited to Saskatchewan staff of the applicant amount is disallowed
company
• If the applicant is not returning to Saskatchewan
• The primary purpose of the project must be after the market event, return travel expenses are
commercial intent; it must demonstrate market capped at the amount of the initial leg of the trip
potential, viability, and demand
• Activities must be in support of project(s) that
• Expenses must be directly related to the project would meet the criteria for Creative Saskatchewan
and incurred during the project term for travel, production grants
accommodations, registration, and per diems
Creative Saskatchewan’s contribution will be
• Airfare and event registration may be booked determined by the number of times applicants have
prior to submitting an application to Creative attended each eligible event beginning April 1, 2020.
Saskatchewan Funding is in the form of a grant as follows:

• Travel, per diems, and accommodation expenses • 1-3 times: 50% of the approved project budget or
are limited to Saskatchewan residents CA$5,000 (whichever is lesser)
• Marketing expenses directly related to the activity • 4-5 times: 50% of the approved project budget or
being applied for, no more than 10% of the total CA$3,500 (whichever is lesser)
project budget (only if not covered by another
• 6+ times: 50% of the approved project budget or
Creative Saskatchewan grant)
CA$2,000 (whichever is lesser)
• Publicist fees (must be specific to the event and fall
For more information on Saskatchewan’s film and
within the 10% marketing cap)
television industry, please visit [Link]
• Mileage and per diem amounts must be consistent
with Government of Saskatchewan rates

• Fees for hired performers and support personnel

engaged solely for the purposes of the specific
project

• Phone expenses are capped at a maximum of $50

when traveling outside of Canada

• Accommodations are limited to $400 per night

Producing in Canada • 103

Yukon government
incentive programs
The Government of Yukon has created the following funding programs to
support the territory’s filmmakers. These programs provide economic benefits
and employment opportunities for Yukoners.

Predevelopment Fund technical and financial aspects of the project,

the selection, hiring and firing of the key artists
This fund helps producers develop ideas for a and creative personnel involved in the project, all
professional film, television program, or digital media expenses related to the project, the project bank
project. Assistance under this fund helps attract accounts, and the negotiation of initial agreements
commitments from broadcasters, distributors,
• Production companies in (or related to someone)
or online platforms for further development or
the business of broadcasting or distribution
production. Applicants can receive up to 75% of the
content, or in default with the Government of
eligible costs of their predevelopment budget, up to a
Yukon are not eligible
maximum of CA$15,000. Applicants can only receive
funding from the Predevelopment Fund once per • Projects must not fall under the list of ineligible
project. projects, and must be an idea for a professional
film, television program or digital media project
Eligibility Requirements with an economic benefit to the Yukon

• Production companies must be incorporated in the

Yukon

• Must be registered to conduct business in the

Yukon

• Must be in good standing with the Government of

Yukon Corporate Affairs

• Must be majority owned by Yukon residents

• Must have a Yukon business address

• Must be a production company primarily in the

business of developing and producing professional
film and television content
CA$868 Million
• Must be a for-profit company under Canada’s
Income Tax Act Total volume of film and
• Must have the rights to produce and exploit the television production in
project Alberta, Saskatchewan,
• Must maintain a financial stake in the project Manitoba, Yukon, Nunavut,
• Must have a Yukon resident as the producer, and Northwest Territories in
including responsibility and control over the
project’s development, the creative, artistic,
2021/2022.
- Source: Profile 2022, CMPA

104 • Producing in Canada

Co-productions and creative personnel involved in the project, all
expenses related to the project, the project bank
A Yukon production company in co-production with accounts, and the negotiation of initial agreements
a non-Yukon production company can apply for this
fund. The maximum funding amount is reduced • Production companies in (or related to someone)
proportionately if the Yukon production company the business of broadcasting or distribution
owns less than 51% of the project. content, or in default with the Government of
Yukon are not eligible
Development Fund • Projects must not fall under the list of ineligible
projects, and must be an idea for a professional
This fund is available to professional films, television
film, television program or digital media project
programs, or digital media projects where an
with an economic benefit to the Yukon
applicant has a distribution commitment from a
broadcaster, distributor, or online platform. Applicants Co-productions
must demonstrate market demand for the project
A Yukon production company in co-production
in the form of a license agreement or a letter of
with a non-Yukon production company can apply
interest. Applicants can receive up to 50% of the
for this fund. If the Yukon production company
costs in the development budget, up to a maximum
owns less than 51% of the project, the maximum
of CA$40,000. Applicants can only receive funding
funding amount is reduced proportionately. A Yukon
from this fund once per project.
production company must have a share of ownership
In addition to funding, applicants can apply for letters and producer functions that is at least equal to the
of commitment letters known as “comfort letters”. share of funding provided by the Government of
Applicants must show that at least 30% of funding is Yukon.
in place, not including the amount requested from
this fund. Media Production Fund
Eligibility Requirements This fund provides applicants with funding to
produce a professional film, television program, or
• Production companies must be incorporated in the
digital media project. Applicants must demonstrate
Yukon
market demand for the project in the form of a license
• Must be registered to conduct business in the agreement or a letter of interest. A minimum of 3
Yukon (different) Yukoners in key positions is required (i.e.,
heads of department or a senior role on production).
• Must be in good standing with the Government of
Applicants can receive a minimum rebate of 25% of
Yukon Corporate Affairs
approved Yukon spend.
• Must be majority owned by Yukon residents
The 25% rebate increases:
• Must have a Yukon business address
• By 2% for each Yukon resident filling a key position,
• Must be a production company primarily in the
beyond the required minimum of 3, to a maximum
business of developing and producing professional
of 10%; and,
film and television content
• Up to 5% for projects where there’s Yukon
• Must be a for-profit company under Canada’s
ownership.
Income Tax Act
The maximum rebate is 40% of Yukon spend.
• Must have the rights to produce and exploit the
Applicants can only receive funding from this fund
project
once per project.
• Must maintain a financial stake in the project
Eligibility requirements
• Must have a Yukon resident as the producer,
including responsibility and control over the • Production companies must be incorporated in
project’s development, the creative, artistic, the Yukon
technical and financial aspects of the project, • Must be registered to conduct business in
the selection, hiring and firing of the key artists the Yukon
Producing in Canada • 105
• Must be in good standing with the Government of Yukon non-profit organizations
Yukon Corporate Affairs
A Yukon non-profit organization can apply for funding
• Must have a Yukon business address to offer training programs to Yukoners. The programs
• Must be a production company primarily in the must increase opportunities for Yukoners to work in
business of developing and producing professional the film, television, and digital production industries.
media content An organization can receive 75% of its approved cash
expenses, up to a maximum of CA$25,000. No more
• Must be a for-profit company subject to Canada’s than 50% of the total budget can be travel costs.
Income Tax Act
Eligibility requirements
• Must have the rights to produce and exploit the
project • Must be a Yukon resident, and
• Must maintain a financial stake in the project • Must be registered Yukon non-profit organizations
• Projects must not fall under the list of ineligible • Applicants can apply as a Yukon resident if they’ve
projects, and must be a professional film, television lived in the Yukon for at least 1 year before applying
program or digital media project with an economic
• Yukon non-profit organizations must be registered
benefit to the Yukon
and in good standing with the Government of
• Must not be (or related to someone) in the business Yukon Corporate Affairs, have a mandate to grow
of broadcasting or distributing content, or in the Yukon’s media production industry, and have a
default with the Government of Yukon record of offering training programs to Yukoners
• Returning series are eligible and can apply once Eligible Projects
per year
• Post-secondary coursework
In addition to funding, applicants can apply for letters
of commitment letters known as “comfort letters”. • Training offered by a qualified training provider,
Applicants must show that at least 30% of funding is including mentorship
in place, not including the amount requested from • Training in key positions on a media production
this fund.
• Training with an established production company
Training Fund • A workplace internship with an established
production company
Yukon producers or technicians who wish to develop
their skills to create films, television programs, and • Short-term training programs for Yukoners involved
digital content can apply to this fund for training in: in media production

• Developing Inelligble Projects

• Producing • Attending conferences and annual general

meetings
• Post-producing and
• Training typically provided by an employer
• Marketing
• General training that is not specific to the
Applicants can receive funding equal to 75% of
development, production, post-production or
approved cash expenses, up to a maximum of
marketing of film, television, or digital content, such
CA$10,000. No more than 50% of the total budget
as first-aid training
can be travel costs.

106 • Producing in Canada

Union and
guild-related issues

SAG-AFTRA’s Global Rule One

The “Global Rule One” (GR1) of the Screen Actors Guild - American Federation of Television
and Radio Artists (SAG-AFTRA) extends the territoriality of the SAG-AFTRA collective
agreement into Canada. As a consequence, many SAG-AFTRA members will not agree to
render services in Canada unless they are engaged on SAG-AFTRA terms and minimums.

While the imposition of GR1 initially created many problems for foreign productions
shooting in Canada, the introduction of certain exemptions by SAG-AFTRA, the support of
the Canadian actors’ union (ACTRA), and the establishment of an accepted protocol, have
resulted in a fairly streamlined process.

Under the current rules, a foreign producer typically engages SAG-AFTRA members
through a SAG-AFTRA signatory company and then lends the services of those SAG-AFTRA
members to the local Canadian production company. In situations where the foreign
producer is not a SAG-AFTRA signatory, and when the production is not primarily financed
by an American company (e.g., a “service production”), the Canadian production services
company will become a signatory to ACTRA and sign a memorandum with SAG-AFTRA for
SAG-AFTRA members. The SAG-AFTRA members will work under the SAG-AFTRA rules, but
their agreement will fall under ACTRA jurisdiction. The Canadian producer will require the
SAG-AFTRA member to sign the ACTRA “faceplate” contract and will attach the long form
SAG-AFTRA agreement as a rider. In instances where the production is primarily financed
by an American company (e.g., a service production) SAG-AFTRA will generally require the
Canadian production company to become a signatory to the SAG-AFTRA basic agreement,
which will apply solely to SAG-AFTRA members engaged on the production, and ACTRA’s
jurisdiction will govern for all other performers engaged.

Director’s Guild of Canada

A production company becomes a signatory to the Directors Guild of Canada (DGC) by
signing a document called Bargaining Authorization and Voluntary Recognition Agreement.
This Agreement is between the production company, parent company and the DGC for the
specific production. The parent does not become a signatory for all future productions by
signing the Agreement; it only applies to the specific production.

Once the production company becomes a DGC signatory, it must hire DGC members for
all job classifications covered by the DGC Basic Agreement (the DGC and DGA cover similar
job classifications).

In the event the director on the production is a Directors Guild of America (DGA) member,
the DGA and the DGC have a reciprocal agreement that DGA directors may work in a DGC
jurisdiction under the DGA Agreement. The DGA application is more extensive than the DGC.

Producing in Canada • 107

Despite the reciprocal agreement, the producer is still The WGA member’s contract shall be subject to all
required to obtain prior approval from the DGC. The the terms of the WGC IPA, except for the following:
director needs to become a permittee by completing
• The minimum compensation payable to a WGA
a work permit application for non-Canadians. The
member shall be that under the WGA Basic
DGC also requires a resume be attached to the
Agreement, which is generally higher than the WGC.
permit application. A permit fee of CA$200 per week
of engagement during principal photography will • The producer will have to pay the WGA
be deducted from gross remuneration and remitted fringes (including pension, health and welfare
by the producer to the DGC. The fringe benefits will contributions) as such writer would otherwise have
be calculated and paid pursuant to the DGA Basic received under a straight-WGA agreement, which
Agreement. The DGC may refuse the permit if it is a shall be in lieu of the insurance and retirement
first-time or inexperienced director. contributions to which a writer engaged under a
WGC contract would otherwise be entitled
Writers Guild of Canada Please note that under the WGC IPA, the writer does
Whether the Writers Guild of Canada (WGC) or the not assign copyright in and to the screenplay, it is only
Writers Guild of America (WGA) has jurisdiction over a licence for a specific use.
a given production is determined by the location of
For more information regarding the interplay between
the producer. If a Canadian producer is engaging a
the Canadian and American talent guilds, please read
WGA member, the agreement will fall under the terms
“The Cross-Border Challenge: Navigating American
of the WGC Independent Production Agreement
and Canadian Talent Guilds” by Jayme Alter.
(WGC IPA), and the Canadian producer must become
signatory to the WGC and sign a side letter with the
WGA. The WGA writer then must obtain a Working
Rule 8 Waiver from the WGA.

108 • Producing in Canada

Tax-related issues
Withholding taxes – general Treaty exemptions
The Canada Revenue Agency (CRA) is responsible Employee exemption
for the enforcement and collection of income taxes
Non-resident employees may be exempt from
levied under the Income Tax Act (Canada).
Canadian taxes if Canada has a tax treaty allowing
The Income Tax Act generally requires any person this exemption with the country in which the
who pays for services provided by a non-resident employee is resident. For example, employees who
in Canada, even a non-resident payer, to withhold are resident in the United States will not be subject to
and remit taxes from the payment. Payments to Canadian tax if they:
employees are subject to withholding at graduated
• Earn less than CA$10,000 in Canada2, or
payroll rates. Payments to behind-the-scenes (BTS)
independent contractors are subject to 15 percent • Were present in Canada for less than 183 days in
withholding tax if the independent contractor is a the calendar year, and the remuneration is not
non-resident. Payments to actors or their loan-out borne by a Canadian resident or non-resident with
companies are subject to withholding tax at a fixed base in Canada.
23 percent1. The actor can elect to file a Canadian
Employees who qualify for this exemption must
tax return and pay tax at ordinary marginal rates on
submit an application to the CRA for a letter of
the income, in which case the 23 percent amount is
authority to reduce or eliminate withholding taxes.
treated as a prepayment on account of the tax. If an
independent contractor (whether BTS or on-camera) BTS waiver
is a Canadian resident, no withholding is required.
The CRA has developed administrative guidelines
whereby it will issue a tax treaty-based “waiver” upon
application by a non-resident BTS contractor who
is resident in a treaty country3. The guidelines are
intended to establish that the non-resident is entitled
to a tax exemption pursuant to a tax treaty between
Canada and the non-resident’s country of residence.
Where a waiver is obtained, the payer is not required
to withhold taxes.

2 This amount is increased to CA$15,000 for US resident actors

earning employment income in Canada.

1 Note that the Canada-US treaty reduces the withholding tax rate to 3 US resident actors may qualify for a waiver under these guidelines
10 percent on the first CA$5,000 paid to an independent contractor, only if their gross income earned in Canada in the calendar year is
whether for BTS or on-camera services. less than CA$15,000.

Producing in Canada • 109

Contacts

Toronto

Jayme Alter Ken Dhaliwal Mark Jadd Karin Kazakevich

D+ 1 416 863 4445 D+ 1 416 863 4651 D+ 1 416 863 4700 D+ 1 416 863 4432
[Link]@[Link] [Link]@[Link] [Link]@[Link] [Link]@[Link]

Catherine Piccioli Jim Russell David Steinberg Bob Tarantino

D +1 416 863 4755 D+ 1 416 863 4652 D+ 1 416 863 4653 D+ 1 416 863 4696
[Link]@[Link] [Link]@[Link] [Link]@[Link] [Link]@[Link]

Vancouver Ottawa

Juliet Smith Margot Patterson

D+ 1 604 443 7135 D+ 1 613 783 9693
[Link]@[Link] [Link]@[Link]

Montréal

Gentiane Joyal Joey Mastrogiuseppe Jacqueline Rowniak

D+ 1 514 878 5826 D+ 1 514 878 5817 D+ 1 514 673 7424
[Link]@[Link] [Link]@[Link] [Link]@[Link]

110 • Producing in Canada

About Dentons

Local depth, national strength, international reach

As part of the renowned global team, Dentons has an established history in all
six of Canada’s key economic centers—Calgary, Edmonton, Montréal, Ottawa,
Toronto and Vancouver. With roots reaching as far back as 1839 in Canada, we
are truly “in and of the community,” providing our clients with our leading and
seamless legal services in common and civil law, in English and French.

Dentons is proud to act for of a wide variety of clients To complement our legal services, Dentons is
in Canada, ranging from startups to industry icons in committed to fostering an inclusive environment
both the public and private realms, and is positioned where our people respect and learn from our
to support the success of our domestic Canadian collective skills, unique perspectives, talents and
clients and the vast array of international players differences while making a positive impact across
that are investing and developing their presence in our communities. The quality of our work is a direct
the Canadian economy. More than 500 lawyers and reflection of our ability to leverage our talent to
professionals across our Canadian offices provide provide you with innovative, client-focused solutions
clients with on-the-ground legal talent and leading to your complex business needs. As a testament to
experience across many industries, including key our continued dedication, Dentons is proud to be
sectors of the Canadian economy: named one of Canada’s Best Diversity Employers
(2011-2022); one of Stonewall’s Top Global Employers
• Banking and Finance
(2022) for LGBT inclusion; one of British Columbia’s
• Communications Top Employers (2017-2021); one of Canada’s Top
Employers for Young People (2022); and recognized
• Construction
at the Chambers Diversity & Inclusion Awards: North
• Energy America (Canada, 2021).

• Infrastructure and PPP

• Insurance and reinsurance

• Media, Entertainment and Sports

• Mining

• Real Estate

• Technology

Producing in Canada • 111

Our media
Global Media and
Capabilities

film industry experience

Other Dentons Offices

Film industry experience only
Media industry experience only
Both Media and Film industry experience

112 • Producing in Canada

Producing in Canada • 113
ABOUT DENTONS

Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization
by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed
to inclusion, diversity, equity and sustainability, we focus on what matters most to you.

[Link]

© 2023 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates.
This publication is not designed to provide legal or other advice and you should not take, or refrain from taking, action based on its content.
Please see [Link] for Legal Notices.

CSBrand-31037-Producing-In-Canada-21 — 15/11/2023

114 • Producing in Canada