Manitoba film and video production tax credit
A change to the Manitoba film and video production tax credit has been announced. See what's new for Manitoba corporations.
Manitoba Film and Music reviews all tax credit applications and will issue a tax credit certificate to a corporation that produces an eligible film in the province. The credit is fully refundable, but must first be applied against total taxes payable.
Credit based on labour costs
The credit is equal to 45% (65% with bonuses) of eligible salaries paid for work performed on an eligible film.
The percentage of eligible salaries paid to non-residents for work performed in Manitoba is:
- 30% of eligible salaries paid to Manitobans when there are two Manitoba trainees for each eligible non-resident in the film production technical crew
- 10% of eligible salaries paid to Manitobans when there is one Manitoba trainee for each eligible non-resident
The following bonuses are available:
- a 10% frequent filming bonus on the third eligible film, for corporations that produce three eligible films in two years. This also applies to serial productions
- a 5% rural filming bonus on eligible salaries paid for work performed in Manitoba on productions where at least 50% of filming days take place at least 35 kilometres outside of Winnipeg
- a 5% Manitoba producer bonus on eligible salaries where a Manitoba resident receives credit as a producer on an eligible film
The frequent filming bonus is temporarily paused for two years due to the COVID-19 pandemic and the effect of public health orders on production activity. All companies that were eligible for the bonus on March 31, 2020, will have that status stay in effect until March 31, 2022, at which point their frequent filming status resumes. For production companies that continued to produce, their time period continues as normal.
Credit based on production costs
Instead of claiming the credit based on labour costs only, corporations may elect to claim a 30% tax credit based on production costs incurred for labour, goods, and services provided in Manitoba that are directly attributable to the production of an eligible film.
For productions for which principal photography begins after May 31, 2020, the Manitoba production company bonus of 8% is added to the 30% cost-of-production credit, increasing the total cost-of-production credit to 38%. The production company must meet the following two criteria:
- own, otherwise than by way of security, voting shares of the corporation
- receive credit as
- a producer
- a co‑producer, or
- an executive producer of the film
The cost of production credit also includes eligible accommodation expenditures of up to $300 (including tax) per night for a residence or a hotel room in Manitoba.
Claiming the credit
For each eligible film, file the following with your return for the tax year:
- a Certificate of Completion (if the production was completed in the tax year), or an Advance Certificate of Eligibility (if the production was not completed in the tax year), issued by Manitoba Film and Music
- a completed copy of Schedule 388, Manitoba Film and Video Production Tax Credit
- all the additional documents listed on the last page of Schedule 388
If you file your return electronically, see T2 Attach-a-Doc.
If you file a paper return, send the return and required attachments to your tax centre.
Corporations may file Form T2029, Waiver in Respect of the Normal Reassessment Period or extended reassessment period, to extend the application for a Certificate of Completion with the Manitoba certifying authority by 18 months.
On line 620 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit you are claiming in the current year.
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