Canadian Film or Video Production Tax Credit Program
The primary objective of the Canadian Film or Video Production Tax Credit (CPTC) is to encourage Canadian programming and to stimulate the development of an active domestic independent production sector. The CPTC program gives a tax credit to qualified corporations producing Canadian film or video productions. Canadian control requirements ensure that the incentive is available only to Canadian-controlled companies.
The CPTC program gives a refundable tax credit of 25% of qualified labour expenditures by a qualified corporation for the production of a Canadian film or video production. The qualified labour expenditures cannot be more than 60% of production cost, net of any assistance. The maximum credit available is therefore limited to 15% of production cost net of assistance. You cannot claim the CPTC for a production that gets a benefit under the Film or Video Production Services Tax Credit Program.
Topics about CPTC Program
The CPTC program is jointly administered by the Department of Canadian Heritage, through the Canadian Audio-Visual Certification Office (CAVCO), and by the Canada Revenue Agency (CRA).
The role of the CAVCO
The CAVCO is responsible for:
- certifying that the production is a Canadian film or video production (CFVP); and
- issuing certificates that allow Canadian producers to claim the CPTC.
The role of the CRA
The CRA verifies the qualified labour expenditures used in determining the CPTC. We are responsible for:
- helping CPTC claimants;
- interpreting and applying section 125.4 of the Income Tax Act and all other provisions in the Act and the Income Tax Regulations that may have an impact on the CPTC;
- reviewing or auditing CPTC claims within a reasonable time frame;
- assessing the corporation's T2 income tax return; and
- issuing timely refund cheques.
As co-administrator of this program, and in accordance with our mandate, we are responsible for ensuring that corporations claiming this tax credit are qualified corporations and that the amounts claimed comply with the Act and the Regulations.
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