Entertainment and Media Tax Clip: Ontario enhances Production Services Tax Credit (July 3, 2009)

The Ontario Production Services Tax Credit is a 25% refundable tax credit available to domestic- and foreign-based production companies that produce film and television productions in Ontario.

For expenditures incurred after June 30, 2009, Ontario proposes to broaden the expenditures eligible for the 25% credit to include production costs incurred in the province such as qualifying labour and the purchase or rental of qualifying tangible properties (e.g., equipment and studio rentals).

PricewaterhouseCoopers Comments
Film and video producers will welcome this change to keep the tax credits in Ontario competitive with those offered in Quebec. Industry research estimates that film and television production in Ontario generates $2 billion annually for the province's economy. This and other recent enhancements (see Entertainment and Media Tax Clip: Ontario proposes to make enhanced film and television credits permanent) are intended to help Ontario continue to attract film and television productions.