Tax Incentives – Adjustments to the Refundable Tax Credit for Film Production Services
In order to further promote the shooting of foreign productions in Québec and foster investment in infrastructure and equipment, the tax legislation will be amended as follow:
1. Increasing the rate of the basic tax credit
The tax legislation will be amended to increase the rate of the basic tax credit from 20% to 25% of the amount of its eligible production costs incurred, for that year, in respect of a qualified production.
2. Applying a 65% rule to contracts relating to computer-aided special effects and animation
The tax legislation will be amended to provide that only 65% of the portion of the cost of a contract with a service provider for computer-aided special effects and animation will be considered in calculating the basic tax credit and the increase for special effects.
Application date
These changes will apply in respect of a qualified production for which an application for an approval certificate will be submitted to the SODEC:
- after the day of the budget speech, if the SODEC deems that work on the production was not sufficiently advanced on the day of the budget speech;
- after May 31, 2024, in all other cases.
More specifically, any production that submits an application for an approval certificate between March 13 and May 31, 2024 and whose activities are deemed sufficiently advanced by SODEC will be entitled to the rates that were in effect prior to the budget speech.
For SODEC to consider a file to be sufficiently advanced, the following elements must be present upon application for an approval certificate:
- Synopsis
- Complete chain-of-title documentation
- Statement regarding the actual ownership of copyright
- Statement relating to the official representative
- Total budget summary
- Detailed budget of expenditures in Québec
- Production schedule
SODEC wishes to reiterate that for your file to be examined, it is imperative that you include all of the required documents when submitting your application via our secure electronic filing portal, SOD@ccès.
To ensure that you get a confirmation notice that the complete version of your file was received prior to the end of your fiscal year, we recommend that you submit your application as soon as your project is finalized. Doing so will also ensure that your application is processed in a timely manner allowing you to submit your file to Revenu Québec.
We recommend that you check the Web page regarding the Refundable Tax Credit for Film Production Services. It includes updated documentation such as lists of the documents required, templates and forms to use, and guidelines regarding eligibility criteria.
Information:
Mesures.fiscales@sodec.gouv.qc.ca
