Tax Credits Flashcards
What does CAVCO do?
Certifies domestic tv/film and international treaty co-productions applying for canadian tax credits (provided by CPTC)
If your project was funded by Canadian grants - they check whether your project will be Canadian ENOUGH
What are 4 things CAVCO looks at to certify whether your content will be “Canadian enough”?
- Either the director or writer has to be canadian
- at least one of 2 lead performers has to be canadian
- 6/10 points
- at least 75% of service costs and post must be spent in canada
Which fees are included in ‘service costs’?
Producer / key creative personnel payments
Accounting and legal payments
Insurance and financing costs (bank fees)
Indirect expenses not related to the production (medical fees from tests needed for insurance, wire transfer fees, etc)
What does CAVCO require of a canadian production company that CRTC doesn’t?
The Canadian production company must be the copyright owner for all commercial purposes for min. 25 years
The project must be shown in CAD within 2 years after completion
What does CRTC do?
Licenses Canadian broadcasters and determines how much of a licensee’s schedule must be reserved for Canadian content.
Can a non-canadian producer apply for CAVCO or CRTC?
No
What are the CRTC requirements?
- All producers canadian
- 6/ 10 points
- 75% of service / post fees are cad
Briefly describe the 3 major exceptions for CRTC qualification
- International Co-productions:
- 5 / 10 points
- 50% of service / post fees are cad
- Cad director OR writer AND 1/2 leads
*make sure this works for other countries point systems / rules
- TV series: 60% of episodes have to average at 6/10 points
- Production packages: any minority cad participants don’t have to meet the point system
(co-productions can mean 2+ sources, so let’s say one canadian company gives 40%, and other international companies pitch smaller percentages - including another minority canadian participant - that minority Canadian involvement doesn’t have to meet the point system)
What’s the federal tax credit for canada? Which part of the budget can it be applied?
20-25% of labor expenditure
*drop expectation a few % points so you’re not screwed if you don’t get the number you’re expecting
What’s the provicinal tax credit for canada? Which part of the budget can it be applied?
30-35% of labor expenditure
Which province is the best for provincial film tax credits?
Newfound land
Name 3 things you can do to boost your provincial tax credits
10% boost if you shoot entirely outside GTA, or 80% outside GTA IF you have 5 location days in ontario (or for tv series: number of episodes = ontario location days)
Regional Bonus: wholly animated films with 85% of key animation done IN ontario OUTSIDE GTA
When should you apply for tax credits?
AFTER post - your post people might also be cad
How long does it typically take to get your tax return?
12-18 months
Describe the point system for CRTC
CAD
- Director - 2 points
- Screenwriter - 2 points
- 1st and 2nd lead - 1 point each
- PD OR Art Dir. - 1 point
- DP (or if no DP - cam op) - 1 point
- Music composer - 1 point
- Picture editor - 1 point
What are the CRTC point requirements from the following grant agencies
a) Telefilm
b) Rogers
c) CMF
a) Telefilm: 8/ 10 points
b) Rogers: 6/10 points
c) CMF: 10/10 points (TV)
While waiting for your tax credit, where you can you apply for interim financing?
- Rogers Telefund
- Bank
- Private Investor (if possible, incentivize them w tax return)
Name the perks and cons of using rogers telefund for gap financing
NO setup fee and low interest
Lots of paperwork
Which special tax credit can 1st time producers get?
40% IF budget is over $250K
What can you do ON the budget to increase tax return
Include crew kit fees in their labor fee
What must a cad production company have to be eligible for ontario tax credits?
- files for ontario tax return
- permanent office in ontario
- producer of production must have been an Ontario resident for tax purposes at the end of both (two) calendar years prior to commencement of principal photography
What must a cad PROJECT / production have to be eligible for ontario tax credits?
- 6/10 points
- predominantly shot in ontario *exceptions
- 75% of total final costs in ontario
