Quebec Refundable Film and Television Production Tax Credit
The tax credit for Quebec film productions is available to a production company for eligible expenditures that it incurs and pays for the production of a Quebec film as defined by the Regulation respecting the recognition of films as Québec films. This refundable tax credit is administered jointly by Revenu Québec and the Société de développement des entreprises culturelles (SODEC).
Revenu Québec determines the eligibility of corporations for the tax credit, sets the amount of the credit and effects payment of it.
SODEC determines the eligibility of productions for the tax credit. A production company that wants to receive the tax credit must meet the following conditions, among others:
- It must not be controlled by one or more persons not residing in Quebec at any time in the year or the 24 months preceding the said year;
- It must have an establishment in Quebec; and
- It must operate a film or television production business in Quebec.
To receive the tax credit, the corporation must first have its production recognized by SODEC as a Quebec film production under the Regulation respecting the recognition of films as Québec films.
The tax credit generally corresponds to 29.1667% of qualified labour costs incurred as at December 31, 2008, and 35% of qualified labour costs incurred from January 1, 2009, to produce the film. In addition, labour costs giving rise to this tax credit may not exceed 50% of the film’s production costs, such that the tax assistance may not exceed 14.58335% of such costs as at December 31, 2008, and 17.50% from January 1, 2009.