Tax Credit for Multimedia Titles
The purpose of this tax measure is to encourage the production of multimedia titles in Quebec. It enables eligible producers to obtain a refundable tax credit of a maximum of 37.5% of qualified expenditures.
Eligible multimedia titles
- Most titles produced for commercial distribution purposes, as well as commissioned products.
- Titles must be produced in an electronic medium, be run using software that supports interactivity and present, in significant proportions, at least three of the following four types of data: text, sound, still images, moving images. Note that video footage will be considered one multimedia component only.
- Related titles such as digital animation films tied to an eligible multimedia title produced by your corporation. However, the labour expenditure related to the principal multimedia title with which the related title is associated must be at least $1 million.
Eligible production work
- At the production stage, all work necessary for the production of the multimedia title, from design to perfecting of the final version ready for marketing purposes.
- At the marketing stage, work done during the 36 months following the date the final version is perfected.
Eligible labour expendituresExpenditures must be incurred by the producer for eligible production work. Eligible labour expenditures include all of the following amounts:
- Salaries and wages paid to eligible employees;
- The portion of amounts paid to a sub-contractor having a non-arm's length relationship with the multimedia producer for execution of eligible production work performed by employees of the subcontractor in a facility located in Quebec;
- 50% of amounts paid to a subcontractor having an arm's length relationship with the multimedia producer for execution of eligible production work in Quebec.
Eligible title categoriesFor the purposes of this tax credit, there are two categories of eligible multimedia titles:
- Category 1: Titles produced without an order (i.e. not commissioned) and intended to be marketed to a wide audience under a structured marketing plan;
- Category 2: Other multimedia titles.