Ontario Film & Television Tax Credit

Overview of the Ontario Film & Television Tax Credit program:

The OFTTC is a refundable tax credit based upon eligible Ontario labour expenditures incurred by a qualifying production company with respect to an eligible Ontario production. The OFTTC is generally “harmonized” with the Canadian Film or Video Production Tax Credit.

Benefits of the Ontario Film & Television Tax Credit program:

• The OFTTC offers a 35% credit on eligible Ontario labor costs for qualifying productions. First-time producers get a 40% rate for the initial $240,000 of such expenditures. Productions filmed entirely outside the Greater Toronto Area (GTA) or with most location days outside the GTA get a 10% bonus. Fully animated works with 85% of key animation created outside the GTA also earn this bonus.

Eligibility criteria of the Ontario Film & Television Tax Credit program:

• A qualifying production company is a Canadian corporation that is Canadian-controlled, has a permanent establishment in Ontario, and files an Ontario corporate tax return. In addition, the individual producer of the production must have been an Ontario resident for tax purposes at the end of both of the two calendar years prior to the commencement of principal photography.
• An eligible Ontario production is a production which:
• Has six Canadian content points (unless it is an official treaty co-production)
• Is predominantly shot and posted in Ontario (Note: There are exceptions for documentaries, interprovincial co-productions and international treaty co-productions)
• Spends at least 75% of its total final costs on Ontario expenditures
• If for television, is suitable for a minimum 30-minute time slot (except childrens programming)
• Where principal photography commenced before November 1, 2022, has an agreement in writing with an Ontario-based, Canadian distributor or a CRTC-licensed broadcaster to be shown in Ontario within two years of completion (broadcast must occur between 7:00 p.m. and 11:00 p.m., except for childrens programming)
• Where principal photography commenced on or after November 1, 2022, the production was made for commercial exploitation by one or more of the following means:
• Theatrical distribution: productions shown commercially in cinemas;
• Television broadcast: productions made available via traditional television
• Broadcast in a scheduled timeslot; or,
• Alternative means: productions made available online (download or
• Streaming), by video-on-demand, or on the physical medial (e.g., DVD)
• Where principal photography commenced on or after November 1, 2022, has an agreement in writing, for consideration at fair market value, to have the production shown in Ontario within two years after it is completed. The entity with whom the agreement must be made differs depending on the means of commercial exploitation:
• For productions distributed theatrically, the agreement must be with a
• Canadian distributor having a permanent establishment in Ontario;
• For productions broadcast on television, the agreement must be with a
• Canadian broadcaster;
• For productions made available by alternative means, the agreement must
• Be with an entity that makes film or television productions available for
• Viewing by the public. Note that this entity is not required to be Canadian so
• Long as the production is made available for viewing in Ontario. However,
• The distribution rights for the production can only be exploited by a
• Canadian corporation for two years after the production is completed.
• Is not in an excluded genre (such as news or current affairs, talk shows, game shows, sports shows, awards shows, fundraising shows, reality television)
• Where principal photography began after August 24, 2023, there is a screen credit that includes acknowledgment of Ontario tax credit support in the productions end credits.