43.5 (1) A corporation that is a qualifying production company for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable under this Part for the taxation year, after making all deductions claimed under sections 39, 40, 41, 43, 43.3 and 43.4 for the taxation year, an amount not exceeding the amount of its Ontario film and television tax credit for the taxation year.  1996, c. 24, s. 27; 1996, c. 29, s. 50; 2004, c. 16, s. 2 (2). Same (2) A corporation that is a qualifying production company for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV of the Act an amount not exceeding the amount by which its Ontario film and television tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Amount of tax credit (3) The amount of a qualifying production company’s Ontario film and television tax credit for a taxation year is the sum of the company’s eligible credits for the taxation year in respect of eligible Ontario productions.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Eligible credit, first-time production (4) A qualifying production company’s eligible credit for a taxation year in respect of a first-time production for which principal photography commences before November 1, 1997 is the lesser of, (a) the sum of, (i) 30 per cent of the lesser of, (A) the amount by which $240,000 exceeds the company’s qualifying labour expenditure, if any, for the production for the previous taxation year, and (B) the company’s qualifying labour expenditure for the taxation year for the production, and (ii) the sum of, (A) 15 per cent of the amount by which the company’s qualifying labour expenditure for the taxation year in respect of the production exceeds the lesser of the amounts determined under sub-subclauses (i) (A) and (B), multiplied by the ratio of the company’s pre-May 7, 1997 Ontario labour expenditure for the taxation year in respect of the production to the company’s Ontario labour expenditure for the taxation year in respect of the production, and (B) 20 per cent of the amount by which the company’s qualifying labour expenditure for the taxation year in respect of the production exceeds the lesser of the amounts determined under sub-subclauses (i) (A) and (B), multiplied by the ratio of the company’s post-May 6, 1997 Ontario labour expenditure for the taxation year in respect of the production to the company’s Ontario labour expenditure for the taxation year in respect of the production; and (b) the amount by which, (i) the amount certified under subsection (9) in respect of the production, exceeds, (ii) the sum of all amounts in respect of the production that were deducted from tax under this section for a prior taxation year or were deemed by this section to be paid on account of tax payable under this Act for a prior taxation year.  1996, c. 24, s. 27; 1997, c. 43, Sched. A, s. 19 (1); 1998, c. 5, s. 13 (1, 2); 2004, c. 16, s. 2 (2). Eligible credit for first-time production (4.1) A qualifying production company’s eligible credit for a taxation year in respect of a first-time production for which principal photography commences after October 31, 1997 is the sum of the amounts determined under subsections (4.2), (4.3) and (4.3.1) in respect of the production.  2008, c. 7, Sched. E, s. 5 (1). Same, expenditures incurred before 2005 (4.2) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company’s qualifying labour expenditure for the production that relates to expenditures incurred before January 1, 2005: 1. 30 per cent of the lesser of, i. the amount, if any, by which $240,000 exceeds the total of the company’s qualifying labour expenditures for the production for previous taxation years, and ii. the company’s qualifying labour expenditure for the taxation year for the production. 2. 20 per cent of the amount, if any, by which the company’s qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii. 3. If the production is a regional Ontario production, 10 per cent of the company’s qualifying labour expenditure for the taxation year for the production incurred after May 2, 2000.  2008, c. 7, Sched. E, s. 5 (2). Same, expenditures incurred after 2004 and before 2008 (4.3) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company’s qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2004 and before January 1, 2008: 1. 40 per cent of the lesser of, i. the amount, if any, by which $240,000 exceeds the sum of, A. the total of the company’s qualifying labour expenditures for the production for previous taxation years, and B. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.2) for the production for the taxation year, and ii. the company’s qualifying labour expenditure for the taxation year for the production. 2. 30 per cent of the amount, if any, by which the company’s qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii. 3. If the production is a regional Ontario production, 10 per cent of the company’s qualifying labour expenditure for the taxation year for the production.  2008, c. 7, Sched. E, s. 5 (3). Same, expenditures incurred after 2007 (4.3.1) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company’s qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2007 and in a taxation year that ends before January 1, 2009: 1. 40 per cent of the lesser of, i. the amount, if any, by which $240,000 exceeds the sum of, A. the total of the company’s qualifying labour expenditures for the production for previous taxation years, and B. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.3) for the production for the taxation year, and ii. the company’s qualifying labour expenditure for the taxation year for the production. 2. 35 per cent of the amount, if any, by which the company’s qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii. 3. If the production is a regional Ontario production, 10 per cent of the company’s qualifying labour expenditure for the taxation year for the production.  2008, c. 7, Sched. E, s. 5 (4). Exception, tax credit rate (4.4) If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in paragraph 1, 2 or 3 of subsection (4.3.1), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that paragraph.  2005, c. 28, Sched. D, s. 10 (1); 2008, c. 7, Sched. E, s. 5 (5). Exception, first-time production (5) Subject to subsection (5.1), if the total amount of the qualifying labour expenditures for a first-time production is $50,000 or less, the total amount of all eligible credits in respect of the production is the lesser of the total amount of the qualifying labour expenditures for the production and $15,000.  2000, c. 42, s. 16 (2); 2004, c. 16, s. 2 (2). Same, regional Ontario production (5.1) If the total amount of the qualifying labour expenditures for a first-time production that is a regional Ontario production is $50,000 or less, the total amount of all eligible credits in respect of the production for a taxation year ending after May 2, 2000 is the lesser of, (a) the total amount of the qualifying labour expenditures for the production; and (b) the amount calculated under subsection (5.2).  2000, c. 42, s. 16 (2); 2004, c. 16, s. 2 (2). Same (5.2) The amount referred to in clause (5.1) (b) is the amount calculated using the formula, [ $20,000 × ( A / B ) ] + [ $15,000 × ( C / B ) ] in which, “A” is that portion of the company’s expenditures, if any, incurred in the taxation year and after May 2, 2000 that are included in the amount of the company’s Ontario labour expenditure for the taxation year in respect of the production, “B” is the company’s total Ontario labour expenditure for the taxation year, and “C” is that portion of the company’s expenditures, if any, incurred in the taxation year and before May 3, 2000 that are included in the amount of the company’s Ontario labour expenditure for the taxation year in respect of the production. 2000, c. 42, s. 16 (2); 2004, c. 16, s. 2 (2). Eligible credit, other productions (6) A qualifying production company’s eligible credit for a taxation year in respect of an eligible Ontario production for which principal photography commences before November 1, 1997 is, if the production is not a first-time production, the lesser of, (a) the sum of, (i) 15 per cent of the amount determined by multiplying the company’s qualifying labour expenditure for the taxation year in respect of the production by the ratio of the company’s pre-May 7, 1997 Ontario labour expenditure for the taxation year in respect of the production to the company’s total Ontario labour expenditure for the taxation year in respect of the production, and (ii) 20 per cent of the amount determined by multiplying the company’s qualifying labour expenditure for the taxation year in respect of the production by the ratio of the company’s post-May 6, 1997 Ontario labour expenditure for the taxation year in respect of the production to the company’s total Ontario labour expenditure for the taxation year in respect of the production; (b) the amount by which, (i) the amount certified under subsection (9) in respect of the production, exceeds, (ii) the sum of all amounts in respect of the production that were deducted from tax under this section for a prior taxation year or were deemed by this section to be paid on account of tax payable under this Act for a prior taxation year.  1996, c. 24, s. 27; 1997, c. 43, Sched. A, s. 19 (3); 1998, c. 5, s. 13 (4); 2004, c. 16, s. 2 (2). Productions commenced after October 31, 1997 other than first‑time productions (6.1) Subject to subsection (6.1.1), the eligible credit of a qualifying production company for a taxation year in respect of an eligible Ontario production that is not a first-time production and for which principal photography commences after October 31, 1997 is the sum of, (a) 20 per cent of the company’s qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures that are incurred before January 1, 2005 and included in the Ontario labour expenditure for the year in respect of the production; (b) 30 per cent of the company’s qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2004 and before January 1, 2008 that are included in the Ontario labour expenditure for the year in respect of the production; and (c) 35 per cent of the company’s qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2007 and in a year that ends before January 1, 2009 that are included in the Ontario labour expenditure for the year in respect of the production.  2008, c. 7, Sched. E, s. 5 (6). Same, regional Ontario production (6.1.1) The eligible credit of a qualifying production company for a taxation year that ends after May 2, 2000 in respect of an eligible Ontario production that is a regional Ontario production but is not a first-time production is the sum of, (a) 30 per cent of the company’s qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after May 2, 2000 and before January 1, 2005 that are included in the Ontario labour expenditure for the year in respect of the production; (b) 40 per cent of the company’s qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2004 and before January 1, 2008 that are included in the Ontario labour expenditure for the taxation year in respect of the production; and (c) 45 per cent of the company’s qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2007 and in a year that ends before January 1, 2009 that are included in the Ontario labour expenditure for the year in respect of the production.  2008, c. 7, Sched. E, s. 5 (6). Exception (6.1.2) If a percentage is prescribed by the regulations for the purposes of replacing a percentage set out in subsection (6.1) or (6.1.1), the prescribed percentage and not the percentage that it replaces shall apply in determining an amount under that subsection in respect of the period to which the prescribed percentage applies.  2005, c. 28, Sched. D, s. 10 (2). Exception (6.2) Despite subsections (4) to (6.1.1), a qualifying production company’s eligible credit for a taxation year in respect of an eligible Ontario production is nil if the company claims a tax credit for any taxation year under section 43.10 in respect of the production.  1998, c. 5, s. 13 (5); 2000, c. 42, s. 16 (4); 2004, c. 16, s. 2 (2). Application for certificate (7) In order to be eligible to deduct or claim an amount in respect of an Ontario film and television tax credit under this section with respect to a particular production, a qualifying production company shall apply to the Ontario Media Development Corporation, or to another person designated by the Minister of Culture, for certification that the production is an eligible Ontario production for the purposes of this section.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 10 (3). Same (8) A qualifying production company that applies for certification shall provide the information specified for the purposes of this section by the Ontario Media Development Corporation or the person designated by the Minister of Culture to the person who specified that it be provided.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 10 (3). Certificate (9) If the particular production is an eligible Ontario production for the purposes of this section, the Ontario Media Development Corporation or the person designated by the Minister of Culture shall issue to the qualifying production company a certificate and any amended certificates, with each certificate, (a) certifying that the particular production is an eligible Ontario production for the purposes of this section; (b) certifying the estimated amount of the corporation’s eligible credit for the production, for the purposes of this section; and (c) if principal photography for the production commences before November 1, 1997, certifying the amount of the company’s Ontario film and television tax credit limit to be allocated to the particular production.  1998, c. 5, s. 13 (6); 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 10 (3). Same (10) In order to deduct or claim an amount under this section for a taxation year in respect of a particular production, a qualifying production company must deliver to the Minister with its return for the taxation year the certificate most recently issued in respect of the production or a certified copy of it.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Tax credit limit (11) The Ontario film and television tax credit limit of a qualifying production company and all corporations associated with the company in respect of eligible Ontario productions for which principal photography commences in a production year and before November 1, 1997 is the amount determined under the following rules: 1. The Ontario film and television tax credit limit in respect of all eligible Ontario productions for which principal photography is commenced by the company or a corporation associated with the company in the 1996 production year is $2,000,000. 2. The Ontario film and television tax credit limit in respect of all eligible Ontario productions for which the principal photography is commenced by the company or a corporation associated with the company in the 1997 production year and before November 1, 1997 is $2,666,667.  1998, c. 5, s. 13 (7); 2004, c. 16, s. 2 (2). Same (12) No person shall issue certificates under subsection (9) in respect of productions for which principal photography commences before November 1, 1997, in which the total of the amounts certified in respect of eligible Ontario productions commenced in the same production year and before November 1, 1997 by the qualifying production company and all corporations associated with the company in the year would exceed the amount of the Ontario film and television tax credit limit applicable to that production year.  1998, c. 5, s. 13 (8); 2004, c. 16, s. 2 (2). Maximum certified amount (13) The amount that may be certified under subsection (9) and allocated to a particular eligible Ontario production for which principal photography commences before November 1, 1997 shall not exceed, (a) if the production is an eligible television series production, the lesser of, (i) $1,500,000, and (ii) the amount by which the Ontario film and television tax credit limit applicable to the production year in which the production commenced exceeds the sum of all amounts previously certified under subsection (9) in respect of eligible Ontario productions commenced in the same production year by the qualifying production company or a corporation associated with the company; or (b) if the production is not an eligible television series production, the lesser of, (i) $500,000, and (ii) the amount by which the Ontario film and television tax credit limit applicable to the production year in which the production commenced exceeds the sum of all amounts previously certified under subsection (9) in respect of eligible Ontario productions commenced in the same production year by the qualifying production company or a corporation associated with the company.  1996, c. 24, s. 27; 1997, c. 43, Sched. A, s. 19 (6, 7); 1998, c. 5, s. 13 (9); 2004, c. 16, s. 2 (2). Deemed tax payment (14) A qualifying production company shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the company not exceeding the amount, if any, by which, (a) the company’s Ontario film and television tax credit for the taxation year, exceeds, (b) the maximum amount, if any, deductible by the company under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Time of deemed payment (15) A qualifying production company shall be deemed to make the payment referred to in subsection (14) and the Minister shall be deemed to apply the deemed payment on the day on or before which the company would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Revocation of certificate (16) A certificate or amended certificate issued under subsection (9) may be revoked, (a) if an omission or incorrect statement was made for the purpose of obtaining the certificate; (b) if the production is not an eligible Ontario production; (c) if the corporation to which the certificate is issued is not a qualifying production company; or (d) if the corporation is issued a certificate in respect of the production under subsection 43.10 (8).  1998, c. 5, s. 13 (10); 2004, c. 16, s. 2 (2). Same (17) A certificate that is revoked shall be deemed never to have been issued.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Amount of last certificate (18) If the last issued certificate in respect of a production certifies an amount less than the amount certified in a previously issued certificate in respect of the production, every amount that may be deducted or claimed under this section for a taxation year by a qualifying production company in respect of the production shall be deemed to be the amount that would have been determined if the last certificate issued had been the only certificate issued.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Definitions (19) In this section, “eligible Ontario production” means a film or television production that satisfies the conditions prescribed by the regulations; (“production ontarienne admissible”) “eligible television series production” means an eligible Ontario production that satisfies the conditions prescribed by the regulations; (“production admissible d’une série télévisée”) “film studio” means, (a) a building in which sets are used for the purpose of making film or television productions and sound, light and human access are controlled, or (b)  a building in which activities are carried out directly in support of animation if the production is an animated production or contains animated segments; (“studio”) “first-time production” means an eligible Ontario production that is a first-time production under the rules prescribed by the regulations; (“première production”) “Greater Toronto Area” means the geographic area composed of the City of Toronto and the regional municipalities of Durham, Halton, Peel and York; (“Grand Toronto”) “location day” means, in respect of an eligible Ontario production, a day on which principal photography for the production is done in Ontario outside a film studio; (“jour de tournage en extérieur”) “Ontario labour expenditure” means the amount determined under the rules prescribed by the regulations in respect of labour expenditures incurred after June 30, 1996 in respect of a production for which principal photography or key animation commenced after May 7, 1996; (“dépense de main-d’oeuvre en Ontario”) “production year” means the twelve-month period prescribed by the regulations; (“année de production”) “qualifying labour expenditure” means the amount determined under the rules prescribed by the regulations in respect of labour expenditures incurred after June 30, 1996 in respect of a production in which the principal photography or key animation commenced after May 7, 1996; (“dépense de main-d’oeuvre admissible”) “qualifying production company” means a corporation that satisfies the conditions prescribed by the regulations; (“société de production admissible”) “regional Ontario production” means an eligible Ontario production, (a) for which the principal photography in Ontario is done entirely outside the Greater Toronto Area, (b) for which the principal photography in Ontario is done in whole or in part outside a film studio, but only if, (i) the number of Toronto location days for the production does not exceed 15 per cent of the total number of location days in respect of the production, and (ii) the number of location days for the production is at least five or, in the case of a production that is a television series, is at least equal to the number of episodes in the production, or (c) for which the principal photography in Ontario consists entirely of animation, but only if no more than 15 per cent of the principal photography in Ontario is done in the Greater Toronto Area; (“production régionale ontarienne”) “Toronto location day” means, in respect of an eligible Ontario production, a day on which principal photography for the production is done outside a film studio and within the Greater Toronto Area. (“jour de tournage en extérieur à Toronto”)  1996, c. 24, s. 27; 1997, c. 43, Sched. A, s. 19 (8); 2000, c. 42, s. 16 (5); 2004, c. 16, s. 2 (2); 2009, c. 34, Sched. G, s. 1. Pre-May 7, 1997 Ontario labour expenditure (20) The pre-May 7, 1997 Ontario labour expenditure of a qualifying production company for a taxation year in respect of an eligible Ontario production is the total of all expenditures incurred in the taxation year and before May 7, 1997 in respect of the production that are included in the amount of the company’s Ontario labour expenditure for the taxation year in respect of the production.  1997, c. 43, Sched. A, s. 19 (9); 2004, c. 16, s. 2 (2). Post-May 6, 1997 Ontario labour expenditure (21) The post-May 6, 1997 Ontario labour expenditure of a qualifying production company for a taxation year in respect of an eligible Ontario production is the total of all expenditures incurred in the taxation year and after May 6, 1997 in respect of the production that are included in the amount of the company’s Ontario labour expenditure for the taxation year in respect of the production.  1997, c. 43, Sched. A, s. 19 (9); 2004, c. 16, s. 2 (2). Regulations (22) The Lieutenant Governor in Council may make regulations, (a) prescribing a percentage for the purposes of paragraph 1, 2 or 3 of subsection (4.3.1) for 2008 or any period of time in 2008; (b) prescribing a percentage for the purposes of clause (6.1) (c) for 2008 or any period of time in 2008; (c) prescribing a percentage for the purposes of clause (6.1.1) (c) for 2008 or any period of time in 2008.  2008, c. 7, Sched. E, s. 5 (7). Same (23) A regulation under subsection (22) may prescribe different percentages in respect of different time periods in which expenditures are incurred.  2005, c. 28, Sched. D, s. 10 (4). Section Amendments with date in force (d/m/y) 1996, c. 24, s. 27 - 08/05/1996; 1996, c. 29, s. 50 - 08/05/1996; 1997, c. 43, Sched. A, s. 19 (1, 3-9) - 07/05/1997; 1997, c. 43, Sched. A, s. 19 (2) - 08/05/1996; 1998, c. 5, s. 13 (1, 3-10) - 01/11/1997; 1998, c. 5, s. 13 (2) - 08/05/1996 2000, c. 42, s. 16 (1-5)
- 03/05/2000 2004, c. 16, s. 2 (2)
- 01/01/2004 2005, c. 28, Sched. D, s. 10 (1-4) - 11/05/2005 2008, c. 7, Sched. E, s. 5 (1, 4, 5) - 01/01/2008; 2008, c. 7, Sched. E, s. 5 (2, 3) - 11/05/2005; 2008, c. 7, Sched. E, s. 5 (6, 7) - 14/05/2008 2009, c. 34, Sched. G, s. 1 (1, 2) - 03/05/2003