Ontario labour expenditure
 30. (1) For the purposes of section 91 of the Act and subject to subsection (2), a qualifying corporation’s Ontario labour expenditure for a taxation year in respect of an eligible Ontario production is the sum of the following amounts to the extent that the amounts are reasonable in the circumstances and included in the cost or capital cost of the eligible Ontario production to the corporation or to another person or a partnership: 1. Salary and wages incurred in the year or the previous taxation year by the corporation that are directly attributable to the production of the eligible Ontario production for the stages of production from the production commencement time to the end of the post-production stage, if the salary and wages are paid by the corporation in the year or within 60 days after the end of the year to Ontario-based individuals, but not including salary or wages incurred in the previous taxation year that are paid within 60 days after the end of the previous taxation year. 2. That portion of the remuneration (excluding salary and wages and excluding remuneration that relates to services rendered in the previous taxation year for which the remuneration was paid within 60 days after the end of the previous taxation year) that is directly attributable to the production of the eligible Ontario production and relates to services rendered in the year or the previous taxation year for the stages of production from the production commencement time to the end of the post-production stage if the remuneration is paid by the corporation in the year or within 60 days after the end of the year to, i. an Ontario-based individual who is not an employee of the corporation, to the extent that the amount paid, A. is attributable to services personally rendered by the individual for the production of the eligible Ontario production, or B. is attributable to, and does not exceed the salary and wages of, Ontario-based individuals who are employees of the Ontario-based individual, to the extent the salary and wages are paid to the employees for personally rendering services for the production of the eligible Ontario production, ii. another taxable Canadian corporation, to the extent that the amount paid is attributable to, and does not exceed the salary and wages of Ontario-based individuals who are employees of the other corporation, if the salary and wages are paid to the employees for personally rendering services for the production of the eligible Ontario production, iii. another taxable Canadian corporation, A. if all the issued and outstanding shares of the capital stock of that corporation (except directors’ qualifying shares) belong to an Ontario-based individual and the activities of that corporation consist principally of the provision of the Ontario-based individual’s services, and B. to the extent the amount paid is attributable to services rendered personally by the Ontario-based individual for the production of the eligible Ontario production, or iv. a partnership that is carrying on business in Canada, to the extent that the amount paid, A. is attributable to services personally rendered by a member of the partnership who is an Ontario-based individual and the services are rendered for the production of the eligible Ontario production, or B. is attributable to, and does not exceed the salary and wages of Ontario-based individuals who are employees of the partnership, to the extent the salary and wages are paid to the employees for personally rendering services for the production of the eligible Ontario production. 3. If the corporation is a subsidiary of a parent that is a taxable Canadian corporation and the corporation and its parent have agreed that this paragraph applies in respect of the production, the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of that production and that would be included in the corporation’s Ontario labour expenditure in respect of the property for the particular taxation year because of paragraph 1 or 2 if, i. the corporation had had such a particular taxation year, and ii. the expenditure were incurred by the corporation for the same purpose as it was by the parent and were paid at the same time and to the same person or partnership as it was by the parent.  O. Reg. 37/09, s. 30 (1). (2) For the purposes of determining the Ontario labour expenditure of a qualifying production company, (a) remuneration does not include remuneration determined by reference to profits or revenues; (b) an expenditure incurred in respect of an eligible Ontario production by a qualifying production company (in this clause referred to as the “co-producer”) in respect of goods supplied or services rendered by another qualifying production company to the co-producer in respect of the production is not a labour expenditure to the co-producer and, for the purpose of applying this section to the co-producer, is not a cost or capital cost of the production; and (c) no amount shall be included to the extent section 37 of the Federal Act applies to the amount.  O. Reg. 37/09, s. 30 (2). (3) In this section, “production commencement time” means, in respect of a film or television production, the earlier of, (a) the day when principal photography of the production begins, and (b) the latest of, (i) the day when a qualified production company that has an interest in the production, or the parent of the company, first makes an expenditure for salary, wages or other remuneration for activities of scriptwriters that are directly attributable to the development by the company of script material of the production, (ii) the day when the company or the parent of the company acquires a property on which the production is based that is a published literary work, screenplay, play, personal history or all or part of the script material of the production, and (iii) two years before the day on which principal photography of the production begins.  O. Reg. 37/09, s. 30 (3).