Ontario labour expenditure
 25. (1) For the purposes of section 90 of the Act, the amount of a qualifying corporation’s Ontario labour expenditure for a taxation year with respect to an eligible production is the sum of, (a) the qualifying wage amount, as described in subsection (2), of the qualifying corporation for the year with respect to the eligible production; (b) for expenditures incurred before March 27, 2009, 50 per cent of the qualifying remuneration amount of the corporation, as described in subsection (3), of the qualifying corporation for the year with respect to the eligible production; and (c) for expenditures incurred after March 26, 2009, the qualifying remuneration amount of the corporation, as described in subsection (3), of the qualifying corporation for the year with respect to the eligible production.  O. Reg. 37/09, s. 25 (1); O. Reg. 70/10, s. 4 (1). (2) Subject to subsections (2.1) and (6), the qualifying wage amount of a qualifying corporation for a taxation year with respect to an eligible production is the sum of, (a) the amount incurred by it during the taxation year on account of salaries and wages that are directly attributable to eligible computer animation and special effects activities carried out by the qualifying corporation in Ontario for the eligible production; and (b) if principal photography for the eligible production commenced after March 22, 2007, the amount, if any, of the eligible reimbursement of salaries and wages as determined under subsection (5) made by the qualifying corporation with respect to the eligible production for the taxation year.  O. Reg. 37/09, s. 25 (2); O. Reg. 70/10, s. 4 (2). (2.1) If the qualifying corporation is a taxable Canadian corporation described in paragraph 4 of subsection (4), the qualifying wage amount of the qualifying corporation does not include an amount that, (a) is incurred by the corporation after March 26, 2009; and (b) is paid to an employee of the corporation in connection with eligible computer animation and special effects activities undertaken by the corporation on behalf of another qualifying corporation.  O. Reg. 70/10, s. 4 (3). (3) Subject to subsection (6), the qualifying remuneration amount of a qualifying corporation for a taxation year with respect to an eligible production is the sum of, (a) the amount determined under subsection (4); and (b) if principal photography for the eligible production commenced after March 22, 2007, the amount, if any, of the eligible reimbursement of remuneration as determined under subsection (5) made by the qualifying corporation with respect to the eligible production for the taxation year.  O. Reg. 37/09, s. 25 (3). (4) The amount determined under this subsection is an expenditure incurred during the taxation year that is directly attributable to eligible computer animation and special effects activities undertaken for the eligible production on behalf of the qualifying corporation and that is paid to any of the following in the following circumstances: 1. An individual who is not an employee of the corporation and who deals at arm’s length with the qualifying corporation, to the extent that the expenditure is attributable to activities personally undertaken by the individual. 2. An individual described in paragraph 1 for activities undertaken by the individual’s employees, to the extent that the expenditure does not exceed the salaries and wages of those employees for personally undertaking those activities. 3. An eligible partnership described in subsection (8), i. for activities personally undertaken by a member of the eligible partnership, or ii. for activities personally undertaken by employees of the eligible partnership, to the extent that the expenditure does not exceed the salaries and wages of those employees for personally undertaking those activities. 4. If the expenditure is incurred after March 26, 2009, a taxable Canadian corporation for services rendered personally by an individual if, i. all of the issued and outstanding shares of the capital stock of the taxable Canadian corporation (other than directors’ qualifying shares) belong to the individual, ii. the individual deals at arm’s length with the qualifying corporation, and iii. the activities of the taxable Canadian corporation consist principally of the provision of the individual’s services.  O. Reg. 37/09, s. 25 (4); O. Reg. 70/10, s. 4 (4). (5) The amount of the eligible reimbursement of salaries and wages or of remuneration made by a qualifying corporation in respect of an eligible production for a taxation year is the amount of the reimbursement made by the qualifying corporation to its parent of an expenditure that was previously incurred by the parent in respect of the eligible production if all of the following conditions are met: 1. The parent is a taxable Canadian corporation. 2. The qualifying corporation and its parent have filed with the Minister an agreement that this subsection applies with respect to costs incurred for the eligible production. 3. The reimbursement is made by the qualifying corporation in the taxation year or within 60 days after the end of the taxation year. 4. If the amount is being determined for the purposes of clause (2) (b), the expenditure was incurred in a particular taxation year of the parent and would have been included in the qualifying wage amount of the qualifying corporation in respect of the eligible production for the particular taxation year under clause (2) (a), i. if the qualifying corporation had had that particular taxation year, and ii. if the expenditure had been incurred by the qualifying corporation for the same purpose as it was incurred by its parent and had been paid at the same time and to the same person or partnership as it was paid by its parent. 5. If the amount is being determined for the purpose of clause (3) (b), the expenditure was incurred in a particular taxation year of the parent and would have been included in the qualifying remuneration amount of the qualifying corporation in respect of the eligible production for the particular taxation year under clause (3) (a), i. if the qualifying corporation had had that particular taxation year, and ii. if the expenditure had been incurred by the qualifying corporation for the same purpose as it was incurred by its parent and had been paid at the same time and to the same person or partnership as it was paid by its parent.  O. Reg. 37/09, s. 25 (5). (6) An expenditure is not included under clause (2) (a) in the qualifying wage amount or under clause (3) (a) in the qualifying remuneration amount of a qualifying corporation for a taxation year with respect to an eligible production unless it meets all of the following conditions: 1. The expenditure is paid by the qualifying corporation no later than 60 days after the end of the year. 2. The expenditure was incurred for activities personally undertaken by an individual who was resident in Ontario at the end of the last calendar year ending before he or she undertook the activities. 3. In the case of the qualifying wage amount, the expenditure is paid to an employee of the qualifying corporation who reported to a permanent establishment of the qualifying corporation in Ontario where the eligible computer animation and special effects activities were undertaken for the eligible production. 4. In the case of the qualifying remuneration amount, the expenditure is paid for activities undertaken at a permanent establishment in Ontario of the qualifying corporation or of an individual, eligible partnership or corporation described in paragraph 1, 2, 3 or 4 of subsection (4). 5. The expenditure is not the subject of an agreement in respect of the eligible production referred to in paragraph 2 of subsection (5) between the qualifying corporation and a wholly-owned subsidiary of the qualifying corporation.  O. Reg. 37/09, s. 25 (6); O. Reg. 70/10, s. 4 (5). (7) Despite paragraph 3 of subsection (5) and paragraph 1 of subsection (6), an expenditure that is excluded from the qualifying wage amount or qualifying remuneration amount of the qualifying corporation for a taxation year because it was not paid within 60 days after the end of the year may be included in the corporation’s qualifying wage amount or qualifying remuneration amount for a subsequent taxation year if it is paid within 60 days after the end of that subsequent taxation year.  O. Reg. 37/09, s. 25 (7). (8) For the purposes of this section, an eligible partnership is a partnership carrying on business in Canada whose members are all individuals. However, a partnership is not an eligible partnership in relation to a qualifying corporation if more than 50 per cent of the income of the partnership is allocable (or would be allocable, if it had income) to one or more members of the partnership who, (a) directly or indirectly control the qualifying corporation; or (b) are related to one or more persons who directly or indirectly control the qualifying corporation.  O. Reg. 37/09, s. 25 (8). Ontario Film and Television Tax Credit