904. (1) A film or television production is an eligible production for the purposes of section 43.10 of the Act for a taxation year if the following conditions are satisfied: 1. The principal photography for the production commences before the end of the taxation year. 2. If the production is a television series production or is a pilot episode for a television series production, the total expenditures included in the cost of each episode or, if the production is a depreciable property, in the capital cost of each episode, during the 24 months after principal photography for the production commences, exceed, i. $100,000 if the episode has a running time that is less than 30 minutes, or ii. $200,000 in any other case. 3. If the production is not the type of production referred to in paragraph 2, the total expenditures included in the cost of the production or, if the production is a depreciable property, in the capital cost of the production, during the 24 months after principal photography for the production commences, exceed $1 million. 4. The production is not, i. news, current events or public affairs programming, or a programme that includes weather or market reports, ii. a talk show, iii. a production in respect of a game, questionnaire or contest, iv. a sports event or activity, v. a gala presentation or awards show, vi. a production that solicits funds, vii. reality television, viii. pornography, ix. advertising, x. a production produced primarily for industrial, corporate or institutional purposes, or xi. a production for which public financial support would be contrary to public policy.  O. Reg. 76/99, s. 3; O. Reg. 558/99, s. 2 (1). (2) A corporation is a qualifying corporation in respect of an eligible production for the purposes of section 43.10 of the Act for a taxation year if the corporation would be an “eligible production corporation” throughout the taxation year, within the meaning of the definition of that term in subsection 125.5 (1) of the Federal Act if that definition were read with the following changes: 1. The references to “accredited production” and “in Canada” shall be read as “eligible production” and “in Ontario”, respectively. 2. The reference to “(as defined by regulation)” shall be struck out. 3. The reference to “eligible production corporation” in paragraph (b) of the definition shall be read as “qualifying corporation”. (3) A qualifying corporation’s qualifying Ontario labour expenditure for a taxation year in respect of an eligible production for the purposes of section 43.10 of the Act is the amount, if any, by which “A” exceeds “B”, where, “A” is the total of all amounts each of which is the corporation’s Ontario labour expenditure for the year or a preceding taxation year, and “B” is the total of the amounts that would be determined for the taxation year under paragraphs (b), (c) and (d) of the definition of “qualified Canadian labour expenditure” in subsection 125.5 (1) of the Federal Act, if that definition were read with the changes required by subsection (4). (4) Paragraphs (b), (c) and (d) of the definition of “qualified Canadian labour expenditure” in subsection 125.5 (1) of the Federal Act shall be read with the following changes for the purposes of subsection (3): 1. Each reference to “accredited production” shall be read as “eligible production”. 2. The reference in paragraph (b) to “the total determined under paragraph (a)” shall be read as a reference to the total of all amounts each of which is the corporation’s Ontario labour expenditure in respect of the production for the year or a preceding taxation year. 3. The amount of assistance referred to in paragraph (b) shall be deemed to be the amount determined in subsection (5). 4. The reference in paragraph (c) to “qualified Canadian labour expenditure” shall be read as “qualifying Ontario labour expenditure”. 5. The reference to “principal filming or taping” in paragraph (c) shall be read as “principal photography”. (5) For the purposes of paragraph 3 of subsection (4), the amount of assistance referred to in paragraph (b) of the definition of “qualified Canadian labour expenditure” in subsection 125.5 (1) of the Federal Act shall be deemed to be the amount by which “A” exceeds “B”, where, “A” is the amount otherwise determined in respect of the production under the definition of “assistance” in subsection 125.5 (1) of the Federal Act, and “B” is the amount, if any, that is deemed to be, (a) paid under subsection 125.4 (3) of the Federal Act in respect of the production, or (b) received under subsection 44.1 (5) of the Act in respect of the production, if that subsection were read without reference to sections 43.4 and 43.6 of the Act. (6) For the purposes of subsection (3), a qualifying corporation’s Ontario labour expenditure for a taxation year in respect of an eligible production is the amount that would be determined in respect of the production for the taxation year under the definition of “Canadian labour expenditure” in subsection 125.5 (1) of the Federal Act, if paragraph 125.5 (2) (b) did not apply and if that definition were read as follows: 1. Each reference to “accredited production” shall be read as “eligible production”. 2. The reference to “eligible production corporation” shall be read as “qualifying corporation”. 3. The reference to “subject to subsection (2)” shall be read as “subject to subsection (2), other than paragraph (2) (b)”. 4. Each reference to “services rendered in Canada” shall be read as “services rendered in Ontario”. 5. The reference in paragraph (a) to “who were resident in Canada” shall be read as “who were Ontario-based individuals”. 6. The reference in paragraph (b) to “in Canada through a permanent establishment (as defined by regulation)” shall be read as “in Ontario through a permanent establishment”. 7. The reference in subparagraph (b) (i) to “an individual resident in Canada” shall be read as “an Ontario-based individual”. 8. The reference in clause (b) (i) (A) to “in Canada” shall be read as “in Ontario”. 9. The references in clause (b) (i) (B) and subparagraph (b) (ii) to “resident in Canada” and “services in Canada” shall be read as “Ontario-based individuals” and “services in Ontario”, respectively. 10. The references in subparagraph (b) (iii) to “individual who was resident in Canada” and “personally in Canada” shall be read as “Ontario-based individual” and “personally in Ontario”, respectively. 11. The reference in clause (b) (iv) (A) to “individual who is resident in Canada” shall be read as “Ontario-based individual”. 12. The references in clause (b) (iv) (B) to “resident in Canada” and “services in Canada” shall be read as “Ontario-based individuals” and “services in Ontario”, respectively. 13. The reference to “Canadian labour expenditure” in paragraph (c) shall be read as “Ontario labour expenditure”. 14. If the qualifying corporation files an agreement referred to in subparagraph (c) (ii) with the Minister of National Revenue for the purposes of section 125.5 of the Federal Act, or has agreed that paragraph (c) of the definition of “labour expenditure” in subsection 125.4 (1) of the Federal Act applies in respect of the production, the agreement required to be filed with the Minister under subparagraph (c) (ii) as it applies for the purposes of this section shall be a copy of the agreement filed under section 125.5 of the Federal Act or a copy of the agreement under section 125.4 of the Federal Act.  O. Reg. 76/99, s. 3. (7) For the purposes of this section, “Federal Act” means the Income Tax Act (Canada); “Ontario-based individual” means, in relation to an eligible production, an individual who was subject to tax under section 2 of the Income Tax Act for the year preceding the year in which principal photography for the production commences, by reason that the individual was resident in Ontario on the last day of that year; “principal photography” includes key animation if the film or television production is an animated production or contains animated segments; “television series production” means one or more episodes of a cycle of a television series that are specified to be a production for the purposes of section 43.10 of the Act in the application for certification that the production is an eligible Ontario production for the purposes of that section.  O. Reg. 76/99, s. 3; O. Reg. 558/99, s. 2 (2).