95 (1) A corporation that is an Ontario book publishing company for a taxation year and complies with the requirements of this section may claim an amount for the year in respect of and not exceeding the corporation’s Ontario book publishing tax credit for the year.  2007, c. 11, Sched. A, s. 95 (1). Amount of tax credit (2) The amount of a corporation’s Ontario book publishing tax credit for a taxation year is the sum of all amounts each of which is determined in respect of an eligible literary work and equal to the lesser of, (a) 30 per cent of the corporation’s qualifying expenditures incurred before the end of the year in respect of the publication of the literary work, to the extent that the expenditures were not included in determining the available credit relating to the publication of the literary work that was included in an amount claimed by the corporation for a previous taxation year under this section or section 43.7 of the Corporations Tax Act; and (b) $30,000 less the total of all amounts, if any, each of which was claimed in respect of the publication of the literary work under this section or section 43.7 of the Corporations Tax Act.  2007, c. 11, Sched. A, s. 95 (2). Same, book containing more than one literary work (3) A book that contains more than one literary work is deemed to be one literary work for the purposes of subsection (2), and the amount of a corporation’s Ontario book publishing tax credit for a taxation year in respect of the book shall not exceed the amount determined under subsection (2).  2007, c. 11, Sched. A, s. 95 (3). Corporate partner (4) The following rules apply if a corporation is a member of a partnership and the partnership would qualify for a fiscal period ending in a taxation year of the corporation for an Ontario book publishing tax credit if the partnership were a corporation whose fiscal period was its taxation year: 1. Subject to paragraph 2, the portion of the Ontario book publishing tax credit to which the partnership would be entitled if it were a corporation that may reasonably be considered to be the corporation’s share may be included in determining the amount of the corporation’s Ontario book publishing tax credit for the corporation’s taxation year. 2. If the corporation or another member of the partnership bases a claim in respect of the partnership for the fiscal period under subsection (5), no amount in respect of the partnership may be included in determining the amount of the corporation’s Ontario book publishing tax credit for the corporation’s taxation year otherwise than pursuant to subsection (5).  2007, c. 11, Sched. A, s. 95 (4). Same (5) If it is acceptable to the Ontario Minister, a partner’s share of a partnership’s Ontario book publishing tax credit determined under subsection (4) for a fiscal period shall be equal to such amount as the partner claims not exceeding the amount, if any, by which the amount of that credit exceeds the total of all amounts each of which is claimed under this section or section 43.7 of the Corporations Tax Act
in respect of the amount of that credit by another partner.  2007, c. 11, Sched. A, s. 95 (5). Limited partner (6) Despite subsections (4) and (5), a limited partner’s share of an Ontario book publishing tax credit to which a partnership would be entitled if it were a corporation is deemed to be nil.  2007, c. 11, Sched. A, s. 95 (6). Ontario book publishing company (7) A corporation is an Ontario book publishing company for a taxation year if it is a Canadian-controlled corporation throughout the year and is a book publishing company that carries out its business primarily through a permanent establishment of the corporation in Ontario.  2007, c. 11, Sched. A, s. 95 (7). Application for certificate (8) In order to be eligible to claim an amount in respect of an Ontario book publishing tax credit under this section with respect to a particular literary work, an Ontario book publishing company shall apply to the Ontario Media Development Corporation or a person designated by the Minister of Culture for certification that the work is an eligible literary work for the purposes of this section.  2007, c. 11, Sched. A, s. 95 (8). Same (9) An Ontario book publishing company that applies for certification shall provide to the designated person the information he or she specifies for the purposes of this section.  2007, c. 11, Sched. A, s. 95 (9). Certificate (10) If the particular literary work is an eligible literary work for the purposes of this section, the designated person shall issue to the Ontario book publishing company a certificate certifying that the work is an eligible literary work for the purposes of this section.  2007, c. 11, Sched. A, s. 95 (10). Same (11) In order to claim an amount under this section for a taxation year in respect of a particular literary work, an Ontario book publishing company must deliver to the Ontario Minister with its return for the year the certificate issued in respect of the work, or a certified copy of the certificate.  2007, c. 11, Sched. A, s. 95 (11). Revocation of certificate (12) A certificate issued under subsection (10) may be revoked if, (a) an omission or incorrect statement was made for the purpose of obtaining the certificate; (b) the corporation is not an Ontario book publishing company; or (c) the literary work is not an eligible literary work for the purposes of this section.  2007, c. 11, Sched. A, s. 95 (12). Same (13) A certificate that is revoked is deemed never to have been issued.  2007, c. 11, Sched. A, s. 95 (13). Eligible literary work (14) A literary work is an eligible literary work if it satisfies the following conditions: 1. The literary work is written by an eligible Canadian author or, if it is written by more than one author, all or substantially all of the work is the work of eligible Canadian authors. 2. The literary work belongs to an eligible category of writing. 3. At least 90 per cent of the literary work is new material that has not been previously published. 4. If the literary work contains pictures and is not a children’s book, the ratio of the amount of text to pictures in the literary work is at least 65 per cent. 5. The literary work is suitable for publication as a bound book having not less than 48 printed pages, unless the literary work is a children’s book. 6. The literary work is not an ineligible publication.  2007, c. 11, Sched. A, s. 95 (14). Exception (15) No amount in respect of a tax credit under this section may be claimed by a corporation with respect to the publishing of a literary work if, (a) the publication date is before May 7, 1997; (b) the corporation publishes the literary work on consignment or at the expense of another person; (c) the author of the literary work, a person related to the author or a person who is, or is related to, the subject of the literary work directly or indirectly funds, or guarantees the payment of, any part of the cost of publishing or marketing the literary work; (d) the corporation is controlled by the author of the literary work, or by a person not dealing at arm’s length with the author; (e) the publication date of the literary work is before March 27, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book; (e.1) the publication date of the literary work is after March 26, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book or as a digital or electronic version of the literary work; (f) the corporation publishes the literary work in an edition of less than 500 copies, if the literary work is published in a year before 2020; (g) the published literary work is not assigned an International Standard Book Number (ISBN); (h) the corporation does not offer the literary work for sale through an established distributor; (i) the corporation published fewer than two books during the 12-month period immediately before the taxation year for which the credit under this section is claimed; or (j) the literary work is published in a book that also contains one or more other literary works and less than all or substantially all of the literary works contained in the book are by eligible Canadian authors.  2007, c. 11, Sched. A, s. 95 (15); 2009, c. 34, Sched. U, s. 20 (1); 2020, c. 36, Sched. 43, s. 6; 2022, c. 17, Sched. 5, s. 3. Qualifying expenditures (16) The following amounts in respect of the publishing of an eligible literary work by an Ontario book publishing company are qualifying expenditures of the company for a taxation year: 1. Expenditures incurred by the company in the year in respect of pre-press costs, including, i.  non-refundable monetary advances to the eligible Canadian author of the literary work, and ii. amounts in respect of activities that reasonably relate to the publishing of the literary work, if the activities are carried out primarily in Ontario, including, A. salaries or wages paid to employees involved in editing, design and project management, B. amounts in respect of fees for freelance editing, design and research, and C. amounts in respect of the cost of art work, developing prototypes, set-up and typesetting. 1.1 Expenditures incurred by the company after March 26, 2009 and in the year in respect of activities that reasonably relate to preparing a literary work for publication in one or more digital or electronic formats, if the activities are carried out primarily in Ontario, including, i. salaries or wages paid to employees involved in editing, design and project management, ii. amounts in respect of fees for freelance editing, design and research, iii. amounts in respect of the cost of art work, developing prototypes and set-up, and iv. salaries, wages, fees or other amounts in respect of related activities, including scanning, editing, formatting, indexing, encryption and establishing digital rights management or other technological protection measures. 2. One-half of the expenditures incurred by the company in the year for the printing, assembling and binding of the literary work, if those activities are carried out primarily in Ontario. 2.1 One-half of the expenditures incurred by the company after March 26, 2009 and in the year that reasonably relate to transferring a prepared digital or electronic version of the literary work into or onto a form suitable for distribution, if those activities are carried out primarily in Ontario. 3. With respect to expenditures incurred by the company before March 30, 2011, those expenditures incurred in the year that reasonably relate to the marketing of copies of the published literary work and are incurred by the company within 12 months after the date of publication of the literary work, including, i. expenditures in respect of promotional tours by the eligible Canadian author of the literary work, except that only 50 per cent of expenditures for meals and entertainment are qualifying expenditures, ii. salaries or wages paid to employees of the company engaged in marketing copies of the published literary work, and iii. amounts expended in respect of promoting and marketing copies of the published literary work. 4. With respect to expenditures incurred by the company after March 29, 2011, those expenditures incurred in the year that reasonably relate to the marketing of copies of the published literary work and are incurred by the company within the period that begins 12 months before and ends 12 months after the date of publication of the literary work, including, i. expenditures in respect of promotional tours by the eligible Canadian author of the literary work, except that only 50 per cent of expenditures for meals and entertainment are qualifying expenditures, ii. salaries or wages paid to employees of the company engaged in marketing copies of the published literary work, and iii. amounts expended in respect of promoting and marketing copies of the published literary work.  2007, c. 11, Sched. A, s. 95 (16); 2009, c. 34, Sched. U, s. 20 (2); 2010, c. 1, Sched. 29, s. 12; 2011, c. 9, Sched. 40, s. 5. Restriction (16.1) An expenditure may not be included under a paragraph of subsection (16) in respect of the publishing of an eligible literary work if the expenditure is also included under another paragraph of that subsection in respect of the publishing of the literary work.  2009, c. 34, Sched. U, s. 20 (3). Same (17) The total of all qualifying expenditures made by a corporation in respect of the publishing of an eligible literary work shall be the amount otherwise determined less the amount of all government assistance, if any, in respect of the qualifying expenditures that, on the corporation’s filing-due date for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or may reasonably expect to receive.  2007, c. 11, Sched. A, s. 95 (17). Corporate reorganizations (18) Subsection (19) applies if, after December 31, 2001, one of the following events occurs: 1. An Ontario book publishing company (the “transferor”) transfers all or part of its business to another corporation (the “transferee”) in accordance with subsection 85 (1) of the Federal Act. 2. A corporation (the “transferee”) is formed as the result of an amalgamation of an Ontario book publishing company (the “transferor”) with one or more other corporations in accordance with section 87 of the Federal Act. 3. An Ontario book publishing company (the “transferor”) is wound up in accordance with subsection 88 (1) of the Federal Act and its assets and liabilities, if any, are transferred to its parent corporation (the “transferee”).  2007, c. 11, Sched. A, s. 95 (18). Continuation of corporation (19) If one of the conditions described in subsection (18) is satisfied, the following rules apply: 1. For the purposes of subsections (2), (8) and (16), the transferee is deemed to be the same corporation as, and a continuation of, the transferor with respect to an eligible literary work or the right to publish an eligible literary work that is transferred to the transferee under paragraph 1, 2 or 3 of subsection (18) and any amount previously claimed under this section or section 43.7 of the Corporations Tax Act by the transferor for a taxation year in respect of the eligible literary work is deemed to have been claimed by the transferee for that previous taxation year. 2. For the purposes of subsections (2), (8) and (16), the transferor ceases, immediately after the eligible literary work is transferred under paragraph 1, 2 or 3 of subsection (18) to be an Ontario book publishing company in respect of the eligible literary work or the right to publish the eligible literary work. 3. For the purpose of clause (15) (i), any books published by the transferor in the 12-month period immediately preceding the taxation year in which the event described in paragraph 1, 2 or 3 of subsection (18) occurs are deemed to have been published by the transferor and the transferee.  2007, c. 11, Sched. A, s. 95 (19). Definitions (20) In this section, “author” includes, in respect of a literary work that is a children’s book, the illustrator of the literary work; (“auteur”) “book publishing company” means a corporation whose principal business is selecting, editing and publishing books and that, (a) enters into contractual agreements with authors and copyright holders for the production of literary works in print form, (b) offers for sale into the retail market the literary works that it publishes, (c) owns its own inventory or is related to a Canadian-controlled corporation that owns the inventory, or has a contractual arrangement for inventory repurchase or acceptance of book returns, and (d) bears the financial risks associated with carrying on the business of publishing, or is related to a Canadian-controlled corporation that bears the financial risks associated with carrying on the business; (“maison d’édition”) “Canadian-controlled corporation” means a corporation that is determined to be Canadian-controlled under sections 26 to 28 of the Investment Canada Act (Canada) for the purposes of that Act and, in the application of those sections for the purposes of this definition, a reference to the Minister shall be read as a reference to the Minister of Finance; (“société sous contrôle canadien”) “eligible Canadian author” means, with respect to a literary work, an individual, (a) who, when the contract is entered into to publish the literary work, is ordinarily resident in Canada and is a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada), and (b) who, if the literary work is published before March 27, 2009, has not written more than two literary works of the same eligible category of writing that have been previously published, other than a literary work published in an anthology containing two or more literary works by different authors; (“auteur canadien admissible”) “established distributor” means a person or partnership that has engaged in the business of selling or distributing books to retail stores and educational institutions for more than one year and does not sell directly by retail to an ultimate consumer; (“distributeur établi”) “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but does not include, (a) a tax credit under this section or section 96 of this Act or section 43.3 or 43.7 of the Corporations Tax Act, or (b) a grant that is not specific to a particular eligible literary work; (“aide gouvernementale”) “ineligible publication” means a literary work that is an ineligible publication under the prescribed rules. (“publication non admissible”)  2007, c. 11, Sched. A, s. 95 (20); 2009, c. 34, Sched. U, s. 20 (4). Eligible category of writing (21) For the purposes of this section, the eligible categories of writing are as follows: 1. If the literary work is published on or before May 11, 2005, each of the following is an eligible category of writing: i. Fiction. ii. Nonfiction. iii. Poetry. iv. Biography. v. Children’s books. 2. If the literary work is published after May 11, 2005, each of the following is an eligible category of writing: i. Fiction. ii. Nonfiction. iii. Poetry. iv. Biography. v. Children’s fiction. vi. Children’s nonfiction. vii. Children’s poetry. viii. Children’s biography.  2007, c. 11, Sched. A, s. 95 (21). Transitional, eligible Canadian author (22) In determining if an individual is an eligible Canadian author of a literary work published after May 11, 2005 that is children’s fiction, children’s nonfiction, children’s poetry or children’s biography and whether the individual has more than two literary works of the same eligible category of writing that have been previously published, any children’s books of which the individual is the author that were published before May 12, 2005 shall be classified according to the eligible categories of writing that would apply if the books had been published after May 11, 2005.  2007, c. 11, Sched. A, s. 95 (22). Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 20 (1-4) - 27/03/2009 2010, c. 1, Sched. 29, s. 12 - 27/03/2009 2011, c. 9, Sched. 40, s. 5 - 12/05/2011 2020, c. 36, Sched. 43, s. 6 - 08/12/2020 2022, c. 17, Sched. 5, s. 3 - 08/09/2022