Regulation - LGIC
Regulatory Amendments to Extend Certain Timelines for Ontario's Cultural Media Tax Credits Due to COVID-19
Regulation Number(s):
O.Reg. 112/21 amending O.Reg. 37/09
Instrument Type:
Regulation - LGIC
Bill or Act:
Taxation Act, 2007
Summary of Decision:
Approved
Analysis of Regulatory Impact:
There are significant benefits to business as a result of the regulatory amendments, estimated in the 2020 Ontario Budget at $80M over two years. There are no compliance costs to business or government as a result of the amendments.
Further Information:
2020 Ontario Budget, Annex: Details of Tax Measures and Other Legislative Initiatives, Maintaining C
Proposal Number:
21-MOF005
Posting Date:
Summary of Proposal:
The regulatory amendments implement the 2020 Ontario Budget proposal to temporarily extend timelines for Ontario's film and television tax credits to address delays due to COVID-19.
For the Ontario Film and Television Tax Credit, the regulatory amendments: allow companies an additional 24 months to file an application for a certificate of completion, resulting in a new application deadline of 48 months; extend the current two-year time period for companies to have an agreement in writing to have the film or television production shown in Ontario by an additional 24 months; and extend the claim period to allow eligible expenditures to be claimed up to 48 months before principal photography begins. These measures apply to productions for which eligible expenditures were incurred on or before March 15, 2020 and for which an application for a certificate of completion had not been filed with the Ontario Media Development Corporation or another person designated by the Minster of Culture on or before March 15, 2020.
For the Ontario Production Services Tax Credit, the regulatory amendments temporarily allow companies an additional 24 months to meet the credit's minimum spending requirements. In addition, a production cannot claim the Ontario Production Services Tax Credit until the taxation year in which principal photography begins. The regulatory amendments temporarily allow companies to claim otherwise eligible expenditures incurred in the two taxation years prior to the year in which principal photography begins. These measures apply to productions for which otherwise eligible expenditures were incurred in Ontario in taxation years ending in 2020 and 2021.
The amendments also update the regulatory provisions for the Ontario Interactive Digital Media Tax Credit to reflect legislative changes announced in the 2020 Ontario Budget and enacted on December 8, 2020, extending the time period during which eligible expenditures can be claimed for certain specified and non-specified products.
For the Ontario Film and Television Tax Credit, the regulatory amendments: allow companies an additional 24 months to file an application for a certificate of completion, resulting in a new application deadline of 48 months; extend the current two-year time period for companies to have an agreement in writing to have the film or television production shown in Ontario by an additional 24 months; and extend the claim period to allow eligible expenditures to be claimed up to 48 months before principal photography begins. These measures apply to productions for which eligible expenditures were incurred on or before March 15, 2020 and for which an application for a certificate of completion had not been filed with the Ontario Media Development Corporation or another person designated by the Minster of Culture on or before March 15, 2020.
For the Ontario Production Services Tax Credit, the regulatory amendments temporarily allow companies an additional 24 months to meet the credit's minimum spending requirements. In addition, a production cannot claim the Ontario Production Services Tax Credit until the taxation year in which principal photography begins. The regulatory amendments temporarily allow companies to claim otherwise eligible expenditures incurred in the two taxation years prior to the year in which principal photography begins. These measures apply to productions for which otherwise eligible expenditures were incurred in Ontario in taxation years ending in 2020 and 2021.
The amendments also update the regulatory provisions for the Ontario Interactive Digital Media Tax Credit to reflect legislative changes announced in the 2020 Ontario Budget and enacted on December 8, 2020, extending the time period during which eligible expenditures can be claimed for certain specified and non-specified products.
Contact Address:
Ministry of Finance
Corporate and Commodity Taxation Branch
2nd Floor Frost North
95 Grosvenor Street
Toronto, ON M7A 1Y8
Corporate and Commodity Taxation Branch
2nd Floor Frost North
95 Grosvenor Street
Toronto, ON M7A 1Y8
Effective Date:
February 12, 2021
Decision:
Approved