The Film Tax Credit is a refundable tax credit for costs directly related to the production of films in Nova Scotia.
As of September 1, 2007 the credit rates are increased. Tax credit amounts will now be equal to the lesser of:
- 50 percent of eligible Nova Scotia labour expenditures; or
- 25 percent of total expenditures
A 10 percent geographic area bonus on labour expenditures (5 percent bonus on total expenditures) is available for films shot outside of the Halifax Regional Municipality. As well, a 5 percent frequent filming bonus is available to companies who have produced 3 films in a 24 month period.
| Film Tax Credit Rates |
| | Base Tax Credit Rates | Regional Bonus of | Frequent Filmer Credit | Total Potential Tax Credit |
| Labour Expenditures | 50% | 10% | 5% | 65% |
| Total Expenditures | 25% | 5% | 5% of Labour | 30%+5% of Labour |
EligibilityTo be eligible for this credit, a corporate must satisfy all of the following requirements.
- Be a taxable Canadian corporation.
- Must primarily be a film or video production business.
- Must have a “permanent establishment” in Nova Scotia.
- At least 25% of salaries must be paid to Nova Scotians.
To be eligible for this credit, the film must be:
- Intended for a television, cinema, videotape or non-theatrical production and the subject matter of the film is drama, variety, performing arts, an animated or informational series, a documentary or music programming.
The film
cannot be a film that has been prohibited for use or exhibition under the
Theatres and Amusements Act or be:
- A film produced to solicit funds, be a film produced primarily for industrial, corporate or institutional purposes.
- A film, other than a documentary, all or substantially all of which consists of stock footage; consist of any of the following types of programming: news, current events or public affairs, weather or market reports, talk shows, games, questionnaires or contests, other than in a film that is directed primarily at minors, sports events or activities, gala presentations or awards shows, reality television, pornography or advertising.