General Information
07.14.05: Please be advised that the guidelines have been updated to reflect recent enhancements to the tax
credit.
The Nova Scotia Film Industry Tax Credit is a fully refundable
corporate income tax credit administered by the NSFDC for the
Nova Scotia Department of Finance. The Tax Credit is a labour-based
credit that encourages the development, training and hiring
of Nova Scotia film personnel in all disciplines, which grows
the film and video industry in the province.
Eligibility
The Tax Credit is available to qualifying productions and co-productions
produced and/or shot in Nova Scotia. Production companies applying
for the Tax Credit must have a permanent establishment in Nova
Scotia (a fixed place of business, a production office, a branch
etc.) and must be incorporated under the laws of Nova Scotia,
another province of Canada, or Canada.
Eligible genres include television, videotape, feature film, non-theatrical
production or interactive websites associated with television
or feature film projects, and the subject is drama, variety, performing arts,
animated or informational series, documentary or music
programming, including music videos. There is no limit on the size of the production budget, no corporate
or asset cap, and no Canadian content or copyright ownership
requirements associated with this Tax Credit. The Tax Credit
is not reduced by any other tax credits that the production
may receive.
Calculations
The Tax Credit is calculated as the lesser of 35% of eligible
Nova Scotia labour or 17.5% of the total production costs for
productions that occur in the Halifax region ("Metro Halifax")
or the lesser of 40% of eligible Nova Scotia labour or 20%
of total production costs for productions that occur in other
regions ("Regional Zones") of the province.
Regional Zones of the province are considered to be those locations
that are located 30km driving distance or more from Halifax
City Hall. For greater clarity, this area is bounded by the
Mount Uniacke exit of Highway 101; the Halifax International
Airport exit of Highway 102; the Tantallon exit of Highway 103;
and the Porters Lake exit of Highway 107. The Regional bonus
is prorated based on the number of days principal photography
is shot outside the Halifax Region.
Application Process
To apply, producers must submit an application with a completed
Part A to the NSFDC for processing in order to determine if
the production is eligible for the Tax Credit. Once this application
is reviewed and approved by the NSFDC, a Registration Letter
will be issued to the producer that outlines the estimated amount
of tax credit that they may be entitled to receive. Producers
can often obtain interim financing using this letter. Incomplete
applications and missing documentation will delay registration.
Once the production is complete, the producer will submit a
new application with a completed Part B to the NSFDC. Once the
NSFDC reviews this application it is sent to the Nova Scotia
Department of Finance, where an authorization certificate will
be issued to the production company outlining the actual eligible
tax credit amount. Producers can file this certificate with
their corporate tax return in order to receive their refund.
Processing Fee
Applications must be accompanied by the processing fee:
Part A: $100 plus 14% HST
Part B: 0.2% of eligible Nova Scotia labour (minimum $200,
maximum $2,000 per application) plus 14% HST
On the Web:
Film
Industry Tax Credit Regulations
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