Frequently Asked Questions
Is the Tax Credit reduced by other tax credits?
The Nova Scotia Film Industry Tax Credit is not reduced by any
other tax credits that the producer may receive.
What is considered "eligible labour"?
Eligible labour includes amounts paid to eligible individuals
or eligible employees of the corporation for services rendered
which are directly attributable to the production of the film
or television show. Also, amounts paid to another corporation
are eligible if they are providing labour and the amounts do
not exceed amounts paid to employees for the same services.
When claiming third party labour cost, including incorporated
individuals, suppliers must provide an affidavit, with supporting
documentation, attesting to the percentage of Nova Scotia labour
represented in the invoiced amount. Eligible labour includes
costs incurred from the end of the final script stage to the
end of post-production and includes all "above-the-line" and
"below-the-line" personnel. Wages and salary paid for work outside
the province would also qualify, as long as these amounts are
paid to Nova Scotia residents.
Who are considered "eligible individuals" or "eligible employees"?
"Eligible individuals" or "eligible employees" are persons who
were resident in the province on the last day of the previous
or current taxation
year. The determination of residency is based on the Federal
Income Tax Act and is accepted as the province where you normally
live, i.e. pay rent, maintain bank accounts and drivers license,
and where you file your personal tax return.
Are deferrals eligible for the Tax Credit?
In order to qualify for the credit, the salaries and wages must
be paid out within sixty days of the corporation's year-end.
Amounts that will not actually be paid or are contingent on
some future event, i.e. profit participation, do not qualify.
What types of productions qualify?
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.
The following types of productions are not eligible:
news, current events or public affairs programming; programs
that include weather or market reports; talk shows; sports events;
gala presentations or award shows; projects that solicit funds;
pornography; advertising; projects produced primarily for industrial,
corporate or institutional purposes; projects (other than documentaries)
which substantially contain stock footage.
Is the Tax Credit reduced by amounts received from the government?
The Nova Scotia Film Industry Tax Credit is not reduced by any
other film industry tax credits, Federal or Provincial. It is
reduced, however, by amounts that are considered "government
assistance," which includes "assistance from a government, municipality
or other public authority whether as a grant, subsidy, forgivable
loan, deduction from tax, investment allowance or as any other
form of assistance." This would include items such as employment
insurance subsidies, or grants received directly from the government
as an incentive.
Are there any caps on the Tax Credit?
There are no dollar caps per production or per producer. The
Tax Credit is designed to encourage spending on Nova Scotia
labour. The more eligible labour that you use the more Tax Credit
you can receive.
How can I be sure that the labour I am using would qualify?
To make sure that the people you are hiring would be considered
eligible for the Tax Credit, you must have them complete and
sign a "Declaration of Residency" form. These declarations must
be completed and maintained by the producer.
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