The Film Industry Tax Credit is a refundable tax credit for costs directly related to the production of films in Nova Scotia.
For production which started principal photography after November 30, 2010 the tax credit amount consists of:
- 50 percent of the company’s Eligible Salaries
- additional 10 percent bonus for films shot inside the Eligible Geographic Area (EGA)
- additional 5% for production companies who have made three films in a two year period
| Film Industry Tax Credit Rates as of November 30, 2010 |
| | Base Tax Credit Rates | EGA Bonus | Frequent Filmer Credit | Total Potential Tax Credit |
| Eligible Salaries | 50% | 10% | 5% | 65% |
For productions which started principal photography after September 30, 2007 and before December 1, 2010 the Film Industry Tax Credit Rate is calculated as the lesser of (A) and (B) according to the table below.
| Film Industry Tax Credit Rates Sept 1, 2007-Dec 1, 2010 |
| | Base Tax Credit Rates | EGA Bonus | Frequent Filmer Credit | Total Potential Tax Credit |
| Eligible Salaries | 50% | 10% | 5% | (A) 65% |
| Total Production Costs | 25% | 5% | 5% of Eligible Salaries | (B) 30% of Total Production Costs plus 5% of Eligible Salaries |
Eligibility for the Nova Scotia Film Industry Tax CreditTo 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.
How to Apply
To get the credit, corporations must apply to the Nova Scotia Department of Finance and Treasury Board and meet the eligibility criteria. Download the Film Industry Tax Credit information and application forms (ZIP file)