Ontario Book Publishing Tax Credit

Overview of the Ontario Book Publishing Tax Credit program:

The OBPTC is a refundable corporate income tax credit designed to support eligible Ontario-based book publishing companies that publish literary works by Canadian authors. Administered by Ontario Creates in partnership with the Canada Revenue Agency (CRA), the OBPTC encourages the creation and publication of Canadian-authored literature in various genres including fiction, non-fiction, poetry, biography, and children’s literature. The credit is calculated as a percentage of qualifying expenditures associated with the publishing process, such as editing, design, printing, and promotional costs. The goal is to help publishers reduce the cost of producing and marketing Canadian books, support the growth of Canadian literary culture, and strengthen the publishing sector in Ontario. Eligible publishers can apply annually for works published within their fiscal year. In addition to supporting operational costs, the program indirectly benefits authors by increasing opportunities for publication. The OBPTC is especially beneficial for small- and mid-sized publishers who depend on financial support to maintain a robust catalog of Canadian content.

Benefits of the Ontario Book Publishing Tax Credit program:

• The refundable tax credit can reach up to $30,000 per book title or 30% of the eligible expenditures incurred in relation to pre and actual book production.

Eligibility criteria of the Ontario Book Publishing Tax Credit program:

• Corporation is an eligible Ontario book publishing company for a taxation year if throughout the taxation year:
  • The corporation is a Canadian-controlled corporation throughout the taxation year, and
  • The corporation is a book publishing company that carries out its business primarily through a permanent establishment of the corporation in Ontario.
  • A Canadian-controlled corporation is generally a corporation that is more than 50% owned by Canadians, as determined under sections 26 to 28 of the Investment Canada Act (Canada).
  • A qualifying corporation must allocate more than 50% of its taxable income to Ontario in the taxation year the credit is being claimed and must have published at least two books in the 12-month period immediately before the taxation year. An exception is made regarding the requirement to have published two books in the previous year where an Ontario book publishing company has transferred its business, amalgamated or wound up its company.