Tax Credit for the Production of Multimedia Titles

Overview of the Tax Credit for the Production of Multimedia Titles program:

This measure is designed to encourage the production of multimedia titles in Québec. Eligible corporations can obtain a refundable tax credit.

Benefits of the Tax Credit for the Production of Multimedia Titles program:

• This measure is designed to encourage the production of multimedia titles in Quebec. Eligible corporations can obtain a refundable tax credit. The refundable tax credit may amount to 37.5% of eligible labour expenditures.

Eligibility criteria of the Tax Credit for the Production of Multimedia Titles program:

• Eligible Corporations
• Your corporation may be eligible if it has an establishment in Quebec and produces eligible multimedia titles.
• Eligible Multimedia Titles
• Titles must be published on an electronic medium, controlled by software allowing interactivity, and contain a substantial volume of three of the following four types of information: text, sound, still images, and animated images. Video images are considered as only one media component.
• Related titles such as digital animation films associated with an eligible multimedia title produced by your corporation are also eligible. However, the labor expenditure related to the main multimedia title with which the related title is associated must be at least $1 million.
• Eligible Production Work
• Eligible production work in relation to a title refers to work carried out for the purpose of completing the production stages of the title, commencing with the design stage, and indefinitely thereafter.
• Eligible Labor Expenditures
• Expenditures must be incurred by the producer for eligible production work. Eligible labor expenditures include all of the following amounts:*
• Salaries and wages paid to eligible employees;
• The portion of amounts paid to a subcontractor not dealing at arms length with the multimedia producer for the execution of eligible production work by employees of the subcontractor in an establishment in Quebec;
• 50% of the amounts paid to a subcontractor dealing at arms length with the multimedia producer for the execution of eligible production work in Quebec.
• Specific Requirements
• To be entitled to the tax credit, your corporation must first have a valid initial qualification certificate issued by Investissement Quebec certifying that the title produced or to be produced satisfies the requirements in effect. Subsequently, your corporation must obtain, for every fiscal year for which it wishes to claim the tax credit, an annual eligibility certificate regarding the production work related to the eligible multimedia title.
• Additional Resources:
• Http://www.investquebec.com/quebec/en/financial-products/smbs-and-large-corporations/tax-credits/production-of-multimedia-titles.html