Federal Program

In October, 1997, the federal government introduced the Production Services Tax Credit program. Modelled after the tax credit program in existence for Canadian content domestic producers, the Production Services Tax Credit program has encouraged foreign producers to both produce in Canada and to employ Canadian residents. This refundable federal tax credit is equal to 16 % of the qualifying labour paid to Canadian residents during the making of a qualified production.

Provincial Programs

Since 1997, several provinces have announced similar labour-based tax credit programs making Canada even more attractive to foreign producers. Recognizing the importance of the incentives, the federal and several provincial governments have, over the years, increased the value of the tax credits. Depending on the Canadian province, producers can access combined federal and provincial tax credits ranging from 37 % to 70 % of eligible labour.