FilmOntario was pleased to see that the Fall Economic Statement (FES) includes a commitment committed to expanding support for location fees in the Ontario Production Services Tax Credit (OPSTC). Specifically, they will amend the definition of “eligible tangible property expenditures” so that all reasonable expenditures paid to an arm’s length party will now be eligible for the credit. This includes all location fees paid to restaurants, homeowners, stores, etc., (i.e. “leasing real property”) effective for expenditures incurred after November 14, 2022. The maximum eligible expenditures for leasing real property for on-location filming that can be claimed for a production will be limited to 5% of the production’s qualifying production expenditures.
The FES also re-commits to extending both the Ontario Film and Television Tax Credit (OFTTC) and OPSTC to online-only productions, which was announced in the 2022 Budget. Regulatory amendments to implement this measure will be introduced in the coming months.
As you may recall, both of these commitments are recommendations that were made by the Ministers’ Film and Television Advisory Panel, which included several FilmOntario Board members. We are delighted to see the commitments the government continues to make to working with the industry to ensure our tax credits remain effective and competitive. We look forward to continuing this work with the government and with all of our members.
The government will also be introducing a regulation to require that eligible OFTTC and OPSTC productions provide an on-screen acknowledgement of their receipt of Ontario tax credit support. This requirement will be for productions that begin principal photography after December 31, 2022.
The FES also includes continued and enhanced support for the Skills Development Fund. This Fund has been an important tool for many industry recipients who are committed to expanding and diversifying the film and television workforce.
We will continue to monitor the relevant legislative and regulatory amendments as they are introduced, and provide updates as applicable. If you have any questions, please don’t hesitate to be in touch.
You can find the relevant sections of today’s FES here.
Thank you to Premier Doug Ford, and Ministers Bethlenfalvy and Lumsden for their continued support of and collaboration with the industry. We look forward to continuing to work together to grow our industry!