Corporations

Sponsorship Program

Amount:

No Fixed Amount

Type of Program:

Grants

Description:

The Sponsorship Program is designed to foster and promote the development and growth of the local film and video industry participants. It provides funding to individuals, corporations, cooperatives and not-for-profit organizations (including sectoral and service organizations) whose principle activity is in the film and video industry through three distinct programs.

The Promotional Travel Sub-Program provides funds to applicants to assist with travel-related expenses to market their products globally.

The Marketing and Distribution Sub-Program provides funds to assist with marketing-related expenses to market their products or for receptions related to marketing of these products.
The Workshop Assistance Sub-Program provides assistance to develop the local skill base.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be individuals, corporations, cooperatives and not-for-profit organizations (including sectoral and service organizations),
have their principal activity in the film and video industry,
demonstrate that their primary focus is on the development, production and distribution of film and video products, if corporations, cooperatives or not-for-profit organizations,
be at least 51% owned by a resident or residents of Newfoundland and Labrador (a person who has maintained a principal residence in Newfoundland and Labrador for at least 12 consecutive months immediately prior to the date of application to a funding program), if corporations,
have been registered or incorporated in Newfoundland and Labrador for at least one year prior to application, if cooperatives or not-for-profit organizations.
be Canadian citizens or permanent residents of Canada, if individuals,
be 18 years old or older or hold post-secondary standing, if individuals,
have earned a portion of their income from their film and video activities, if individuals,
be recognized as “professional” by their peers, if individuals.

Application Steps:

the application form and the supporting documents,

a brief report, expense claims and corresponding receipts on related activities within 30 days of completion of the activity before the disbursement of any funds.

Documentation Needed:

Applicant must submit:

a completed application form,
a written request for funds addressed to Executive Director,
detailed budget illustrating expenses and sources of confirmed or anticipated funds and contributions.

Additional documents if applying for the Promotional Travel Sub-Program:

the applicant's Resume,
detailed information on the activity,
evidence of the invitation to or registration at the event,
a travel schedule.

Additional documents if applying for the Marketing and Distribution Sub-Program:

detailed information on the project,
schedule of activities,
a marketing and distribution plan, including objectives.

Additional documents if applying for the Workshop Assistance Sub-Program:

Resume of the resource person(s),
detailed information on the courses being offered,
curriculum plan for the course, including objectives of skills to be learned,
number of potential participants per workshop,
fees charged to participants.

Program Contact:

Sponsorship - Newfoundland & Labrador Film Development Corporation

Sponsorship-Application.docx

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit

Amount:

$2,000,000

Type of Program:

Tax Credit

Description:

The Newfoundland and Labrador Interactive Digital Media (IDM) is a refundable tax credit based on eligible salaries and eligible remuneration incurred by an eligible corporation for the development of interactive digital media products during the period of January 1, 2015 to December 31, 2024 inclusive. Applicants must apply to the Minister of Finance for a tax credit certificate within six months of the end of each taxation year.

Comments on Funding:

Funding is 40% of qualifying expenditures.
Eligible expenditures include eligible salaries and 65% of eligible remuneration.
The credit value is limited to $40,000 per employee per year and $2 million per company, or group of associated companies, per year.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a corporation developing an interactive digital media product,
be primarily carrying on the business of interactive digital media development,
have a permanent establishment in the province of Newfoundland and Labrador,
be a taxable Canadian corporation,
hold a valid registration certificate under the IDM program.
be incorporated under the Corporations Act or an Act of the Parliament of Canada or another Canadian province,

Application Steps:

The application process is a two part process:

first apply for a registration certificate as an eligible corporation. It is recommended that applications be made through the NL Film Development Corporation (part I application form),

apply to the Minister of Finance for a tax credit certificate within 18 months of the end of each taxation year (part II application form),

file the T2 return.

Documentation Needed:

Applicants must submit the following with the Part I application:

incorporating documents, including any subsequent amendments since incorporation,
copy of Corporate Income Tax Return (T2) Schedules 9, 23 and 50 (Required when the corporation is associated with any other corporation,
corporate chart, if the corporation conducts business with non-arm’s length corporations,
description of the project, including: technical specifications, product documentation, storyboard, interactive features, images, text and sound,
development timeline,
list of estimated eligible salaries,
list of estimated eligible remuneration,
detailed list of estimated product costs,
financial statements for the preceding taxation year.

Applicants must submit the following with the Part II application:

financial statements for the taxation year in which the credit is being claimed,
individual declaration of residency forms to support Schedule B (Eligible Salaries),
statement of eligible remuneration form to support Schedule C (Statement of Remuneration),
workplace health and safety compensation commission of Newfoundland and Labrador annual employer payroll statement for the taxation year,
proof of payment for eligible remuneration paid within 60 days after the end of the taxation year as indicated in Schedule C.

Program Contact:

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit

Interactive Digital Media Tax Credit Registration Form (PART I)

Interactive Digital Media Tax Credit Certificate Application (PART II)

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit – Guidelines

Film and Video Tax Credit

Amount:

$5,000,000.00

Type of Program:

Tax Credit

Description:

The Film and Video Tax Credit is a refundable provincial corporate income tax credit and is provided for eligible local film projects at a rate of 40% of eligible local labor costs, but may not exceed 25% of production costs.

Comments on Funding:

Funding is 40% of eligible local labor costs, but may not exceed 25% of production costs. The maximum tax credit within a 12 month period that may be received by an eligible corporation, together with all corporations associated with that corporation, in respect of all eligible projects commenced on or after July 1, 2021 is $5,000,000.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a corporation incorporated under the Corporations Act or an Act of the Parliament of Canada or of the legislature of a province and have a permanent establishment in the province,
primarily carry on the business of film, television or video production,
pay at least 25% of salaries and wages with respect to an eligible project in Newfoundland and Labrador to eligible employees (for work performed in the province),
be producing an eligible project (a film television program or series or video program and the subject of the proposal is drama, variety, animation, children’s programming, music programming, an informational series or a documentary).

Application Steps:

first apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production,

apply for the tax credit once the project is completed, and financial statements and cost reports finalized,

attach the tax credit certificate to the T2 return.

Documentation Needed:

Applicants must provide the following information:

the estimated total production costs and the estimated eligible salaries,
the estimated value of the tax credit
a financing plan including recoupment schedule,
the expected revenue from the sale of the production,
a script,
other information the minister may require.

Other Things to Note:

The Film and Video Tax Credit is administered by the Newfoundland and Labrador Film Development Corporation (NLFDC) for the Newfoundland and Labrador Department of Finance.

Program Contact:

Film and Video Tax Credit

NLR 3/99 - Film and Video Tax Credit

Newfoundland and Labrador Film Tax Credit

Innovation Equity Tax Credit

Amount:

$ 112,500

Type of Program:

Tax Credit

Description:

The Innovation Equity Tax Credit (Innovation ETC) is a non-refundable personal and corporate income tax credit available to eligible investors who invest in an approved corporation. The credit is meant to encourage investors to make equity capital investments in eligible Nova Scotia small and medium corporations engaged in innovative activities.

Comments on Funding:

The credit is equal to 35% of eligible investments made in approved corporations, up to $ 87,500.

It increases to 45% for eligible investments made in approved corporations in eligible classifications within the oceans technology and life sciences sectors, up to $ 112,500.
The maximum annual investment amount is $250,000.

For corporations, the credit is equal to 15% of the eligible investment. The minimum investment amount is $50,000 and the maximum annual investment amount is $500,000.

When It Ends:

Ongoing

Deadline:

March 1, 2024

Eligibility:

The applicant must:

be a taxable Canadian corporation,
carry-on a business in Nova Scotia (and be registered in Nova Scotia),
be incorporated less than 10 years ago,
have its head office in Nova Scotia,
use all or substantially all of its assets in an active business,
have less than $15 million in assets (including assets of associated corporations),
have fewer than 100 employees (including employees of associated corporations),
pay at least 50% of its remuneration to employees or full-time contractors who are residents of Nova Scotia and report to or deal with a permanent establishment of the corporation in Nova Scotia,
have authorized capital consisting of at least 1 class of common voting shares,
be developing or implementing new technologies or applying existing technologies in a new way to create new products, services or processes.
not fall under any of the restrictions below:

its principal business includes: construction, developing, leasing or selling real property, hotel ownership or management, retail, including food and beverage services, oil or gas exploration, development and production, film, digital animation, or digital media, membership based recreational activities, financial or insurance services,
it is incorporated for a self-regulated professional practice,
it is a business for which public financial support would be contrary to public policy,
it has been issued a Film Industry Tax Credit, Digital Media Tax Credit, Digital Animation Tax Credit, or Capital Investment Tax Credit,
it has been approved for or received a payroll rebate or an innovation rebate from Nova Scotia Business incorporated,
it has raised (along with all associated corporations) more than $5 million through previous specified issues.

An eligible investor is an individual who is a resident of Nova Scotia and at least 19 years of age or a taxable Canadian corporation which is registered to carry on business in Nova Scotia, has its head office in Nova Scotia, and is not a qualifying venture capital fund under section 27B of the Income Tax Act (Nova Scotia).

Application Steps:

The applicant must:

apply for a Certificate of Registration before accepting investments from eligible investors by submitting the completed application packages via email to the Innovation ETC Administrator.

Issue eligible investments to eligible investors through a specified issue.

apply for Tax Credit Certificates on behalf of all eligible investors who made eligible investments during the time the corporation was registered under the program. The application for Tax Credit Certificates must be received by the department within 6 months of the expiry date on the corporation's Certificate of Registration.

submit an annual return to the Innovation ETC administrator for each of the 4 years after the expiry date on the certificate of registration.

Documentation Needed:

To apply for the Certificate of Registration the applicant must submit:

the completed and signed application form,
the financial statements for the previous tax year, together with a review engagement report or auditor’s report, for the applicant corporation and for all corporations associated with the applicant corporation,
T2 Corporate Income Tax Return for the previous tax year of the applicant corporation and of all corporations associated with the applicant corporation (including all forms and schedules),
an up-to-date and notarized shareholder’s register,
the corporate chart/structure, if applicable,
the shareholder agreements, if any,
the debenture agreements, if any,
the proposed investor forms completed by all proposed eligible investors,
a brief business plan,
the Certificate of incorporation, constitution/articles of incorporation and memorandum of association.

To apply for the Tax Credit Certificates the applicant must submit:

the completed Application Form,
the up-to-date and notarized shareholder’s register,
an Investor Data Report in Excel,
copy of each share certificate or convertible debenture issued to each eligible investor showing the terms of the share/debenture,
a signed statement from an authorized officer of the corporation.
signed statements from each eligible investor,
proof of payment from each eligible investor displaying the amount invested and date of investment.

Other Things to Note:

This tax credit was previously available only to individuals.

Program Contact:

Nova Scotia Department of Finance - Innovation Equity Tax Credit

Innovation-ETC Guidelines.pdf

Digital Animation Tax Credit (DATC)

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Nova Scotia Digital Animation Tax Credit (DATC) is a refundable provincial corporate income tax credit which provides incentive for digital-animation productions that start key animation before January 1, 2026.

Comments on Funding:

The DATC is the sum of the:

1
50% of qualifying expenditures deducted by total assistance,
2
17.5% of eligible digital animation labour expenditures.

When It Ends:

Ongoing

Deadline:

January 1, 2026

Eligibility:

The applicant must:

be incorporated in Canada either federally or in one of provinces and be a taxable Canadian corporation,
have a “permanent establishment” in Nova Scotia,
be Canadian-controlled and primarily engaged in film or video production (more than 50%),
not be a labor-sponsored venture capital corporation or registered as an Equity Tax Credit company or a Community Economic Development Investment Fund under subsection 3(2) or 11(2) of the Equity Tax Credit Act,
demonstrate that it owns the property rights of the production or have the authorization of the property rights owner to claim the DATC.

Application Steps:

The applicant must submit:

a mandatory Part A application before principal photography or key animation of the digital animation production begins and receive an "eligibility certificate" before an application for the Tax Credit Certificate can be made.

a Part B application for a Tax Credit Certificate once he obtained the eligibility certificate and no later than 30 months after the end of the taxation year in which the expenditures for the eligible production were made.

Documentation Needed:

The applicant must submit the following documentation in support of his Part A application form:

a completed, signed and dated Part A application form,
the Synopsis & Script/Treatment of the production,
a detailed locked budget signed and dated by the Producer,
the Certificate of Incorporation,
the Shareholder Registers (for both the applicant and parent company),
the Production Service and/or Co-production agreements, if applicable,
the Broadcaster/Distribution agreement, if applicable.

The applicant must submit the following documentation in support of his Part B application form:

a completed, signed and dated Part B application form,
statements detailing the expenditures of the eligible digital animation production (Producers Affidavit, Review Engagement Report or Audit Report),
the Production Service and/or Co-production agreements, if applicable,
the Eligibility Certificate,
the Certificate of Election, if not provided in the Part A application,
the Broadcaster/Distribution agreement, if applicable.

The applicant must also submit the original or a copy of the tax certificate issued by the province with his return.

Other Things to Note:

The source for both eligibility criteria and documentation is the guideline available on the website of Nova Scotia's Government, which was not updated since June 2018.

Program Contact:

Nova Scotia Department of Finance - Digital Animation Tax Credit

Digital Animation Tax Credit Guidelines

Nova Scotia digital animation tax credit