Atlantic Canada Business Grants

Department of Finance

Film and Video Tax Credit

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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:

1

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

2

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

3

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 industry tax credit is a fully refundable corporate income tax credit administered on behalf of the Department of Finance by the Newfoundland & Labrador Film Development Corporation (NLFDC).

Program Contact:

Film and Video Tax Credit

NLR 3/99 - Film and Video Tax Credit

Newfoundland and Labrador Film Tax Credit


Venture Capital Tax Credit

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Amount:

$75,000

Type of Program:

Tax Credit

Description:

The Venture Capital Tax Credit Program (VCTC) is a provincial non-refundable tax credit available for both individual and corporate investors, but not trusts, equal to 30% of the amount invested in the qualifying venture capital fund (QVCF) through the purchase of limited partnership units or newly issued shares.

Comments on Funding:

Funding is a non-refundable tax credit equal to 30% of the amount invested in a Qualifying Venture Capital Fund.
The maximum tax credit available to a qualifying investor is $75,000. As a non-refundable tax credit, the VCTC can be carried back 3 years and forward 7 years (but not prior to 2014).

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • be individual or corporate investors that purchase shares in the fund, which then uses capital raised from investors to make equity investments in qualifying businesses (business activities include intellectual property, information technology, clean, ocean and marine technologies, life sciences and new media sectors and manufacturing and processing of value-added goods for export),
  • hold the shares for a minimum 5 years or the tax credit has to be repaid in proportion to the amount of time the shares were held

Application Steps:

No specific steps have been identified. 

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Decisions on investments will be made by the fund manager, Venture Newfoundland and Labrador Limited Partnership.

The Province of Newfoundland and Labrador in no way guarantees the value of any shares issued by a qualifying business under the VCTC program nor does it in any way express an opinion as to the financial condition of the issuing company or the merits of any investments made under the program.

Program Contact:

Venture Capital Tax Credit

FAQ Venture Capital Tax Credit

Insert Content Template or Symbol

Small Business Tax Rate

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Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Small Business Tax Rate provides small business owners in Newfoundland and Labrador a reduced rate of 3% to determine the corporate income tax payable.

Comments on Funding:

The support is a reduced rate of 3% to determine the applicant's corporate income tax payable instead of the general corporate income tax rate of 15%.
The reduced rate of 3% applies to the first $500,000 of active business income earned in the province and that qualifies for the federal small business deduction. 

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • be a small business,
  • be a Canadian controlled private corporation (CCPC),
  • maintain a permanent establishment in Newfoundland and Labrador,
  • carry on an active business in the province.

Application Steps:

1

can use Schedule 307, Newfoundland and Labrador Corporation Tax Calculation, to help the applicant calculate the Newfoundland and Labrador tax before the credits are applied. 

2

must enter the amount of tax calculated on line 200 and/or 205 of Schedule 5, Tax Calculation Supplementary – Corporations.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

The Federal Government administers the Small Business Tax Rate on behalf of the Province.

Program Contact:

Small Business Tax Rate

Newfoundland and Labrador – Provincial corporation tax

Political Contributions Tax Credit

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Amount:

$500

Type of Program:

Tax Credit

Description:

The Political Contributions Tax Credit is a non-refundable tax credit on contributions made to registered political parties, registered district associations or registered non-affiliated candidates.

Comments on Funding:

The Political Contribution Tax Credit is equal to the lesser of $500 or the sum of:

  • $75% of the total contribution amount if the total amount does not exceed $100,
  • $75 plus 50% of the contribution amount by which the total amount exceeds $100 if the total amount exceeds $100 and does not exceed $550, or
  • $300 plus 33 1/3% of the contribution amount by which the total amount exceeds $550 if the total amount exceeds $550.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

Application Steps:

1

Applicants must file the corporation’s T2 Corporation Income Tax Return together with the official receipts for political contributions.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

No other details available.

Program Contact:

Political Contributions Tax Credit

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit

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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 18 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:

1

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),

2

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),

3

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.

Other Things to Note:

No other details available.

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