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Tax Credit

For productions commencing principal photography on or after December 1st, 2010:

- the film tax credit will be calculated based on eligible Nova Scotia labour without any cap

- the definition of an eligible employee has changed. To be eligible, one must be a resident in Nova Scotia for tax purposes during the project or production period. This entails more than simply living here - it requires that the individual's main residential and financial ties are with Nova Scotia and not another province. In addition to a permanent residence,  evidence of being 'resident for tax purposes' might include having their bank accounts here, NS driving license, NS health card, spouse/children have moved here as well, etc.

For questions regarding the Nova Scotia Film Industry Tax Credit guidelines or application, please contact Film & Creative Industries Nova Scotia at 902.424.7177 or by email at filmandcreativens@gov.ns.ca

 

Download Guidelines and Application

This program is a fully refundable corporate income tax credit. It is a labour-based credit that encourages the development, training and hiring of Nova Scotia film personnel in all disciplines. Film Nova Scotia administers this program on behalf of the Nova Scotia Department of Finance. The credit currently ranges from 50% to 65%.

Eligibility

The Tax Credit is available to qualifying productions and co-productions produced and/or shot in Nova Scotia. Production companies applying for the Tax Credit must have a permanent establishment in Nova Scotia (a fixed place of business, a production office, a branch etc.) and must be incorporated under the laws of Nova Scotia, another province of Canada, or Canada.

Eligible genres include television, videotape, feature film, non-theatrical production and the subject is drama, variety, performing arts, animated or informational series, documentary or music programming, including music videos. There is no limit on the size of the production budget, no corporate or asset cap, and no Canadian content or copyright ownership requirements associated with this Tax Credit.

Calculations

The Tax Credit is calculated as 50% of eligible Nova Scotia labour for productions that occur in the Halifax region (Metro Halifax) or 60% of eligible Nova Scotia labour  for productions that occur in other regions (Eligible Geographic Areas) of the province, for productions commencing principal photography on or after December 1, 2010.

For productions commencing principal photography prior to December 1, 2010, the Tax Credit is calculated as the lesser of 50% of eligible Nova Scotia labour or 25% of total production costs for productions that occur in the Halifax region (Metro Halifax) or the lesser of 60% of eligible Nova Scotia labour or 30% of total production cost for productions that occur in other regions (Eligible Geographic Areas) of the province.

Eligible Geographic Areas (EGA) of the province are considered to be those locations that are located 30km driving distance or more from Halifax City Hall. If less than 50% of the days of principal photography are shot outside Metro Halifax, the Regional bonus is prorated based on the number of days principal photography is shot outside the Halifax Region.

A frequent filming bonus of 5% of eligible Nova Scotia labour is available if a third film commences principal photography within a two-year period.

Application Process

To apply, producers must submit a completed Part B application to Film Nova Scotia for processing. Complete applications must be received within 30 months of the taxation year in which eligible expenses were incurred and paid. Once Film Nova Scotia reviews this application it is sent to the Nova Scotia Department of Finance, where an authorization certificate will be issued to the production company outlining the actual eligible tax credit amount. Producers can file this certificate with their corporate tax return in order to receive their refund.

Applications must be accompanied by the processing fee of 0.2% of eligible Nova Scotia labour (minimum $200, maximum $2,000 per application) plus 15% HST.