Tax Credit - CANADA, Manitoba

http://www.mbfilmmusic.ca/
The Manitoba Film and Video Production Tax Credit, which was set to expire March 1, 2011, has been extended to March 1, 2014, and production companies may now elect to claim a new tax credit based on a wider range of production costs incurred and paid.

Since 1997, a refundable tax credit for film and video productions has been available, based on eligible salaries paid to Manitoba residents and qualifying non-resident employees ("deemed residents") for work performed on an eligible film or video produced in Manitoba. When the program began, the rate of the credit was 35%; since March 9, 2005, the basic rate of the credit has been 45%.

Salary associated with a deemed resident who trains two or more Manitoba residents cannot exceed 30% of eligible salaries paid to Manitoba residents; or 10% if only one Manitoba resident is trained.

A 5% Manitoba producer bonus applies based on eligible salaries where a Manitoba resident receives credit as a producer on an eligible film.

A frequent filming incentive is also provided. A corporation that produces three eligible films in two years earns the additional credit on eligible salaries paid with respect to the third qualifying production. For productions commencing principal photography before January 1, 2008, the frequent film bonus is 5% and the percentage of eligible salaries associated with deemed residents is 20%. For productions commencing principal photography on or after that date, the frequent film bonus is 10% and the percentage of eligible salaries associated with deemed residents is 30%.

A 5% rural and northern incentive is provided based on eligible salaries paid for work performed in Manitoba on productions where a permanent establishment of the applicant corporation is located, and 50% of principal photography days took place, at least 35km from Winnipeg.

With the Manitoba producer bonus, the frequent filming incentive, and the rural and northern incentive, a film that meets all program criteria may now earn a maximum 65% credit on eligible salaries.

Starting with productions that commence principal photography after March 2010, production companies will be able to elect to claim either the film tax credit based on up to 65% of eligible labour costs (described above), or a new 30% tax credit based on production costs incurred and paid, for labour, goods, and services provided in Manitoba that are directly attributable to the production of an eligible film.

The following changes are also proposed, effective March 24, 2010:

production companies may file Form T2029, Waiver in Respect of the Normal Reassessment Period, to extend their application deadline by 18 months; amendments to the governing legislation will be made to provide the Province with greater flexibility to make changes in response to external changes; and federal limitation periods will be adopted for filing a Manitoba film tax credit certificate with the Canada Revenue Agency.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!