This measure is designed to support the production of multimedia titles in Quebec. Eligible corporations can obtain a refundable tax credit.  

ELIGIBILITY CRITERIA

Eligible Businesses

Your corporation may be eligible if it owns a facility in Quebec in which it operates a corporation producing multimedia titles.

Eligible Multimedia Titles

• Most titles produced for commercial distribution purposes, as well as commissioned products.
• Titles must be produced in an electronic medium, be run using software that supports interactivity, and present, in significant proportions, at least three of the following four types of data: text, sound, still images, moving images. Note that video footage will be considered as one multimedia component only.
• Related titles such as digital animation films tied to an eligible multimedia title produced by your corporation. However, the labour expenditure related to the principal multimedia title with which the related title is associated must be at least $1 million.

Eligible Production Work

• At the production stage, all work necessary for the production of the multimedia title, from design to perfecting of the final version ready for marketing purposes.
• At the marketing stage, work done during the 36 months following the date the final version is perfected.

Eligible Labour Expenditures

Expenditures must be incurred by the producer for eligible production work. Eligible labour expenditures include all of the following amounts:*

• Salaries and wages paid to eligible employees;
• The portion of amounts paid to a sub-contractor having a non-arm's-length relationship with the multimedia producer for execution of eligible production work performed by employees of the sub-contractor in a facility located in Quebec;
• 50% of amounts paid to a sub-contractor having an arm's length relationship with the multimedia producer for execution of eligible production work in Quebec.

* Note that eligible labour expenditures correspond to the labour expenditures listed here, less the amount of government and/or non-government assistance related thereto.

Special Requirements

To be entitled to the tax credit, your corporation must first have a valid initial eligibility certificate issued by Investissement Québec certifying that the title produced or to be produced satisfies the rules in effect. Subsequently, your corporation must obtain, for each fiscal year for which it is entitled to claim the tax credit, an annual eligibility certificate regarding the production work relating to the eligible multimedia title.

DETAILS OF TAX ASSISTANCE

Eligible Title Categories

For the purposes of this tax credit, there are two categories of eligible multimedia titles:

• Category 1: Titles produced without being part of a commission and destined for commercial markets; titles must be aimed at a wide audience and be subject to a structured marketing approach.
• Category 2: Other multimedia titles.

Nature of Assistance

Refundable tax credit. For titles for which production began after June 12, 2003, credits are calculated as follows:

Fees

Fees are charged for analysis of all eligibility certificate applications. For more information, contact an Investissement Québec advisor, or see the rates schedule on our Web site.

PROCEDURE

Step 1

Contact an Investissement Québec advisor, who will answer your questions and tell you where to get a copy of the initial application form for an eligibility certificate on our Web site.

Step 2

Complete the form and send it to Investissement Québec.

You can also take advantage of our Financing of Refundable Tax Credits program.

Mars 2010