Updated March 2026 · Verified against Canadian Audio-Visual Certification Office (CAVCO) / CRA guidelines
Tax Credit Offset
Tax Credit Federal Active

Film or Video Production Services Tax Credit (PSTC)

Canadian Audio-Visual Certification Office (CAVCO) / CRA
Maximum Funding
16% of eligible costs
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Tax Credit Offset
Trend
Stable
First-Timers
Co-Funding
16%
Film or Video Production Services Tax Credit (PSTC) provides up to 16% refundable tax credit on qualifying Canadian labour tax credit of 16% on qualifying Canadian labour expenditure for taxable Canadian corporations providing film and video production services in Canada. Applications are accepted on an ongoing basis.

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Refundable tax credit of 16% on qualifying Canadian labour expenditure for taxable Canadian corporations providing film and video production services in Canada. Unlike the CPTC, there is no Canadian content requirement — this credit is designed to attract foreign productions to shoot in Canada. Minimum Canadian labour spend of $1M per project or 75% of total production cost if less.

Eligibility Requirements

  • Taxable Canadian corporation providing production services in Canada
  • No Canadian content requirement
  • Total production cost must exceed $1,000,000 (or $100,000-$200,000 per episode for series)
  • Must obtain CAVCO Accreditation Certificate
Provinces
All Provinces
Industries
Film Media Television Creative Industries
Business Stage
Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Not rated

Funding Details

Amount
16% refundable tax credit on qualifying Canadian labour
Type
Tax Credit
Level
Federal
Co-Funding
Up to 16% of eligible costs
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
Low
Effort
Varies
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%

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Approval likelihood, realistic amounts, competition level, and what winners look like
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What You Need to Get Approved
Everything reviewers look for — so you apply with confidence, not guesswork

How to Win

Insider tips, common pitfalls, and what successful applicants look like

Premium
Insider Tip

Unlike CPTC, there's no Canadian content requirement — this is designed for foreign productions shooting in Canada. The 16% federal credit stacks with provincial service credits (BC PSTC 36%, Ontario OPSTC 21.5%) making Canada globally competitive. Minimum Canadian labour spend of $1M per project or 75% of total if less.

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Success Profile

A Canadian production services company hired by a US studio to produce a $20M TV series in Vancouver, claiming 16% federal PSTC on $8M in Canadian labour = $1.28M federal credit.

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Application steps not yet documented.

Required Documents 4

CAVCO Accreditation Certificate application
Canadian labour expenditure breakdown
T2 corporate tax return with PSTC schedule
Production agreement and budget

Eligible Expenses 5

  • Salaries and wages paid to Canadian residents working on the production
  • Amounts paid to Canadian-resident individuals providing production services (contractors)
  • Remuneration to Canadian residents for services rendered in the production stages
  • Expenditures directly attributable to the production from final script to end of post-production
  • All categories on T1177 lines 601-609: performing, production, post-production labour

Ineligible Expenses 8

  • Amounts paid to non-Canadian residents
  • Costs not directly attributable to the specific production
  • Development costs before the final script stage
  • Distribution, marketing, or promotion costs
  • Equipment purchases or rental (only labour qualifies for PSTC)
  • Location costs, set construction materials, props (non-labour)
  • Costs incurred more than 60 days after tax year end (for that year's claim)
  • Insurance, financing, and legal costs (non-labour)

Deadline Notes

No deadline — available continuously. Obtain CAVCO Accreditation Certificate for the production, then claim on T2 return.

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Compatible Programs

BC Production Services Tax Credit Ontario Production Services Tax Credit (OPSTC) Manitoba Film and Video Tax Credit Quebec Film and Television Production Tax Credit Location-Specific Bonuses
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

Very low. Entitlement-based credit with no performance conditions. CRA may reassess if documentation does not support claimed amounts, but this is an audit risk, not a clawback risk. Ensure all claimed expenditures are properly documented with payroll records and T4s. CAVCO may revoke accreditation if the production is found to be an excluded genre, which would trigger CRA reassessment.

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See your total funding potential across 5 programs
Stacking amounts, clawback details, government stacking limits, and tax implications
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How PSTC Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Film or Video Production Services Tax... 16% Easy Tax Credit Offset Ongoing
BC Production Services Tax Credit (PSTC) 36% Moderate Tax Credit Offset Open (rate increased to...
Interactive Digital Media Tax Credit 25% of eligible BC Moderate Tax Credit Offset Ongoing
Creative Industries Funding Varies Moderate Reimbursement Ongoing (multiple...
Canada Media Fund up to $250K Hard Mixed (Advance + Reimb.) Ongoing (multiple...

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