Film or Video Production Services Tax Credit (PSTC)
Eligibility & Details
What this program funds and who can apply
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
Quick Assessment
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
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipUnlike 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 Playbook
Step-by-step process, required documents, and expenses
Application steps not yet documented.
Required Documents 4
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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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskVery 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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How PSTC Compares
Side-by-side with similar programs
| 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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