Quebec Tax Credit for Film Production Services (QC-PSTC)

Insider Tip

Apply for an Advance Ruling early if your production has significant pre-production Quebec spend — this locks in your eligibility before you commit major expenditures. File with SODEC BEFORE your taxation year ends: 'no deadline' applies to the portal, not to the entitlement, and a late filing costs you the claim for that year. The CASE improvement (16% additional on animation/VFX labour) is substantial, but where that work runs through a service contract it is capped at 65% of the admissible contract cost — SODEC publishes the effective rate as 26.65%, so build your model on that, not on 41%. Document all labour costs by category carefully. Remember that government AND non-government assistance reduces the qualified cost base dollar for dollar. Productions must display the SODEC logo in end credits — failing to do so can affect future certification. Revenu Québec requires the SODEC Approval Certificate before the credit is paid.

Success Profile

A Quebec-incorporated corporation whose activities are primarily in the film and television business, providing film or television production services — either a domestic service company completing work for an international production, or an independent producer creating a qualifying production with substantial Quebec production spend. Ideal claimants have high Quebec-based labour costs and significant VFX/animation work. International studios outsourcing post-production to Quebec studios are the primary target beneficiary — and that is exactly the case where the 16% improvement is capped at 65% of the admissible contract cost, so model the outsourced scenario at the published 26.65% effective rate rather than 41%.

Evaluation Criteria

Entitlement program — no competitive scoring. SODEC reviews applications to confirm the production qualifies as an eligible format (not a commercial, music video, etc.), that the corporation has a Quebec permanent establishment and activities primarily in the film and television business, that it is not tax exempt or controlled by a tax-exempt corporation and does not hold — and is not non-arm's-length to a holder of — a CRTC broadcasting licence, that the global minimum budget is met, and that key creatives are Quebec fiscal residents. Compliance review, not competitive adjudication.

Application Steps

Required Documents 7

Eligible Expenses 6

• Wages and salaries (including payroll taxes) for Quebec-resident employees performing qualifying services
• Costs of qualified properties used in Quebec for the production
• Computer-aided animation and special effects labour (for CASE bonus)
• Chroma-key shooting costs (for CASE bonus)
• Post-production services performed by Quebec-resident technicians
• VFX artist and supervisor labour costs

Ineligible Expenses 6

• Expenses for work performed outside Quebec
• Salaries for non-Quebec-resident key creatives (producers, directors, directors of photography, actors with speaking roles)
• Commercials, music videos, reality television, award shows, news programs
• Financing costs and interest
• Costs recovered from international co-production partners
• Quebec Sales Tax (QST) recoverable amounts

Claim timing

Continuous rolling intake — applications accepted at any time via SOD@ccès. Two entitlement deadlines apply regardless: file with SODEC before the end of the taxation year you want to claim for, and get all required documents to Revenu Québec by the later of 12 months after that return's filing deadline and three months after the later of the advance ruling date and the approval certificate date.

Deadline Notes

Rolling program with no annual intake window. Applications for an Approval Certificate or Advance Ruling can be submitted at any time via the SOD@ccès portal. Two real deadlines still bind: (1) applications must be filed with SODEC before the end of the taxation year in which the eligible corporation wants to claim with Revenu Québec — file after your year end and you cannot claim for that year; (2) all required documents must be sent to Revenu Québec on or before the later of the day that is 12 months after the filing deadline for the return for the taxation year concerned, and the day that is three months after the later of the day the favourable advance ruling was given and the day the approval certificate was issued. Productions must obtain certification from SODEC before claiming the credit on their Revenu Québec return.

Ineligible Organizations

• Tax-exempt corporations, and corporations controlled by a tax-exempt corporation
• Holders of a broadcasting licence issued by the CRTC, and corporations that are not at arm's length to a corporation holding such a licence
• Corporations whose activities are not primarily in the film and television business
• Corporations without a permanent establishment in Quebec
• Non-incorporated entities (sole proprietors, partnerships)
• Productions with global budgets under CAD $250,000

Compatible Programs

Clawback Risk

Low clawback risk — the credit is an entitlement based on qualifying expenditures. If Revenu Québec or CRA audits find that claimed expenses were not eligible (e.g., non-Quebec labour incorrectly classified), the credit is adjusted or reassessed rather than fully clawed back. Full repayment is required only if the SODEC certification was obtained fraudulently.