By Gail Haupert
Canada’s film and television industry has a stellar reputation for producing high-quality productions seen around the world. Ontario has plenty of locations that can pass as any city in the world, and a large ACTRA Performer base to help bring productions to life!
Due to the diversity in Ontario, including both within locations and with Performers, productions shooting in our province are supported by the availability of film and television production tax credits offered by the government (see the sidebar below to learn more).
Why are tax credits important? Tax credits are an appealing incentive to producers who are looking to reduce production costs. Tax credits create competitive advantages to help bring productions to shoot within ACTRA Toronto’s jurisdiction – thus bringing more work opportunities to ACTRA Toronto Performers. In addition, when producers choose to film here, it has a positive impact on the local economy, creating job opportunities in other industries and stimulating tourism.
Why should Performers care about tax credits? Performers play an important role and have a responsibility in helping productions secure tax credits. Productions rely on Performers to provide documentation* proving they are residents of Ontario so the production can demonstrate to the government it meets the labour or production expenditure requirements to be eligible to receive the tax credit(s). To meet eligibility requirements, productions are required to hire a certain number of local Performers and crew – giving ACTRA Performers a distinct advantage over non-Canadians.
A resident of Ontario is defined as an individual who, for tax purposes, was a resident in Ontario at the end of the calendar year prior to commencement of principal photography.
What are the consequences to Performers if they don’t provide documentation? Performer residency documentation is critical to a production company so it can take advantage of the available tax credits and incentives. Per the terms of the Independent Production Agreement (IPA), if a Performer fails to provide documentation in time, the production can have the Performer’s engagement cancelled and their role replaced.
*What documents can Performers use to demonstrate residency to a Production? The Canada Revenue Agency has guidelines in place, which outline the accepted documents to demonstrate proof of residency. This language is mirrored in A609 of the IPA. There are apps and programs to help Performers manage the submission of this documentation to production to keep it confidential and secure. To learn more, please visit actratoronto.com.
What are tax credits?
Film and television tax credits are financial incentives offered by various levels of government and are designed to offset production costs while encouraging regional economic development.
There are three refundable tax credits available in Ontario to support film and television production: the Ontario Film & Television Tax Credit (OFTTC) is available to eligible Ontario-based production companies; the Ontario Production Services Tax Credit (OPSTC) is available to both eligible Canadian and foreign-owned production companies filming in the province; and the Ontario Computer Animation and Special Effects Tax Credit (OCASE) is available to Ontario-based Canadian and foreign-controlled corporations. To qualify, productions must meet the required Ontario labour or production expenditures.
The OFTTC, OPSTC and the OCASE are jointly administered by Ontario Creates and the Canada Revenue Agency (CRA) and are generally “harmonized” with the federal Film or Video Production Services Tax Credit (FVPSTC). The FVPSTC is administered by the Canadian Audio Visual Certification Office (CAVCO) of the Department of Canadian Heritage and the CRA.
Did you know? A 2022 study by FilmOntario estimates that for each dollar refunded to the industry through film and television tax credits, $3.40 in GDP is generated in the province.
Gail Haupert, Director of Contracts at ACTRA Toronto, is a forward-thinking union leader with 15+ years of expertise. She is proficient in summarizing complex agreement language into easy-to-read one-page documents and is always proud to see the work done by ACTRA members, especially when viewing holiday movies of the week… even when it isn’t the holiday season! Gail was recently honoured to be appointed by the Toronto City Council to serve on the Film, Television and Digital Media Board for the 2023-2026 term.
