Incentives for Businesses Operating in Atlantic Canada
Tax By Jim Cruickshank and Joel Reed E
ach of the Atlantic provinces offers tax incentives to businesses. This article offers a brief overview of the incentives in each province, and compares the features of key incentive programs that are offered by
more than one province.
DIGITAL MEDIA/FILM TAX CREDITS Nova Scotia offers both a Film Tax Credit and a Digital Media Tax Credit. Both credits are fully re- fundable. The Film Tax Credit is calculated as 50 per cent of a corporation's "eligible salaries" (60 per cent if the film is shot outside the Halifax metro area), with a 5 per cent bonus for frequent producers of films in Nova Scotia. The Digital Media Tax Credit is
4 SPRING 2012 DOING BUSINESS IN ATLANTIC CANADA
the lesser of 50 per cent of eligible Nova Scotia labour expenditures, or 25 per cent of total expenditures in Nova Scotia (60 per cent or 30 per cent if the digital media is developed outside of the Halifax Regional Municipality).
Newfoundland and Labrador offers a fully re- fundable Film Tax Credit, in an amount equal to the lesser of 40 per cent of eligible labour expenditures or 25 per cent of total production costs. Pre-approval of projects by the government is required. The pro- gram will in some cases assist with bringing in out of province "mentors", when qualified local talent is not available. The credit is capped at $3 million per year per corporation (together with any associated corpor- ations) and larger projects attract audit requirements.
