Tax Credit
Saskatchewan's Tax Credit Program: Unique, User Friendly and Competitive
The Saskatchewan Film Employment Tax Credit Program (SFETC) has proven to be an incredible resource to Saskatchewan co-venture and service productions.
Recent enhancements made to the SFETC make it one of the most comprehensive and competitive tax incentive programs available in North America. Now offering up to 55% in tax credits on each individual project and with no content or copyright restrictions, the program continues to be user-friendly, production-oriented and designed to encourage film and television production in Saskatchewan. A unique advantage of the SFETC is the ability for producers to include all above-the-line salaries and wages in the calculation of the tax credit.
45% Saskatchewan’s New Base Tax Credit
Saskatchewan’s new tax credit will rebate 45% of the total wages of all eligible above-the-line and below-the-line Saskatchewan and deemed labour. Deemed labour can include non-Saskatchewan labour or those positions that provide training to a Saskatchewan resident. Eligible salaries will be limited to no more than 50% of a production’s total eligible budget, less ineligible financing. Up to 25% of a production’s total labour costs can be eligible for deeming.
5% Saskatchewan Rural Bonus
The SFETC provides for an additional 5% bonus of total production expenditures in the province for productions that choose to film in smaller centres and rural areas (25 miles or more from the province’s major cities, Regina and Saskatoon). The rural bonus provides visiting and local producers with an opportunity to further reduce overall production expenditures and to take advantage of Saskatchewan's urban centres, historic towns and villages, rivers, lakes, valleys, badlands and breathtaking scenery.
5% Saskatchewan New Key Position Bonus
This new component of the SFETC is an incentive designed to encourage visiting and local producers to hire specific Saskatchewan crew members and technicians in both below-the-line and above-the-line positions. Designed for productions with budgets of $3 million CDN or more, this additional 5% is eligible on projects that attain 6 out of 10 points on positions specified by the program, including: costume designer, director, director of photography, gaffer, key grip, locations manager, production designer, production coordinator, property master and writer.
55% Total tax credit incentives available in Saskatchewan per project
So... for example:
| Total Budget |
$10,000,000 |
| |
X 50% |
| Eligible Labour Expenditures |
$5,000,000 |
| |
|
| Total Saskatchewan Labour |
$3,750,000 |
| Total Deemed Labour |
$1,250,000 |
| Total Eligible Labour |
$5,000,000 |
| |
X 45% |
| Total Labour Tax Credit |
$2,250,000 |
| |
|
| Add the Rural Bonus: |
|
| Total Saskatchewan Expenditures |
$5,000,000 |
| |
X 5% |
| Total Rural Bonus |
$375,000 |
| |
|
| Add The Key Bonus: |
|
| Total Eligible Labour |
$5,000,000 |
| |
X 5% |
| Total Key Bonus |
$250,000 |
| |
|
| |
| Total Labour Tax Credit |
$2,250,000 |
Total Rural Bonus
|
$375,000 |
| Total Key Bonus |
$250,000 |
| Total Saskatchewan Tax Credit |
$2,875,000 |
Saskatchewan Film Employment Tax Credit Quick Facts:
- How does an out-of province company co-venture with a Saskatchewan production company?
A visiting producer would form a single purpose company headquartered in Saskatchewan for the sole purpose of producing the project. This single purpose entity would not have to share in copyright ownership, but would have to meet all requirements as set out for Production Company eligibility above, and the Saskatchewan partner would have at least 50% control of the entity.
Or, a visiting producer would set up a traditional co-production between an eligible Saskatchewan based company and an out of province company or companies. In this case, the Saskatchewan based company must be the entity applying for and receiving the credit.
- Like other Canadian provinces, the process of application for the credit includes an 'Initial' application for registration and a 'Final' application for a tax credit certificate. The certificate can then be filed with the corporation's tax return.
- There are no copyright requirements.
- There are no Canadian or Saskatchewan content requirements.
- There are no corporate or project caps
- As with other tax credits, the amounts due to the production company may be offset if it owes taxes, interest, penalty or payments in respect of employer contributions to Employment Insurance or the Canada Pension Plan.
- No administration fee is charged to administer the tax credit. However, there is a provision for administration fees for deemed labour, which is handled through the Crew Call office.
- A unique advantage of this program is the ability of producers to include all above-the-line salaries and wages in the calculation of the tax credit.
For any questions on the SFETC, please contact:
Joel Barton
Finance Officer/Studio Operations
joel@saskfilm.com
306-798-1291
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