Newfoundland & Labrador Film and Video Tax Credit: How to Apply

Newfoundland & Labrador Film and Video Tax Credit: How to Apply

Film and TV production can be costly. Labour, equipment, post-production, and local services all add up quickly. The Newfoundland & Labrador Film and Video Tax Credit provides a refundable provincial tax credit worth up to 40%, making the province an attractive option for film and video projects in Atlantic Canada.

If you’re considering a film, TV, or video production in Newfoundland and Labrador, here’s what you need to know about the credit and how to apply.

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How the Newfoundland & Labrador Film and Video Tax Credit Works

The Film and Video Tax Credit is a refundable corporate income tax credit from the Government of Newfoundland and Labrador. Refundable means your company can receive the credit even if it owes no provincial tax for the year.

Credit Amounts

Eligible productions can select one of two calculation methods:

• 40% of eligible Newfoundland and Labrador labour costs, or
• 25% of total eligible production costs

You can only use one method per production, so most companies calculate both options and choose whichever is higher.

What Types of Productions Qualify?

The credit covers a wide variety of screen-based projects, such as:

• Feature films
• Television series and pilots
• Documentaries
• Short films
• Eligible video productions intended for public viewing

Advertising and internal corporate videos are generally not eligible.

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Eligibility Requirements You Must Meet

To qualify for the Newfoundland & Labrador Film and Video Tax Credit, your project must meet several key requirements.

Company Requirements

• The applicant must be a taxable Canadian corporation
• The corporation must have a permanent establishment in Newfoundland and Labrador
• The company must file a Newfoundland and Labrador corporate income tax return

Production Requirements

• The production must be primarily completed in Newfoundland and Labrador
• Eligible expenses must be directly related to the production
• Labour costs must be paid to Newfoundland and Labrador residents to qualify for the 40% labour-based credit

Eligible Expenses

Depending on the calculation method chosen, eligible costs may include:

• Salaries and wages paid to local cast and crew
• Production and post-production services within the province
• Equipment rentals used in Newfoundland and Labrador
• Other directly attributable production costs

Tools like GrantHub’s eligibility matcher can help you check if your company structure and production type fit provincial tax credit rules before you apply.

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How to Apply for the Film and Video Tax Credit

This tax credit differs from a traditional grant—you apply after your production expenses are incurred.

Step-by-Step Application Process

1. Complete your production
   • Keep detailed records of all eligible labour and production expenses.
2. Prepare your corporate tax return
   • File your Newfoundland and Labrador corporate income tax return for the relevant year.
3. Submit the Film and Video Tax Credit claim
   • Attach the required tax credit schedules and supporting documents.
4. Government review
   • The Department of Finance examines your claim.
5. Receive your refund
   • If approved, the credit is paid as a cash refund, even if no tax is owed.

There is no set annual intake deadline, but claims must be submitted with your corporate tax return for the applicable tax year.

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Can You Combine This Credit with Other Film Funding?

Yes. The Newfoundland & Labrador Film and Video Tax Credit can be used with federal film tax credits, including:

• Canadian Film or Video Production Tax Credit (CPTC)
• Film or Video Production Services Tax Credit (PSTC)

Combining provincial and federal credits can help lower your overall production costs, but you cannot claim the same expense twice.

For more on combining funding sources, see:
How to stack grants and loans without violating funding rules

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Frequently Asked Questions

Q: Is the Newfoundland & Labrador Film and Video Tax Credit refundable?
Yes. The credit is fully refundable, so you receive it even if your company owes no provincial corporate tax.

Q: How much is the Film and Video Tax Credit worth?
You can claim either 40% of eligible local labour costs or 25% of total eligible production costs, depending on which method you choose.

Q: Do I need to hire Newfoundland and Labrador residents?
You must hire local residents to qualify for the 40% labour-based credit. Non-resident labour may still count under the 25% total cost option.

Q: When do I claim the tax credit?
You claim the credit when you file your Newfoundland and Labrador corporate income tax return for the year the expenses were incurred.

Q: Can I combine this credit with federal film tax credits?
Yes. The credit can be combined with federal programs like the CPTC or PSTC, as long as expenses are not double-counted.

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Common Mistakes to Avoid

1. Choosing the wrong credit calculation
   Some productions automatically pick the 40% labour option without checking if 25% of total costs would yield a higher credit.

2. Poor expense documentation
   Missing payroll records or invoices can delay or reduce your refund.

3. Assuming non-resident labour qualifies
   Only Newfoundland and Labrador residents count toward the 40% labour-based credit.

4. Waiting too long to plan
   Retroactive claims are allowed, but lack of upfront planning often leads to ineligible expenses.

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Next Steps

If you’re planning a production in Newfoundland and Labrador, this tax credit can return a significant portion of your budget in cash. Choose the calculation method that works best for your project and keep thorough records of your expenses from the beginning.

GrantHub tracks hundreds of active grant and tax credit programs across Canada, including provincial and federal film funding. To find out which programs fit your production, province, and company, use GrantHub’s tools before filing your claim.

See also:

• How Transferable and Production Tax Credits Work in Canada
• BC Regional Production Services Tax Credit: Eligibility Explained
• NWT Film Rebate Program: Is Filming in the Northwest Territories Worth It?