What Counts as Canadian Content? Film and Media Funding Eligibility Explained

By GrantHub Research Team · · Lire en français

What Counts as Canadian Content? Film and Media Funding Eligibility Explained

If you make film or television in Canada, “Canadian content” is more than a creative idea. It is a legal test. This test decides if your project can get important funding, like the Canadian Film or Video Production Tax Credit (CPTC). Many projects miss out because people misunderstand what counts as Canadian content or think citizenship alone is enough.

This guide explains what Canadian content means, how the point system works, and how it affects your funding options.


How Canadian Content Is Defined for Film and Media Funding

Most federal funding programs use rules from the Canadian Audio-Visual Certification Office (CAVCO). These rules are used for the Canadian Film or Video Production Tax Credit. The rules focus on who controls the project and who fills the main creative jobs.

The Three Core Requirements

To qualify as Canadian content for the CPTC, your project must meet all three rules below:

1. Canadian-Controlled Production Company

Your company must be a Canadian-controlled taxable corporation. This means:

  • The company is set up in Canada
  • Canadians (citizens or permanent residents) control it
  • The company owns and controls the copyright in the project

If a foreign company controls the creative side or the money, your project will not qualify, even if most work happens in Canada.

2. Minimum Canadian Content Points

CAVCO uses a 10-point system based on key creative roles. To qualify:

  • Your project needs at least 6 out of 10 points
  • The director or screenwriter must be Canadian

Points are given as follows:

  • Director – 2 points
  • Screenwriter – 2 points
  • Lead performer – 1 point
  • Second lead performer – 1 point
  • Production designer – 1 point
  • Director of photography – 1 point
  • Music composer – 1 point
  • Picture editor – 1 point

Only Canadian citizens or permanent residents earn points.

3. Canadian Labour and Production Spending

Your project must meet Canadian spending rules:

  • At least 75% of total production services costs must go to Canadians
  • At least 75% of post-production costs must go to Canadians

These numbers are checked when you apply for certification and may be checked again later.


How the Canadian Film or Video Production Tax Credit Works

The Canadian Film or Video Production Tax Credit is a refundable federal tax credit. It supports certified Canadian projects.

Key Program Facts

  • Funding: 25% of eligible Canadian labour costs
  • Managed by: Canadian Heritage (CAVCO) and the CRA (tax credit)
  • Eligible types:
    • Feature films
    • TV series
    • Documentaries
    • Children’s shows
    • Animation (with special rules)

You can get this credit even if your company owes no tax.

If you want to see which programs fit your project, GrantHub’s eligibility matcher can help you filter by province, format, and company type.


What Does Not Count as Canadian Content

Some producers think these things help, but they do not count for Canadian content:

  • Filming in Canada with a foreign cast and crew
  • Using Canadian locations or Canadian stories
  • Hiring Canadian service companies for a foreign project
  • Treaty co-productions that do not meet CPTC rules

These projects might qualify for the Production Services Tax Credit, but not for Canadian content funding.


Common Mistakes to Avoid

1. Hiring a Non-Canadian Director

If neither the director nor the screenwriter is Canadian, your project will not qualify, even if you reach six points with other roles.

2. Assuming Co-Productions Always Qualify

Only official treaty co-productions count as Canadian content. Informal partnerships do not.

3. Losing Canadian Control During Production

If control of your company changes during the project, you could lose your certification and funding.

4. Misclassifying Labour Costs

Only eligible Canadian labour counts for the 25% credit. If you classify payroll wrong, you could lose part or all of your claim.


Frequently Asked Questions

Q: Is the Canadian Film or Video Production Tax Credit refundable?
Yes. You can get the credit even if you do not owe corporate income tax.

Q: Are documentaries considered Canadian content?
Yes. Documentaries can qualify if they meet the Canadian content and control rules.

Q: Can I combine the federal credit with provincial film tax credits?
Yes. You can usually stack the CPTC with provincial credits, as long as you follow each program’s rules.

Q: Do permanent residents count as Canadian for points?
Yes. Both Canadian citizens and permanent residents can earn Canadian content points.

Q: Does animation use the same point system?
Animation has a slightly different point system, but Canadian control and labour rules still apply.


See Also

  • Telefilm Theatrical Exhibition Program: Eligible Promotional Expenses
  • How to stack grants and loans without violating funding rules
  • NWT Film Rebate Program: Is Filming in the Northwest Territories Worth It?

Next Steps

Knowing what counts as Canadian content early can save you time and protect your funding options. GrantHub tracks federal and provincial film funding programs, including tax credits that require certification. Check which ones fit your project before hiring key creative talent.

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