Credit Rate
The refundable tax credit may amount to 37.5% of eligible labour expenditures. Your corporation may be eligible if it has an establishment in Québec and produces eligible multimedia titles. Titles must be published on an electronic medium, controlled by software allowing interactivity, and contain a substantial volume of three of the following four types of information: text, sound, still images and animated images. Video images are considered as only one media component. Related titles such as digital animation films associated with an eligible multimedia title produced by your corporation are also eligible. However, the labour expenditure related to the main multimedia title with which the related title is associated must be at least $1 million.
Eligible Production Work
Eligible production work in relation to a title refers to work carried out for the purpose of completing the production stages of the title, commencing with the design stage and indefinitely thereafter.
Eligible Labour Expenditures
Expenditures must be incurred by the producer for eligible production work. Eligible labour expenditures include all of the following amounts: Salaries and wages paid to eligible employees; The portion of amounts paid to a subcontractor not dealing at arm’s length with the multimedia producer for the execution of eligible production work by employees of the subcontractor in an establishment in Québec; 50% of amounts paid to a subcontractor dealing at arm’s length with the multimedia producer for the execution of eligible production work in Québec.
Source: IQ Web site