Income Tax Regulations (C.R.C., c. 945)

PART XCIIIFilm or Video Production Services Tax Credit

Accredited Production

• 9300 (1) Subject to subsection (2), for the purpose of section 125.5 of the Act, accredited production means

  • (a) a film or video production in respect of which the aggregate expenditures, included in the cost of the production, in the period that ends 24 months after the time that the principal filming or taping of the production began, exceeds $1,000,000; and

  • (b) a film or video production that is part of a series of television productions that has two or more episodes, or is a pilot programme for such a series of episodes, in respect of which the aggregate expenditures included in the cost of each episode in the period that ends 24 months after the time that the principal filming or taping of the production began exceeds

    • (i) in the case of an episode whose running time is less than 30 minutes, $100,000, and

    • (ii) in any other case, $200,000.

• (1.1) The references to “24 months” in paragraphs 9300(1)(a) and (b) are to be read as references to “36 months” in respect of film or video productions for which the Canadian labour expenditure of the corporation in respect of the production for the taxation years ending in 2020 or 2021 was greater than nil.

• (2) An accredited production does not include a production that is any of the following:

  • (a) news, current events or public affairs programming, or a programme that includes weather or market reports;

  • (b) a talk show;

  • (c) a production in respect of a game, questionnaire or contest;

  • (d) a sports event or activity;

  • (e) a gala presentation or awards show;

  • (f) a production that solicits funds;

  • (g) reality television;

  • (h) pornography;

  • (i) advertising; and

  • (j) a production produced primarily for industrial, corporate or institutional purposes.

PART XCIV[Repealed, 2016, c. 7, s. 59]

9400 [Repealed, 2016, c. 7, s. 59]

9401 [Repealed, 2016, c. 7, s. 59]

PART XCVEmployee Life and Health Trusts

Marginal note:Prescribed rights

9500 For the purpose of subparagraph 144.1(2)(g)(iii) of the Act, prescribed payments are payments to General Motors of Canada Limited or Chrysler Canada Inc. by the employee life and health trust established for the benefit of retired automobile industry workers by the Canadian Auto Workers’ Union that

• (a) are reasonable in the circumstances;

• (b) are made as consideration for administrative services provided to or on behalf of the trust or its beneficiaries, or as reimbursement for employee benefit payments made on behalf of, or in contemplation of the establishment of, the trust; and

• (c) the recipient acknowledges in writing shall be included in computing the recipient’s income in the year that they are receivable, to the extent that the recipient deducts in the year, or deducted in a prior year, in computing its income amounts in respect of the services or benefit payments described in paragraph (b).

PART XCVISchool Supplies Tax Credit

Marginal note:Prescribed durable goods

9600 For the purpose of the definition teaching supplies in subsection 122.9(1) of the Act, the following are prescribed durable goods:

• (a) books;

• (b) games and puzzles;

• (c) containers (such as plastic boxes or banker boxes);

• (d) educational support software;

• (e) calculators (including graphing calculators);

• (f) external data storage devices;

• (g) web cams, microphones and headphones;

• (h) multimedia projectors;

• (i) wireless pointer devices;

• (j) electronic educational toys;

• (k) digital timers;

• (l) speakers;

• (m) video streaming devices;

• (n) printers; and

• (o) laptop, desktop and tablet computers, provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom.

PART XCVIICOVID-19 — Air Quality Improvement Tax Credit

Marginal note:Tax credit — air quality improvement

• 9700 (1) The following definitions apply in this section.

  HEPA filter

  HEPA filter means a high-efficiency particulate air filter that has been tested to ensure efficiency equal to or exceeding 99.97% for removal of airborne particles having a mean aerodynamic diameter of 0.3 µm (micrometres) from the air. (filtre HEPA)

  HVAC system

  HVAC system means a mechanical heating, ventilating and air conditioning system that is installed in a building, and includes all of its equipment and components. (système CVCA)

  MERV

  MERV means the minimum efficiency reporting value parameters specified in ANSI/ASHRAE Standard 52.2-2017, Method of Testing General Ventilation Air-Cleaning Devices for Removal Efficiency by Particle Size, Section 12, Minimum Efficiency Reporting Value (MERV) for Air Cleaners, Table 12-1, Minimum Efficiency Reporting Value (MERV) Parameters. (MERV)

• (2) Subject to subsection (3), for the purposes of the definition qualifying expenditure in subsection 127.43(1) of the Act, the following outlays and expenses are prescribed to the extent that they are reasonable and intended primarily to increase outdoor air intake or to improve air cleaning:

  • (a) outlays and expenses that are directly attributable to the purchase, installation, conversion or upgrade of a new or retrofitted HVAC system placed in service at a qualifying location that meets either of the following conditions:

    • (i) the system is designed to filter air at a rate in excess of MERV 8 or an equivalent level of filtration, or

    • (ii) the system is designed to filter air at a rate equal to MERV 8 or an equivalent level of filtration and the following conditions are met:

      • (A) the system is designed to achieve an outdoor air supply rate in excess of what is required for the space by applicable building codes, and

      • (B) in the case of an upgrade or conversion of an existing system, prior to the upgrade or conversion, the system was designed to filter air at a rate equal to MERV 8; and

  • (b) outlays and expenses that are directly attributable to the purchase of a device that is placed in service at a qualifying location and designed to filter air using a HEPA filter.

• (3) The outlays and expenses in subsection (2) do not include an outlay or expense of an eligible entity

  • (a) made or incurred under the terms of an agreement entered into before the start of the qualifying period;

  • (b) that is the cost of recurring or routine repair or maintenance;

  • (c) that can reasonably be expected to be paid or returned, directly or indirectly, in any manner whatever, to

    • (i) the eligible entity,

    • (ii) a person or partnership not dealing at arm’s length with the eligible entity, or

    • (iii) another person or partnership at the direction of the eligible entity;

  • (d) that is paid to a party with which the eligible entity does not deal at arm’s length;

  • (e) that is salary or wages paid to an employee of the eligible entity; or

  • (f) for financing costs.