Increased Limit of the Refundable Tax Credit for the Production of Performances as it Applies to Musical Comedies
In the case of musical comedies, the refundable tax credit for the production of performances is equal to 35% of the amount of qualified labour expenditures, which cannot represent more than 50% of the production costs of the performance. The tax credit cannot exceed $750,000.
Tax legislation will be amended to stipulate that the refundable tax credit is limited to $1.25 million for the production of qualified performances that are musical comedies.
The sectoral parameters of the tax credit will also be changed to stipulate that the favourable advance ruling and the certificate issued by the Société de développement des entreprises culturelles (SODEC), certifying that the performance is recognized as a qualified performance, must mention that the performance is a musical comedy, where such is the case.
The increased limit will apply in relation to a performance whose three eligibility periods had not all ended by March 20, 2012.
For further information, see page 71 in Additional Information on the Fiscal Measures of the Budget, published by the Ministère des Finances.