Does crowdfunding impact a production’s tax credit?
Crowdfunding will not impact a production’s eligibility for a tax credit. However, depending on the type of crowdfunding model utilized, it may be treated as assistance. In April 2017 CRA posted an application policy on various forms of financing and how to determine if they were assistance. The policy also dealt with three crowdfunding models: donation, lending and investment. The donation model is the one that producers might be most likely to use where there are small gifts/items provided by the producer to the contributor based on tiered levels of donation. In accordance with CRA’s application policy the donation model of crowdfunding would be treated as assistance.
CRA Application Policy