Is there a limit on the amount of location fees that can be claimed as eligible expenditures?
The definition of eligible tangible property expenditures has been amended to remove the “ordinarily engaged in” requirement for expenditures for leasing real property in Ontario for on-location filming. This is effective for expenditures incurred after November 14, 2022. To be eligible, expenditures for leasing real property for on-location filming must be reasonable in the circumstances and paid to a party that deals at arm’s length from the qualifying applicant company.
The maximum eligible expenditures for leasing real property for on-location filming that can be claimed for a production is five per cent of the production’s qualifying production expenditures, net of these location costs.