Quebec Multimedia, Video Game & Film/TV Production Tax Credits (2025 Guide)

Quebec Multimedia Production Tax Credit

• Who qualifies? Quebec corporations producing eligible interactive digital media: video games, e-learning, educational software, mobile apps, and some web platforms. The production company must be Canadian-controlled and have a permanent establishment in Quebec. At least 75% of salary/wages must be paid to Quebec residents for eligible employees.
• Eligible projects: Multimedia titles with interactive content intended for the general public. Excludes primarily promotional, advertising, or administrative projects. The product must be original, interactive, and not be for internal use only.
• Credit rate: Up to 37.5% refundable credit on eligible Quebec labour costs (30% base rate, plus 7.5% bonus for French-language, educational, or high-value projects). Non-refundable portion available for certain projects.
• Eligible expenses: Gross salaries and wages for eligible Quebec employees working directly on the project, and certain Quebec subcontractor costs. Some overhead may be included if directly related to production.
• Application steps:
  1. Obtain an eligibility certificate from Investissement Québec before or during production. This certificate confirms your project and company qualify for the credit.
  2. Track and document all eligible employee time (timesheets), payroll, and project costs. Maintain detailed records for all eligible employees and subcontractors.
  3. Upon project completion or at year-end, calculate eligible expenses and the corresponding credit amount.
  4. File the required Quebec corporate tax schedules (CO-1029.8.36.M for multimedia) with your CO-17 tax return. Attach a copy of the eligibility certificate and full supporting documentation.
• Calculation example: If your project has $1 million in eligible Quebec salaries, you can claim a $300,000 (30%) base credit and possibly an additional $75,000 (7.5%) if it qualifies for the bonus. Total refundable: $375,000.
• Documentation & compliance: Pre-approval (eligibility certificate) is mandatory. The Quebec government may audit your claim, so keep all records for at least 7 years. Ineligible or unsubstantiated claims can be denied or reassessed with penalties.
• Stacking: Some projects may also qualify for the federal SR&ED tax credit on R&D portions, but the same expenditure cannot be claimed for both credits. Allocate and document carefully.
• Official Investissement Québec Multimedia Credit Info

Quebec Film & Television Production Credits

• Who qualifies? Quebec film, TV, and animation production companies (Canadian-controlled) producing eligible projects: feature films, television series, documentaries, animation, and certain co-productions. Both domestic and foreign service productions may qualify for different credits.
• Eligibility & pre-approval: You must obtain an eligibility certificate from SODEC (Société de développement des entreprises culturelles). Application must be made before or during production. The project must meet Quebec content and minimum spending requirements.
• Credit rates:
  • Domestic Film/TV Production Credit: Refundable credit of up to 20% of eligible Quebec labour costs (with bonuses for French-language, regional, and certain animation or documentary projects).
  • Production Services Credit: For foreign or service productions, a refundable credit of 16% of Quebec labour (CO-1029.8.36.76), plus possible additional bonuses for animation or VFX.
  • Animation & Digital Effects Bonus: Additional 16% for eligible animation and VFX work performed in Quebec.
• Eligible expenses: Quebec-resident salaries, payroll taxes, and certain contract expenditures directly related to the eligible production. The majority of work must be performed in Quebec.
• Application steps:
  1. Apply for a SODEC eligibility certificate before or during production. Submit the required project description, budget, and supporting documents.
  2. Track all payroll, contracts, and eligible expenses, ensuring proper documentation of Quebec residency and work performed.
  3. After production, file the required schedules (CO-1029.8.36.63 for domestic, CO-1029.8.36.76 for service/animation/VFX) with your Quebec corporate tax return (CO-17), along with the SODEC certificate.
• Calculation example: A TV production with $2 million in eligible Quebec salaries could claim $400,000 in the base credit. If a $250,000 portion is for animation, an additional $40,000 (16%) could be claimed.
• Documentation & compliance: Pre-approval and detailed records (payroll, contracts, invoices, Quebec residency proof) are required. SODEC and Revenu Québec may audit these credits.
• Stacking: Most Quebec film/TV credits can be combined with federal CPTC or PSTC, but do not double-claim the same expenditure on both credits.
• Official SODEC Quebec Film & TV Credits

Other Quebec Creative Sector Credits

• Sound Recording Production Credit: Refundable credit for Quebec-based sound recording work (albums, audio for multimedia, etc.). Eligibility certificate required from Investissement Québec.
• Book Publishing and Print Media Credits: Refundable credits for eligible expenditures in Quebec-based book publishing and print media innovation. Requires pre-approval and demonstration of Quebec content.
• Co-production Incentives: Additional support available for international or inter-provincial co-productions. Rules vary—check with SODEC and Investissement Québec.
• Stacking: Many Quebec creative sector credits can be combined with federal incentives, subject to program rules. Document all costs and avoid double-counting.

Stacking with Federal Incentives & Avoiding Double-Claiming

Federal film/TV credits: Most Quebec film, animation, and digital media credits can be stacked with federal credits such as the Canadian Film or Video Production Tax Credit (CPTC), Production Services Tax Credit (PSTC), or federal Interactive Digital Media Tax Credit (IDMTC). However, the same expense cannot be claimed twice. Allocate and document costs carefully, and ensure that documentation is clear if you are claiming both provincial and federal incentives on the same project.

• Maintain detailed cost breakdowns for each credit claimed.
• Consult a tax professional or your production accountant for complex projects, especially where international financing or multiple jurisdictions are involved.
• Official CRA guide: CRA Film/Media Credits

FAQs for Quebec Multimedia & Film/TV Claimants