Refundable Tax Credit for the Production of Sound Recordings

Crédit d’impôt remboursable pour la production d’enregistrements sonores

Funder

SODEC

Program Type

Production

Deadline

Rolling

Type of Aid

Refundable tax credit

Financial Aid

35% of eligible labour costs, representing no more than 50% of eligible production costs

Description

This program reduces the burden of production costs assumed by companies so as to encourage their capitalization and allow them to free up new financial resources to improve the stages of creation, preproduction, marketing and promotion.

Criteria

  • To be eligible for the tax credit, applicant companies must be recognized by SODEC or have reached an agreement regarding a given recording with another record company that is recognized by SODEC
  • To be recognized by SODEC, applicant companies must meet the following conditions:
  • The applicant company has, at any point over the tax year or the 365 days preceding the start of that year, at least five sound or digital audiovisual recordings (or equivalent downloads) distributed in retail establishments via one of its labels

  • The applicant company has brought to market, during the tax year or in the 730 days preceding the start of that year, at least three new sound or digital audiovisual recordings (or equivalent downloads) via one of its labels

  • The applicant company has, at any point during the year, an active distribution agreement for all of its labels, with one or more distributors

  • Sound recordings, digital audiovisual recordings, and music videos are eligible
  • To be eligible for the tax credit for a recording in a given tax year, the applicant company must submit an application to SODEC for a certificate before the end of the tax year and then submit SODEC’s certificate along with its tax return
  • Applications for a certificate for a given recording must be submitted to SODEC within 18 months following the tax year in which the master recording was completed
  • Eligible production work for sound recordings includes all stages from the conception of the work to the completion of the master recording, including sleeve design, mastering, and pressing costs within 18 months of release, up to 20,000 copies
  • Eligible production work for digital audiovisual recordings includes all stages from the conception of the work to the completion of the master recording, including authoring, sleeve design, mastering, and pressing costs within 18 months of the release of a recording, up to 20,000 copies
  • Eligible production work for a music video includes all stages from the conception of the video to the completion of the master recording

Eligible Expenses

  • Production costs, as long as they are considered reasonable and are included in the applicant company’s costs or capital costs of production for the recording
  • Production fees, administrative costs
  • Wages, salaries, or other forms of remuneration directly attributable to production

Supporting Documents

  • Completed SOD@ccès online application form
  • Declaration form for the applicant company
  • Confirmation of mandate for designated applicants
  • Agreements or contracts for the acquisition of rights necessary to the production and development of a sound recording, digital audiovisual recording, or music video
  • Director’s contract (music videos only)
  • Declaration of Quebec residency for key personnel
  • Declaration of Quebec residency for authors and composers or music video director
  • Financial structure of the project and copies of any financing agreements
  • A copy of the agreement signed with a recognized record company (if the applicant company is itself not recognized by SODEC)
  • Detailed cost report
  • Mechanical or audiovisual reproduction licenses
  • Sound recording budget, audiovisual budget or music video budget
  • Documentation for SODEC recognition:
  • A list of at least five sound or digital audiovisual recordings still distributed in retail outlets during the tax year or the 365 days preceding it

  • A list of at least three new sound or digital audiovisual recordings brought to market on one of its labels during the tax year or the 730 days preceding it

  • Distribution agreements in place for the company’s labels

  • Master file, including:
  • Profile and history of the company

  • A description of activities and accomplishments

  • Copies of the governing documents, certificate of constitution, articles of incorporation, declaration of registration, certificate of amendment and partnership or shareholders agreement (if applicable)

  • Organizational structures for the applicant company and, if applicable, any affiliated companies, including shareholders

  • Curriculum vitae of the applicant company’s executives

  • Financial statements

  • Information on shareholders/directors