TAX CREDIT

The province of Newfoundland & Labrador offers a Film and Video
Industry Tax Credit which is administered by the NLFDC. It is a fully
refundable corporate income tax credit based on the amount of your
production budget spent on Newfoundland & Labrador labour. The tax
credit is calculated as 40% of the total eligible labour expenditures to a
maximum of 25% of the total eligible production budget. The tax credit
has an additional feature called the "Deeming Provision" wherein
amounts paid to non-residents in key positions may be included in the
tax credit calculation when a qualified resident is not available and the
non-resident serves as a mentor of a resident of the province.

EQUITY INVESTMENT PROGRAM

The EIP provides funding in the form of equity investment to eligible
producers for the financing of productions. The NLFDC will normally
provide a maximum contribution of 20% of the total production budget.
In order to access these funds, applicants must be incorporated in the
province and must be owned 51% or more by residents of
Newfoundland & Labrador.

Co-productions with other provinces are eligible to apply for equity
funding if there is a qualified Newfoundland & Labrador producer
sharing the financial and creative risks and rewards throughout the
development, production and distribution of the project. The
Newfoundland & Labrador co-producer must retain no less than a 33%
ownership position in the copyright of the production. For international
co-productions, they must retain no less that 20%.