Book publishing tax credit
Last updated on August 30, 2024The book publishing tax credit program applies to book publishing corporations that carry out business primarily in B.C.
You can claim this refundable tax credit if:
- You’re a Canadian-controlled corporation carrying on business primarily through a permanent establishment in B.C. with book publishing as your principal business, and
- You receive a base amount of Support for Publishers contributions under the federal Canada Book Fund before April 1, 2026.
Eligible book publishers may receive a credit of up to 90% of the base amount of Support for Publishers contributions received in the tax year.
Other supplementary amounts paid under the Support for Publishers program are not included in the base amount for the book publishing tax credit, even if those supplements are calculated on your base amount.
Eligibility definitions
You’re a book publishing corporation if you’re a corporation whose principal business is book publishing and you:
- Offer books for retail sale
- Enter into contractual agreements with authors or copyright holders, and
- Assume the financial risks associated with the production and marketing of the books
Carrying on business primarily through a permanent establishment in B.C. means:
- You have a permanent establishment only in B.C., or
- More than 50% of your salaries and wages are paid to employees of British Columbian permanent establishments for the taxation year
You’re a Canadian-controlled corporation if you’re described in sections 26 to 28 of the Investment Canada Act.
You’re not eligible for the tax credit if you’re:
- Exempt from tax under section 27 of the Income Tax Act, or
- Controlled directly, or indirectly, by persons who are exempt under section 27 of the Income Tax Act or Part I of the Income Tax Act (Canada)
Claiming the credit
You can claim the credit when you file your T2 Corporation Income Tax Return.
- On line 886, enter the amount of the base amount of Support for Publishers contributions you received in the tax year
- On line 665 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you’re claiming
You must claim the credit no later than 18 months after the end of the tax year in which you received the Support for Publishers contributions.
The credit is fully refundable but must first be applied against the total income tax payable. There are no carry-back or carry-forward provisions.
Legislation
The following legislation applies to the book publishing tax credit program: