Tax Credits – Book Publishing Tax Credit

As announced on September 22, 2009, the federal Book Publishing Industry Development Program (BPIDP) has been streamlined and renamed the Canada Book Fund (CBF). The CBF program’s two main components are: Support for Publishers and Support for Organizations. The Support for Publishers contributions are composed of two possible amounts: a base amount and a supplementary amount based on export sales.

As a result of the federal changes, the Book Publishing Tax Credit, which was computed based on the Aid to Publishers component of the BPIDP, will be computed by reference to the base amount of Publishing support.

The Book Publishing Tax Credit program is for book-publishing corporations that carry out business primarily in British Columbia.

You can claim this credit if you are a recipient of a Book Publishing Industry Development Program (BPIDP) contribution after March 31, 2002, and before April 1, 2012.

The recipient must be a Canadian-controlled corporation carrying on business primarily through a permanent establishment in British Columbia with book publishing as its principal business. For more information, please see Bulletin CIT 008, Book Publishing Tax Credit.

You are eligible for a credit of 90% of the BPIDP contributions received in the tax year.

The credit is fully refundable, but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.

Claiming the credit

The credit is claimed when filing your T2 Corporation Income Tax Return. Enter the amount of the BPIDP contribution received in the tax year on line 886, and the amount of the credit you are claiming on line 665 of Schedule 5, Tax Calculation Supplementary - Corporations.

You must claim the credit no later than 18 months after the end of the tax year.

Legislation

Please see Part 8 of the B.C. Income Tax Act and the Book Publishing Tax Credit Regulation.