Book publishing tax credit
The 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 (CBF) before April 1, 2021.
On March 10, 2021, the government proposed extending the B.C. book publishing tax credit by five years to include the base amount of Support for Publishers contributions under the federal Canada Book Fund (CBF) received before April 1, 2026.
For more information, see the bulletin Book Publishing Tax Credit (CIT 008) (PDF).
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.
Claiming the credit
You can claim the credit when you file your T2 Corporation Income Tax Return. Enter the amount of the CBF contribution you received in the tax year on line 886, and the amount of the credit you’re 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 in which you received the CBF contributions.
As part of our COVID-19 supports, the deadline to claim this tax credit for claims required to be made between March 13, 2020 and December 30, 2020 was extended to six months from the original due date or to December 31, 2020, whichever was earlier.
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.
The following legislation applies to the book publishing tax credit program: