The Canadian Journalism Labour Tax Credit (CJLC) is a refundable tax credit designed to support qualified Canadian journalism organizations (QCJOs) by offsetting labour costs for eligible newsroom employees. Recent legislative changes have enhanced this credit to provide greater financial assistance to the journalism sector.

Key Updates:

• Increased Tax Credit Rate: Effective January 1, 2023, the CJLC rate has been elevated from 25% to 35% of qualifying labour expenditures. This enhanced rate is set to remain in effect until December 31, 2026, after which it will revert to 25%. Government of Canada
• Higher Labour Expenditure Cap: The annual cap on qualifying labour expenditures per eligible newsroom employee has risen from $55,000 to $85,000, applicable from January 1, 2023. This adjustment allows organizations to claim a larger portion of their labour costs. Government of Canada

Eligibility Criteria:

To benefit from the CJLC, an organization must:

• Be designated as a QCJO.
• Not hold a broadcasting license as defined in subsection 2(1) of the Broadcasting Act.
• If a corporation with share capital, meet specific Canadian ownership conditions outlined in the Income Tax Act.

An eligible newsroom employee is one who:

• Is employed by the QCJO for at least 40 consecutive weeks, averaging a minimum of 26 hours per week.
• Devotes at least 75% of their time to producing original written news content, including activities like researching, writing, and editing.

Claiming the Credit:

Organizations can claim the CJLC by completing the appropriate forms:

• Corporations: File Schedule 58 (T2SCH58) with the T2 Corporation Income Tax Return.
• Partnerships: File Schedule 58 (T5013SCH58) and allocate the credit to eligible members.
• Trusts: Provide supporting documents and enter the credit amount on line 91 of the T3 Trust Income Tax and Information Return.

These enhancements aim to bolster the Canadian journalism industry by providing increased financial support, enabling organizations to invest more effectively in quality journalism.