Cap per employee but not in aggregate
3.9. The Canadian journalism labour tax credit is a 25% refundable tax credit on the total qualifying labour expenditure incurred in respect of each eligible newsroom employee of a qualifying journalism organization. Qualifying labour expenditures are subject to an annual cap of $55,000 (prorated by the number of days in the organization’s taxation year), per eligible newsroom employee. Thus, the maximum credit available is $13,750 per eligible newsroom employee per year, for qualifying labour expenditure incurred for a period beginning on or after January 1, 2019. Refer to Examples 2 to 4.
3.10. While there is a limit on the maximum tax credit that a qualifying journalism organization can claim per eligible newsroom employee annually, there is no limit on the number of eligible newsroom employees employed by the organization in respect of whom this credit may be claimed. ...
Meaning of salary or wages
3.13. Generally, salary or wages of an eligible newsroom employee means the income from an office or employment and includes amounts paid to an employee such as vacation pay, statutory holiday pay, sick leave pay, and certain taxable benefits (e.g., a corporation’s contribution to its employees’ registered retirement savings plan, group insurance plan).
Treatment of tax credits as assistance
3.19. Generally, assistance includes amounts such as a refund, reimbursement, contribution, or allowance, whether as a grant, subsidy, forgivable loan, deduction from tax, or any other form of inducement. For example, provincial tax credits earned on the same qualifying labour expenditure would generally be considered assistance. Refer to Example 5.
3.20. While the Canadian journalism labour tax credit of a qualifying journalism organization is considered to be assistance that the organization received from a government immediately before the end of the year, it is not considered to be government assistance in the calculation of the qualifying labour expenditure for the purposes of determining the Canadian journalism labour tax credit itself. This means that the Canadian journalism labour tax credit will not be included in “B” in the formula for calculating the qualifying labour expenditure for a qualifying journalism organization. See Examples 2 to 5 where the Canadian journalism labour tax credit was not included in the calculation in the line “Less: Assistance received in respect of (A)”.