Ontario Computer Animation & Special Effects Tax Credits
About Digital Animation and Special Effects Tax Credits
Sizable tax credits and grants are offered to companies that perform digital or computer animation and special effects in Canada. These programs support the growth and advancement of post-production sectors across numerous provinces. However, each provincial program differs in requirements and returns. So, keep reading to learn more about the refunds available through your local computer animation and special effects tax credit.
Table of Contents
Ontario Computer Animation & Special Effects Tax Credit (OCASE)
What is the OCASE?
The OCASE is a refundable tax credit for Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry directly related to digital animation and digital visual effects. It is claimed in addition to the Ontario Film and Television Tax Credit (OFTTC) or the Ontario Production Services Tax Credit (OPSTC).
Amount: 18% of qualified Ontario labor directly attributable to eligible animation or visual effects for an eligible production (no maximum).
Who can apply for the OCASE?
To be qualified, a corporation must:
- Be Canadian or foreign-owned
- Carry on a film or video production, animation, visual/special effects, production services business at a permanent establishment in Ontario
- File an Ontario corporate tax return
- Receive either the OFTTC or the OPSTC
- Be the producer or in contract with the producer
Animation or visual effects houses, post-production houses, and film and television production companies that perform eligible computer animation and special effects activities are included as qualifying corporations. Only costs incurred in Ontario are eligible.
Eligible Computer Animation and Special Effects Activities
Activities that are eligible include:
- Animating
- Designing
- Modelling
- Rendering
- Lighting
- Painting
- Visual effects
- Composing
- Audio effects
- In-camera effects
- Credit rolls
- Subtitles
Note that activities considered scientific research and experimental development are not included.
OCASE Deadline
Businesses file tax credit claims with their annual tax returns. There are no specific deadlines, but applications must be submitted before the end of the fiscal year. Regardless, applications accepted on a rolling intake.
Application fee: Administration fee is 0.15% of eligible expenditures. Minimum application fee is $500.
Contact: www.ontariocreates.ca (416-642-6659)
Alberta Post-Production, Visual Effects and Digital Animation Grant (PPG)
What is the PPG?
The Alberta PPG provides funding for companies that work on post-production, visual effects, and digital projects in Alberta. It aims to encourage growth in the post-production sector and Alberta talent. This grant provides a contribution that covers a percentage of labor expenses.
Amount: 18% of total eligible Alberta labor. Maximum annual funding of $200,000.
Who can apply for the PPG?
To be qualified, a corporation must:
- Be 1 of the following: incorporated in Alberta, an extra-provincial company, or a sole proprietorship.
- Perform eligible activities on a regular basis as the producer or under a third-party contract
Corporations that have received funding from the Screen-Based Production Grant or the Alberta Production Grant are ineligible for the PPG on the same projects.
Eligible Post-Production Activities
Activities that are eligible include:
- Digital animation
- Audio and video editing
- Subtitling/closed captioning
- Visual and sound effects
- Projects for distribution to a public audience
PPG Deadline
Companies must submit their projects to the AMF within 60 days of completion. Applications accepted on a rolling intake until March 1 every year.
Application fee: No fee
Contact: www.alberta.ca/index.aspx (780-422-8584)
British Columbia Digital Animation, Visual Effects and Post-Production Tax Credit (DAVE)
What is the DAVE?
The British Columbia DAVE is a refundable tax credit for BC-based production companies that perform digital animation and visual effects. This tax credit applies to BC labor expenses directly related to post-production activities. It is claimed under a Film Incentive BC (FIBC) or Production Services Tax Credit (PSTC) application.
Amount: 16% of qualified BC post-production labor. No maximum.
Who can apply for the DAVE?
To be qualified, a corporation must:
- Be eligible and claim for the FIBC or the PSTC
- Perform digital animation, visual effects, and post-production activities
DAVE Deadline
Businesses claim the tax credits with their annual tax returns. An eligibility certificate is required to apply, which must be obtained before filing the claim. It is recommended to submit a certificate application within 12 months of the fiscal year-end. Applications accepted on a rolling intake.
Application fee: Administration fee is 0.06% of final production costs. Eligibility certificate fee is $200.
Contact: www.creativebc.com (604-736-7997)
Nova Scotia Digital Animation Tax Credit
What is the DATC?
The Nova Scotia DATC is a refundable tax credit for companies that run digital animation productions. It covers related labor expenses incurred in NS during production.
Amount: 17.5% of eligible Nova Scotia animation labor.
-> Plus the lesser of:
- 50% of eligible Nova Scotia
- 25% of eligible Nova Scotia production expenditures.
Who can apply for the DATC?
To be qualified, a corporation must:
- Be incorporated and taxable in Canada
- Operate a permanent establishment in Nova Scotia
- Be Canadian-controlled and primarily (over 50%) engaged in film/video production
- Broadcast, distribute or showcase their production within 24 months of completion
Eligible Animation Activities
Activities that are eligible for the animation bonus include:
- Animating
- Designing
- Storyboarding
- Modeling
- Rendering
- Painting
- Rigging
- Lighting
- Compositing
DATC Deadline
Applications for: (i) initial assessment and product eligibility; and (ii) tax credit certificate must be made no later than 30 months after the end of the taxation year in which expenditures for an eligible production were made. Applications accepted on a rolling intake.
Application fee: No fee
Contact: www.novascotia.ca/finance (902-424-2808)
Québec Computer Animation and Special Effects Tax Credit
What is the QCASE?
The QCASE is a bonus refundable tax credit for labor expenses related to computer animation and special effects. It aims to support the technological development of the film industry in Québec. Production companies claim this bonus under the QPSTC/CISP or the FTPTC.
Amount: For the Quebec Film Production Services Tax Credit (QPSTC), 16% of qualified Québec labor. Or, for the Quebec Film and Television Production Tax Credit (FTPTC), 10% of qualified Québec labor. Maximum of 5% of production costs.
Who can apply for the QCASE?
To be qualified, a corporation must:
- Operate a permanent establishment in Québec, mainly carrying out activities in Québec
- Own copyrights to the production or has entered a contract with the copyright owner
- Be eligible and claim for the Québec FTPTC or QPSTC/CISP
Eligible Activities
Activities that are eligible for the bonus include:
- Computer-aided animation and special effects
- Filming in front of a chroma-key screen
Businesses file the claim with their annual tax returns. An eligibility certificate is also required to apply, which must be obtained before filing the claim. The claim must be submitted within 12 months after the taxation year-end in which expenses were incurred. Applications accepted on a rolling intake.
Application fee: $500 eligibility certificate flat fee. Subject to minimum administrative fees.
Contact: www.sodec.gouv.qc.ca (514-841-2200)
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