How much funding can be received?

Funds up to 67% of admissible expenses.

What is the deadline to apply?

The program is accepting continuous intake

Who are the financial supporters of the Nova Scotia digital animation tax credit?

Nova Scotia digital animation tax credit is funded by Government of Nova Scotia, Finance and Treasury Board (NS)

What are Nova Scotia digital animation tax credit's eligibility criterias?

Must be a taxable Canadian corporation with a permanent establishment in Nova Scotia Must be Canadian-controlled and primarily engaged in film or video production Cannot be a labour-sponsored venture capital corporation or registered as an Equity Tax Credit company

Nova Scotia digital animation tax credit

Last Update: April 27, 2025

NS, Canada

Tax credit for digital animation in Nova Scotia

Nova Scotia digital animation tax credit at a glance

Eligible Funding

Up to 67% of project cost

Timeline

Closing date : May 21, 2024

Financing Type

Tax Credits

Eligible Industries

Information and cultural industries

Grant Providers

Government of Nova Scotia
Finance and Treasury Board (NS)

Status

Closed

Overview of the Nova Scotia digital animation tax credit program

Get a refundable tax credit equal to 50% of qualifying labour costs, as well as an additional credit of 17.5% for labour costs directly related to animation-specific activities.

Financing terms and conditions

The basic tax credit is calculated as the lesser of 50% of eligible Nova Scotia (NS) labour expenditure (minus any assistance received) or 25% of eligible NS labour expenditure plus eligible overhead expenditure (calculated as 65% of the eligible NS labour expenditure) plus 65% of eligible remuneration (minus twice the value of any assistance).
An animation bonus of 17.5% of eligible NS animation labour expenditure is available.
For each eligible employee, only salaries or wages up to $150,000 per individual are eligible for the credit.

Eligible projects & activities

Production of digital animation films with a minimum viewing time of 20 minutes.
Development of digital animation projects intended for broadcast, distribution, or public viewing within 24 months of completion.
Collaborative digital animation productions undertaken through production service or co-production agreements.

Examples of admissible projects:

$ 160,000

Develop a 30-minute animated educational series for children about environmental conservation

$ 123,750

Create an interactive animated app to teach basic coding to children

$ 82,500

Create a 3D animated short film for children focusing on environmental conservation

$ 110,000

Develop an educational animation series to teach elementary mathematics

$ 96,250

Produce a documentary-style animation on Canadian wildlife

Eligibility criteria of the Nova Scotia digital animation tax credit program

The applicant must be an incorporated Canadian-controlled corporation that is taxable in Canada.
The corporation must have a permanent establishment in Nova Scotia, such as a fixed place of business and personnel in the province.
The corporation must be primarily engaged (more than 50%) in film or video production.
The project must involve the development of an eligible digital animation production with a minimum viewing time of 20 minutes, to be broadcast, distributed, or made available for viewing within 24 months of completion.
The corporation must own the property rights of the production, or have authorization from the rights holder to claim the credit.

Who is eligible?

Canadian-controlled corporations primarily engaged in film or video production (more than 50%)
Corporations involved in the development of eligible digital animation productions

Who is not eligible

Labour-sponsored venture capital corporations.
Companies registered as an Equity Tax Credit company or a Community Economic Development Investment Fund.

Eligible expenses

Salaries, wages, vacation pay, statutory holiday pay, sick leave pay, and taxable benefits (such as RRSP contributions, group insurance, or meals) paid to Nova Scotia resident employees directly involved in the production.
Salaries or wages of third-party employees or owners providing direct services to the eligible production (excluding any profit margin and materials).
Amounts paid for technical animation activities, such as designing, modeling, rendering, lighting, painting, animating, rigging, storyboarding, and compositing, directly linked to the production.

Eligible geographic areas

Nova Scotia

Eligibility criteria of the Nova Scotia digital animation tax credit program

Yes, there are specific criteria for evaluating and selecting applications for the Nova Scotia Digital Animation Tax Credit. Applicants must ensure their corporation and production meet certain eligibility requirements.

Corporation must be an "eligible corporation" under the defined terms.
Corporation must demonstrate permanent establishment in Nova Scotia.
Corporation must be Canadian-controlled and primarily engaged in film or video production.
Corporation must not be a labor-sponsored venture capital corporation or registered under certain tax credit acts.
Corporation must own property rights of the production or have authorization if not the owner.
Production must have a minimum viewing time of 20 minutes.
Production must be broadcast, distributed, or available for viewing within 24 months of completion.
Production must have a production services agreement or written agreement with a distributor or broadcaster.
Certain types of productions are deemed ineligible (e.g., fundraising, news, current events, etc.).
NS Labour expenditures must be directly related to production and paid to NS residents.
Eligible remuneration includes salaries or wages of third-party employees or owners providing services to the production.

How to apply to the Nova Scotia digital animation tax credit program

Part A Application - Obtain an Eligibility Certificate

Submit a Part A application before the start of principal photography or key animation.
Email a completed Part A application form to the Taxation and Federal Fiscal Relations Division (TFFRD).
Include supporting documents such as synopsis & script, detailed locked budget, Certificate of Incorporation, Shareholder Registers, and any applicable agreements.

Receive Eligibility Certificate

Upon approval, receive an Eligibility Certificate indicating preliminary production eligibility and estimated DATC amount.

Part B Application - Obtain a Tax Credit Certificate

Submit a Part B application no later than 30 months after the end of the taxation year in which expenditures were made.
Email a completed Part B application form, including detailed expenditure reports like the Producers Affidavit, Review Engagement Report, or Audit Report, depending on production costs.
Provide supporting documentation such as Production Service agreements, Eligibility Certificate, and any other applicable agreements.

Claim the Tax Credit

Receive a Tax Credit Certificate confirming eligibility and credit value.
File a T2 and Schedule 5 with the Canada Revenue Agency (CRA), attaching the Tax Credit Certificate.
CRA will assess the T2 return, apply the credit to reduce tax payable, and refund any excess amount.

Additional information

Part A applications must be submitted before principal photography or key animation begins.
The Eligibility Certificate issued in Part A is only a preliminary indication and does not guarantee issuance of the tax credit.
The Minister may revoke the Tax Credit Certificate if false or misleading information is provided, or material facts are not disclosed.
Specific information about approved tax credits, with applicant consent, may be published for accountability purposes.

Apply to this program

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