How much funding can be received?

Funds up to 18% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Ontario Computer Animation and Special Effects Tax Credit (OCASE)?

Ontario Computer Animation and Special Effects Tax Credit (OCASE) is funded by Government of Ontario, Ontario Creates

Ontario Computer Animation and Special Effects Tax Credit (OCASE)

Q: What are Ontario Computer Animation and Special Effects Tax Credit (OCASE)'s eligibility criterias?

Canadian corporation with a permanent establishment in Ontario Files an Ontario corporate tax return Performs eligible computer animation or special effects activities in Ontario

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ON, Canada

Tax credit for animation and special effects work in Ontario

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Tax Credits

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Arts, entertainment and recreation

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Government of Ontario
Ontario Creates

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Refundable tax credit of 18% on local Ontario labour costs related to the creation of computer animation and special effects for use in film and television.

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The tax credit is calculated as 18% of eligible Ontario labour expenditures incurred for qualified computer animation and special effects activities.
There is no maximum (no cap) on eligible Ontario labour expenditures for the calculation of the credit.
The minimum eligible Ontario labour expenditure per production is $25,000 for animation or visual effects activities commenced on or after March 26, 2024.
An administration fee applies: 0.15% of eligible expenditures per application, with a minimum fee of $500 and a maximum fee of $10,000 per application.
An additional filing fee of $100 is charged for applications received more than 24 months after the company’s fiscal year-end, and for amended certificates.

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Production of computer animation for eligible film or television productions.
Creation of visual effects using digital technologies for eligible film or television productions.
Undertaking animation or visual effects projects intended for commercial exploitation via theatrical distribution, television broadcast, or online platforms.

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$ 18,000

Development of high-quality visual effects for an upcoming TV series

$ 16,200

Creation of motion capture animations for a video game

$ 13,500

Creation of 3D character models for an animated feature film

$ 18,000

Special effects creation for an indie film focusing on historical events

$ 13,500

Design and animation of ecological documentaries with advanced graphics

$ 9,900

Development of virtual reality environments for an educational platform

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The applicant must be a Canadian corporation, which can be Canadian- or foreign-owned.
The corporation must have a permanent establishment in Ontario and file an Ontario corporate tax return.
The corporation must perform eligible computer animation or special effects activities in Ontario, directly in support of an eligible film or television production, or under contract with the producer of an eligible production.
The production must be created for commercial exploitation and not fall under excluded genres.
The corporation must incur eligible Ontario labour expenditures for the qualifying activities performed in Ontario.

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Animation companies
Visual effects (VFX) houses
Post-production houses
Film and television production companies
3D service providers working under contract to a production’s producer

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Companies producing content in excluded genres, such as news, current events, public affairs programming, weather or market reports, talk shows, game shows, sports events, galas or awards shows, fundraising productions, reality television, pornography, advertising, or productions primarily for industrial, corporate, or institutional purposes.
Companies producing instructional or educational content not directed at children under 12 (for productions commencing animation or visual effects activities on or after March 26, 2024).
Companies focused on user-generated content, vlogs, travelogues, music videos, eSports, gaming, gambling productions, pranks, speeches, sermons, presentations, discourse, conference or event coverage, or productions based primarily on stock footage or previously released content (for productions commencing on or after March 26, 2024).
Companies controlled, directly or indirectly, by corporations that are exempt from tax under Part II of the Corporations Tax Act (Ontario), or classified as labour-sponsored venture capital corporations as defined in the Income Tax Act (Canada).

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Salaries and wages paid to employees directly attributable to eligible computer animation and special effects activities carried out in Ontario.
Remuneration paid to freelancers (individuals, partnerships, or arm’s-length incorporated individuals such as loan-out corporations) for work on eligible computer animation and special effects activities.
Remuneration paid to eligible partnerships for personally undertaking eligible activities, or for employees of those partnerships for personally undertaking eligible activities.
Remuneration paid to loan-out corporations (taxable Canadian corporations wholly owned by the individual providing the services) for eligible activities personally undertaken in Ontario.

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Ontario

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- The OCASE Tax Credit is based on eligible Ontario labour expenditures incurred by a qualifying corporation during a taxation year with respect to eligible computer animation and special effects activities. - The tax credit amount is calculated as 18% of the eligible Ontario labour expenditures incurred by the qualifying corporation. - Eligible productions must be created for commercial exploitation and have received an OFTTC or OPSTC certificate to be eligible for the OCASE tax credit. - Eligible activities include designing, modelling, rendering, lighting, painting, animating, and compositing directly in support of eligible animation or visual effects. - Qualifying labour expenditures include salaries, wages, and payments to freelancers for eligible activities carried out in Ontario. - The OCASE Tax Credit is administered jointly by Ontario Creates and the Canada Revenue Agency. - Application for the Certificate of Eligibility is made to Ontario Creates, which is then filed with the Canada Revenue Agency for claiming the tax credit. - Residency status is important in determining eligible labour expenditures for the tax credit. - Assistance in the form of grants, subsidies, and forgivable loans may grind the tax credit amount. - Crowdfunding may be considered assistance depending on the model used. - If a product/production is found to be ineligible, the applicant may be required to withdraw it from review. - Applicants can appeal the amount of tax credit received through the CRA's objections and appeals process. - For more information or assistance, applicants can contact the tax credit department at Ontario Creates.

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Determine Eligibility and Prepare Documents

Verify that your corporation is a qualifying corporation as per OCASE guidelines.
Ensure all eligible computer animation and special effects activities are completed.
Gather necessary documentation including, but not limited to, incorporation documents, contracts, production schedules, and detailed descriptions of the animation or visual effects process.

Calculate Eligible Expenditures

Calculate 18% of the eligible Ontario labour expenditures incurred for the relevant taxation year.
Prepare a breakdown of eligible Ontario labour expenditures for each production.

Complete Application Form

Access the Ontario Creates Online Application Portal (OAP) to start your application.
Fill out the OCASE Tax Credit Application, ensuring all sections are complete and accurate.
Upload all required supporting documents through the OAP.

Pay Administration Fee

Calculate the administration fee based on 0.15% of eligible expenditures, with a minimum of $500 and a maximum of $10,000.
Submit the administration fee via Interac e-Transfer or another approved payment method.

Submit Application

Review your application for completeness and accuracy.
Submit your completed application before the end of the corporation’s taxation year.

Await and Respond to Communication

Check for any correspondence from Ontario Creates regarding your application status.
Provide additional information or documentation if requested.
Monitor CRA assessments and refund status.

Filing with CRA

Once you receive the Certificate of Eligibility, submit it with your corporate tax return to the CRA.
Use CRA’s online tools for secure submission and confirmation if available.

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The OCASE Tax Credit is refundable and is administered jointly by Ontario Creates and the Canada Revenue Agency (CRA).
An administration fee of 0.15% of eligible expenditures applies to each application, with a minimum of $500 and a maximum of $10,000 per application.
Additional fees are imposed for certificates of eligibility filed more than 24 months after year-end and for amended certificates ($100 per occurrence).
Assistance (such as grants, subsidies, and forgivable loans) may reduce the amount of the tax credit; crowdfunding treated as donations can also be considered assistance.

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Ontario Computer Animation and Special Effects Tax Credit (OCASE)

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taxcredits@ontariocreates.ca

416-642-6659

Apply to this program

Funding for global growth of Ontario digital media companies