Ontario Computer Animation and Special Effects Tax Credit (OCASE)

- 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.