The Ontario Computer Animation and Special Effects (OCASE) tax credit is a 20% refundable tax credit for eligible Ontario labour expenditures related to digital animation and special effects in qualifying film and television productions. It can be claimed in addition to the Ontario Film and Television Tax Credit or the Ontario Production Services Tax Credit (see our Entertainment and Media Tax Clips: Ontario proposes to make enhanced film and television credits permanent (March 5, 2009) and Entertainment and Media Tax Clip: Ontario enhances Production Services Tax Credit (July 3, 2009) highlighting recent enhancements to these credits).
The 2009 Ontario budget proposes the following enhancements to the OCASE for qualifying expenditures incurred after March 26, 2009:
Increase and expand eligible labour expenditures
The budget streamlines administration by relaxing the requirement that an eligible animation or visual effect must be created primarily with digital technologies.
These measures demonstrate Ontario's commitment to the Entertainment and Creative Cluster. They will be welcome in the entertainment and media industry. They make Ontario an even more attractive jurisdiction for companies to perform computer animation and special effects.
For more film, video and digital media incentives, see PricewaterhouseCooper's The Big Table of Film and Video Incentives and Big Table of Digital Media and Animation Incentives, which will be updated for recent enhancements shortly.