Ontario Computer Animation and Special Effects Tax Credit (OCASE)

Overview of the Ontario Computer Animation and Special Effects Tax Credit (OCASE) program:

The Ontario computer animation and special effects tax credit is a refundable tax credit equal to 18% of the qualifying labour expenditures for eligible computer animation and special effects activities, incurred by a qualifying corporation in a tax year for an eligible production.

Benefits of the Ontario Computer Animation and Special Effects Tax Credit (OCASE) program:

• Qualifying labour expenditures equal the corporation's Ontario labour expenditures for the tax year less any assistance reasonably related to these expenditures, other than excluded government assistance.
• The Ontario labour expenditures are the sum of the salaries and wages and the remuneration incurred in a tax year that are directly attributable to computer animation and special effects activities performed in Ontario and paid to certain persons or entities, within 60 days of the end of the tax year.

Eligibility criteria of the Ontario Computer Animation and Special Effects Tax Credit (OCASE) program:

• You can get a certificate of eligibility from Ontario Creates. To be eligible for credit, a corporation must meet certain criteria, including all of the following:
• Be a Canadian corporation
• Perform eligible computer animation and special effects activities for the eligible production at a permanent establishment in Ontario for the tax year. Eligible labour expenditures may include remote work done by employees, if the work is done in Ontario and the employee is an Ontario resident who reports to and is under the direction of an eligible tax credit applicant with a permanent establishment in Ontario
• Not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) for the tax year
• Not be controlled directly or indirectly, at any time in the tax year, in any way, by one or more corporations, all or part of whose taxable income is exempt from tax under section 57 of the Corporations Tax Act (Ontario) or Part III of the Taxation Act, 2007 (Ontario)
• Not be a prescribed labour-sponsored venture capital corporation at any time in the tax year
• Receive the Ontario production services tax credit or the Ontario film and television tax credit