The Ontario Computer Animation and Special Effects (OCASE) tax credit is a refundable tax credit. It is available to corporations that perform eligible computer animation and special effects activities.
The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.
The Benefit
The credit is 20% of Ontario labour expenses for eligible activities.
Eligible expenses incurred after March 26, 2009 include 100% of remuneration paid to non-employees.
Eligibility
To qualify, an eligible corporation:
- is a Canadian corporation (that is Canadian or foreign-owned)
- is not exempt from tax
- performs eligible activities at its permanent establishment in Ontario
- is not controlled by another corporation exempt from tax and
- is not a prescribed labour-sponsored venture capital corporation.
How to Apply
Corporations must obtain a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC), and attach it to their T2 Corporation Income Tax Return (T2 return).
Corporations must claim the tax credit on Schedule T2SCH554, and file it with their T2 return.
