What is the OCASE?
The OCASE is a refundable tax credit for eligible, Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry directly related to digital animation and digital visual effects. Corporations can receive up to 18% of eligible labour expenditures for productions. The OCASE tax credit is claimed in addition to the Ontario Film and Television Tax Credit (OFTTC) or the Ontario Production Services Tax Credit (OPSTC).
Who can apply for the OCASE?
To be qualified, a corporation must:
- Be Canadian or foreign-owned
- carry on a film or video production or production services business at a permanent establishment in Ontario
- file an Ontario corporate tax return
Animation or visual effects houses, post-production houses, and film and television production companies that perform eligible computer animation and special effects activities are included as qualifying corporations.
Activities that are eligible include:
- Audio effects
- In-camera effects
- Credit rolls
- Animation and visual effects that are mostly or entirely created by editing activities or for use in promotional materials for an eligible production
What computer animation and special effects activities are eligible for OCASE?
Note that activities considered scientific research and experimental development are not included.