Enhancements to the Film & Television Tax Credits (OCASE, OPSTC & OFTTC) OCASE:
We are pleased to inform you that the enhancements to the Ontario Computer Animation and Special Effects Tax Credit (OCASE) which were announced in the Provincial Budget of March 26, 2009, were passed into law by Regulatory amendment on March 16, 2010.
The enhancements, which apply to expenditures incurred after March 26, 2009, consist of the following:
• eligible labour expenditures (qualifying remuneration) increased to 100% from 50% of amounts paid to arm’s-length unincorporated individuals and partnerships providing freelance services;
• eligible labour expenditures (qualifying remuneration) expanded to include 100% of amounts paid to arm’s-length incorporated individuals (personal services corporations) providing freelance services;
• if the animation or visual effects are completed after March 26, 2009, the removal of the requirement that an eligible animation or visual effect be created “primarily” with digital technologies
The enhancements to the Ontario Production Services Tax Credit (OPSTC), which were announced by the Honourable Dwight Duncan, Minister of Finance on June 30, 2009, were passed into law on December 15, 2009. Effective for expenditures incurred after June 30, 2009, the OPSTC has been expanded to include all qualifying production expenditures, being qualifying labour as well as qualifying service contract and tangible property expenditures.
Please note as well that an amendment to the Ontario Film and Television Tax Credit (OFTTC) relating to the regional bonus was also passed into law on December 15, 2009. The definition of a “regional Ontario production” has been amended to allow wholly animated productions which perform no more than 15% of key animation outside of the Greater Toronto Area (“GTA”) to qualify for the regional bonus. Previously, all key animation for the production had to be performed outside of the GTA to qualify for the regional bonus.
New Administrative Policy :
As announced over the past few months in our OMDC newsletter, in our continued effort to decrease overall processing time on files, as of April 1, 2010 we will be implementing a new policy. The OMDC Tax Credits & Financing Programs department will only review complete applications received in our office as of April 1st and onwards. It is our hope that by limiting the amount of incomplete applications received and prioritizing the complete applications, we can deliver a higher level of customer service and ultimately have certificates issued sooner.
If you have any questions regarding any of these changes, please call the OMDC at (416)314- 6858.
Jennifer Blitz Director Tax Credits & Financing Programs