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Ontario Film and Television Tax Credit

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The Ontario Film and Television Tax Credit (OFTTC) is a refundable tax credit based on eligible Ontario labour expenditures incurred by a qualifying production company with respect to an eligible Ontario production. The OFTTC was announced in the 1996 budget and came into effect in the fall of 1997 after the bill and regulations were adopted. Enhancements were later introduced.

The OFTTC is generally “harmonized” with the Canadian Film or Video Production Tax Credit.

Amount of the tax creditThe OFTTC is generally calculated as 35% of the eligible Ontario labour expenditures incurred by a qualifying production company with respect to an eligible Ontario production, net of assistance with such expenditures. An enhanced credit rate of 40% on the first $240,000 of qualifying labour expenditure is available for first-time producers. Productions that are shot in Ontario entirely outside the Greater Toronto Area (GTA) or that have at least five location days in Ontario (or in the case of a television series, the number of location days is at least equal to the number of episodes), and at least 85% of the location days in Ontario are outside the GTA, receive a 10% bonus on all Ontario labour expenditures incurred for the production. Wholly animated productions which perform at least 85% of key animation in Ontario outside the GTA qualify for the regional bonus.

Refundable Computer Animation and Special Effects Tax Credit

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IntroductionThe Ontario Computer Animation and Special Effects Tax Credit (OCASE) is a refundable tax credit: the amount of the credit, net of any provincial income tax payable, is refunded to the qualifying corporation. The OCASE tax credit is based on eligible Ontario labour expenditures incurred by a qualifying corporation during a taxation year with respect to eligible computer animation and special effects activities.

The OCASE Tax Credit may be claimed on eligible expenditures in addition to the Ontario Film and Television Tax Credit or the Ontario Production Services Tax Credit.

Amount of the tax creditThe OCASE Tax Credit is calculated as 20% of the eligible Ontario labour expenditures incurred by a qualifying corporation with respect to eligible computer animation and special effects activities. There is no cap on eligible Ontario labour expenditures.

Do you qualify?

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