The Ontario Computer Animation and Special Effects tax credit (OCASE) is a refundable tax credit for corporations that perform eligible activities related to computer animation and special effects. On behalf of Ontario through the federal income tax system, the Canada Revenue Agency (CRA) runs this program and monitors it. For eligible activities, the credit is 20% of Ontario labour expenses.
To qualify, the corporation must be Canadian, is not exempt from tax, performs activities at its permanent establishment in Ontario, is not controlled by another corporation that is exempt from tax and is not a prescribed labour-sponsored venture capital corporation.
This is a great program for corporations that perform computer animation and special effects as it allows them to receive money back for their eligible activities. To start, corporations must obtain a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC) and attach it to their T2 return. Then, contact Mentor Works Team for Government Funding and we would welcome the opportunity to help eligible corporations apply to this program.