Computer Animation and Special Effects Tax Credit

You can get a certificate of eligibility from Ontario Creates. To be eligible for credit, a corporation must meet certain criteria, including all of the following:

• be a Canadian corporation
• perform eligible computer animation and special effects activities for the eligible production at a permanent establishment in Ontario for the tax year. Eligible labour expenditures may include remote work done by employees, if the work is done in Ontario and the employee is an Ontario resident who reports to and is under the direction of an eligible tax credit applicant with a permanent establishment in Ontario
• not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) for the tax year
• not be controlled directly or indirectly, at any time in the tax year, in any way, by one or more corporations, all or part of whose taxable income is exempt from tax under section 57 of the Corporations Tax Act (Ontario) or Part III of the Taxation Act, 2007 (Ontario)
• not be a prescribed labour-sponsored venture capital corporation at any time in the tax year
• receive the Ontario production services tax credit or the Ontario film and television tax credit