Ontario Computer Animation and Special Effects Tax Credit (OCASE)
Eligibility & Details
What this program funds and who can apply
Program Description
Refundable tax credit of 18% of eligible Ontario labour expenditures for qualifying corporations performing computer animation and visual effects work on film and television productions. Unlike the OIDMTC (which covers interactive digital media and video games), OCASE targets non-interactive audiovisual content — feature films, TV series, and streaming productions. As of March 26, 2024, OCASE no longer requires productions to also hold OFTTC or OPSTC certification, making it accessible to pure animation and VFX service companies that weren't eligible before.
Eligibility Requirements
- Must be a Canadian corporation (Canadian or foreign-owned) with a permanent establishment in Ontario
- Must perform eligible computer animation and/or visual effects activities in Ontario
- Must file an Ontario corporate tax return
- Must incur a minimum of $25,000 in Ontario labour expenditures per eligible production within the claim year (or cumulatively across two consecutive years)
- Productions must be non-interactive audiovisual content produced for commercial exploitation via theatrical, television, or streaming/download platforms
- Must obtain a Certificate of Eligibility from Ontario Creates before claiming the credit with CRA
Quick Assessment
Funding Details
- Amount
- 18% of eligible Ontario labour expenditures (no cap on eligible labour amount)
- Type
- Tax Credit
- Level
- Provincial
- Co-Funding
- Up to 18% of eligible costs
- Deadline
- Ongoing — claim via annual T2 corporate tax return
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe March 2024 rule change is a game-changer: VFX and animation companies providing services to third-party productions no longer need to ensure the overall production holds OFTTC or OPSTC certification. If your company solely provides animation or VFX services to a production house (even a US studio), you can now claim OCASE independently. The 18% rate applies only to Ontario-resident labour — track employee Ontario residency carefully. The administration fee (0.15% of eligible expenditures, min $500, max $10,000) is modest relative to credits received. File your Ontario Creates application well before your T2 deadline.
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Success Profile
Ontario-based animation studios, VFX houses, and post-production companies with significant Ontario-resident labour payrolls working on film, TV, or streaming productions. Companies providing animation/VFX services to productions from other provinces or countries benefit especially following the 2024 decoupling from OFTTC/OPSTC.
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Evaluation Criteria
Certification-based, not merit-scored. Ontario Creates assesses: (1) production qualifies as eligible non-interactive audiovisual content; (2) corporation has permanent Ontario establishment; (3) activities qualify as eligible computer animation/VFX; (4) labour is for Ontario-resident workers; (5) minimum $25,000 Ontario labour threshold met.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 6
Eligible Expenses 3
- Salaries and wages for Ontario-resident employees performing eligible animation/VFX activities
- Payments to Ontario-resident freelancers (unincorporated individuals, partnerships, or single-shareholder corporations)
- Labour for designing, modelling, rendering, lighting, painting, animating, and compositing activities
Ineligible Expenses 8
- Labour for non-Ontario residents
- Equipment purchases or rentals
- Software licenses
- Studio overhead and facility costs
- Audio effects production
- In-camera effects
- Credit rolls and subtitles
- Promotional material animation
Intake Periods
Year-round — Ontario Creates accepts applications on a rolling basis. Claim timing tied to fiscal year-end and T2 filing deadline.
Deadline Notes
No application deadline imposed by Ontario Creates. Taxpayers must comply with CRA tax return filing deadlines. Applications to Ontario Creates for a Certificate of Eligibility can be submitted year-round.
Open Application Portal →Ineligible Organizations
- Sole proprietorships and partnerships (must be incorporated)
- Non-profit organizations
- Companies without Ontario permanent establishment
- Corporations exempt from Ontario corporate income tax
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Stacking partner data not yet available.
Clawback Risk
Low RiskCRA may reassess if audit finds labour was for non-Ontario residents or activities don't qualify. Maintain thorough residency and activity records.
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How OCASE Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Ontario Computer Animation and Specia... | 18% of eligible Ontario | Moderate | Tax Credit Offset | Ongoing — claim via... |
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| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Next deadline: May 29,... |
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