Atlantic Canada Business Grants

Digital Media

Digital Animation Tax Credit (DATC)

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Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Nova Scotia Digital Animation Tax Credit (DATC) is a refundable provincial corporate income tax credit which provides incentive for digital-animation productions that start key animation before January 1, 2026.

Comments on Funding:

The DATC is the sum of the:

  1. 1
    50% of qualifying expenditures deducted by total assistance,
  2. 2
    17.5% of eligible digital animation labour expenditures.

When It Ends:

Ongoing

Deadline:

January 1, 2026

Eligibility:

The applicant must:

  • be incorporated in Canada either federally or in one of provinces and be a taxable Canadian corporation,
  • have a “permanent establishment” in Nova Scotia,
  • be Canadian-controlled and primarily engaged in film or video production (more than 50%),
  • not be a labor-sponsored venture capital corporation or registered as an Equity Tax Credit company or a Community Economic Development Investment Fund under subsection 3(2) or 11(2) of the Equity Tax Credit Act,
  • demonstrate that it owns the property rights of the production or have the authorization of the property rights owner to claim the DATC.

Application Steps:

1

Applicant must submit a mandatory Part A application before principal photography or key animation of the digital animation production begins and receive an "eligibility certificate" before an application for the Tax Credit Certificate can be made.

2

Applicant must submit a Part B application for a Tax Credit Certificate once he obtained the eligibility certificate and no later than 30 months after the end of the taxation year in which the expenditures for the eligible production were made.

Documentation Needed: 

The applicant must submit the following documentation in support of his Part A application form:

  • a completed, signed and dated Part A application form,
  • the Synopsis & Script/Treatment of the production,
  • a detailed locked budget signed and dated by the Producer,
  •  the Certificate of Incorporation,
  • the Shareholder Registers (for both the applicant and parent company),
  • the Production Service and/or Co-production agreements, if applicable,
  • the Broadcaster/Distribution agreement, if applicable.

The applicant must submit the following documentation in support of his Part B application form:

  • a completed, signed and dated Part B application form,
  • statements detailing the expenditures of the eligible digital animation production (Producers Affidavit, Review Engagement Report or Audit Report),
  • the Production Service and/or Co-production agreements, if applicable,
  • the Eligibility Certificate,
  • the Certificate of Election, if not provided in the Part A application,
  • the Broadcaster/Distribution agreement, if applicable.

The applicant must also submit the original or a copy of the tax certificate issued by the province with his return.

Other Things to Note:

Date modified: 2022-05-16 - Source 2

Program Contact:

Nova Scotia Department of Finance - Digital Animation Tax Credit

Digital Animation Tax Credit Guidelines

Nova Scotia digital animation tax credit

Digital Media Tax Credit (DMTC)

by |

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia.

Comments on Funding:

Funding will be the lesser of 50% of qualifying expenditures, or 25% of total expenditures made in Nova Scotia.

A 10% geographic area bonus on qualifying expenditures (5% bonus on total expenditures) is available for products developed outside the area that is within a radius of 30 kilometers driving distance from Halifax City Hall.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

  • be a taxable Canadian corporation,
  • have a “permanent establishment” in Nova Scotia, meaning: a fixed place of business in the province, assets in the province to develop the product and personnel in the province who can contract on behalf of the corporation,
  • be developing an interactive digital media product,
  • not be a prescribed labor-sponsored venture capital corporation under the federal Income Tax Act.

To be eligible for the geographic area bonus, the corporation must:

  • have a permanent establishment in the eligible geographic area, 
  • pay at least 50% of eligible salaries for the development of the eligible product to employees who work out of a permanent establishment in the eligible geographic area.

Application Steps:

1

The applicant must submit the completed, dated and signed application forms to the Nova Scotia Department of Finance and Treasury Board.

Documentation Needed: 

The applicant must submit the following documentation:

  • the application and expenditure form, 
  • Declaration of Residency Forms for all employees listed in the expenditure report,
  • invoices for all third party work completed,
  • statements of eligible remuneration for all invoices,
  • statements detailing the qualifying expenditures and total expenditures of the “eligible product” (Affidavit, Review Engagement Report or Audit Report),
  • Articles of Incorporation and Memorandum of Association,
  • Shareholders Registry,
  • Corporate chart,
  • Gantt Chart,
  • the completed Digital Media Product,
  • the chain of title documentation - if the applicant does not retain principle ownership of the “eligible product”, he must provide a Certificate of Election form signed by the entity who owns the property rights,
  • Exchange of Information Form, which permits the Taxation and Federal Fiscal Relations Division (TFFRD) to exchange information related to the application for audit and verification purposes.

Other Things to Note:

Marketing and distribution expenditures to a maximum of $100,000 per eligible product became part of Qualifying Expenditures

Program Contact:

​Nova Scotia Department of Finance - Digital Media Tax Credit

​DIGITAL MEDIA TAX CREDIT GUIDELINES​​​