• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Atlantic Canada Business Grants

  • Atlantic Canada
    • Grants
    • Loans
    • Wage Subsidies
  • New Brunswick
    • Grants
    • Loans
    • Tax Credits
    • Wage Subsidies
  • Newfoundland & Labrador
    • Grants
    • Loans
    • Tax Credits
    • Wage Subsidies
  • Nova Scotia
    • Grants
    • Loans
    • Tax Credits
    • Wage Subsidies
  • Prince Edward Island
    • Grants
    • Loans
    • Tax Credits
    • Wage Subsidies

Digital Animation Tax Credit (DATC)

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 for qualifying labor expenditures directly related to the development of eligible digital animation productions in Nova Scotia. This credit provides incentive for digital-animation productions that start key animation after June 30, 2015, and before July 1, 2020. 

Comments on Funding:

The DATC is the sum of the basic tax credit and the animation bonus.
The basic tax credit is the lesser of:

​

50% of the eligible NS labor expenditure less the value of any assistance received;

25% of eligible NS labor expenditure plus eligible overhead expenditure (calculated as 65% of the eligible NS labor expenditure) plus 65% of eligible remuneration less twice the value of any assistance.

The animation bonus is 17.5% of eligible NS animation labor expenditure.


When It Ends:

Ongoing

Deadline:

July 1, 2020

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:

The applicant must submit:

1

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

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.

Program Contact:

​Nova Scotia Department of Finance - Digital Animation Tax Credit

​Digital Animation Tax Credit Guidelines​​​

​Nova Scotia digital animation tax credit​​​

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Posts

  • Work Ability
  • Creative Residencies (Quebec)
  • Share Purchase Tax Credit
  • Agriculture Business Program
  • InnovateNL

Recent Comments

    Copyright © 2020 · eleven40 Pro on Genesis Framework · WordPress · Log in

    • About Me
    • Contact