43.8 (1) A corporation that is a qualifying corporation for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable under this Part for the taxation year, after making all deductions claimed under sections 39, 40, 41, 43, 43.3, 43.4, 43.5, 43.6 and 43.7 for the taxation year, an amount not exceeding the amount of its Ontario computer animation and special effects tax credit for the taxation year.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Same (2) A corporation that is a qualifying corporation for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV an amount not exceeding the amount by which its Ontario computer animation and special effects tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Amount of tax credit (3) The amount of a qualifying corporation’s Ontario computer animation and special effects tax credit for a taxation year is the sum of, (a) the lesser of, (i) 20 per cent of that portion, if any, of the corporation’s qualifying labour expenditure for the taxation year in respect of eligible productions that is determined by reference to eligible labour expenditures incurred prior to May 6, 1998 in respect of eligible computer animation and special effects activities, and (ii) the amount of the corporation’s Ontario computer animation and special effects tax credit limit allocated to eligible computer animation and special effects activities in respect of eligible productions for the taxation year, as certified under subsection (6); and (b) 20 per cent of that portion, if any, of the corporation’s qualifying labour expenditure for the taxation year in respect of eligible productions that is determined by reference to eligible labour expenditures incurred after May 5, 1998 in respect of eligible computer animation and special effects activities.  1998, c. 34, s. 41 (1); 2004, c. 16, s. 2 (2). Application for certificate (4) In order to be eligible to deduct or claim an amount in respect of an Ontario computer animation and special effects tax credit under this section, a qualifying corporation shall apply to the Ontario Media Development Corporation for a certificate for the purposes of this section.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 11 (1). Same (5) A qualifying corporation that applies for a certificate shall provide to the Ontario Media Development Corporation the information specified by the Ontario Media Development Corporation for the purposes of this section.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 11 (1). Certificate (6) If a qualifying corporation provides the information in accordance with subsection (5) in respect of its eligible computer animation and special effects activities for a taxation year, the Ontario Media Development Corporation shall issue a certificate, and any amended certificate it considers appropriate, to the qualifying corporation with respect to its eligible productions for the taxation year, certifying, (a) the amount of the qualifying corporation’s Ontario computer animation and special effects tax credit limit to be allocated to eligible computer animation and special effects activities for each eligible production for which eligible labour expenditures are incurred before May 6, 1998; and (b) the estimated amount of the corporation’s tax credit under this section for the taxation year in respect of each eligible production for which eligible labour expenditures are incurred after May 5, 1998.  1998, c. 34, s. 41 (2); 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 11 (1). Certificate to be delivered with return (7) In order to deduct or claim an amount under this section for a taxation year, a qualifying corporation must deliver to the Minister with its return for the taxation year the certificate most recently issued for the taxation year in respect of its eligible computer animation and special effects activities, or a certified copy of it.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Tax credit limit (8) The amount of the Ontario computer animation and special effects tax credit limit of a qualifying corporation and all corporations associated with the qualifying corporation in respect of all eligible Ontario computer animation and special effects activities carried out in the same calendar year by the qualifying corporation or a corporation associated with the qualifying corporation is, (a) $333,000 for the 1997 calendar year; and (b) $500,000 in respect of eligible computer animation and special effects activities for which eligible labour expenditures are incurred after December 31, 1997 and before May 6, 1998.  1997, c. 43, Sched. A, s. 22; 1998, c. 34, s. 41 (3); 2004, c. 16, s. 2 (2). Same (9) No person shall issue certificates under subsection (6) in which the total of the amounts certified in respect of eligible computer animation and special effects activities carried out by the qualifying corporation and by all corporations associated with the qualifying corporation would exceed, (a) $333,000 for the 1997 calendar year; and (b) $500,000 in respect of activities for which eligible labour expenditures are incurred after December 31, 1997 and before May 6, 1998.  1998, c. 34, s. 41 (4); 2004, c. 16, s. 2 (2). Deemed tax payment (10) A qualifying corporation shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the corporation not exceeding the amount, if any, by which, (a) its Ontario computer animation and special effects tax credit for the taxation year, exceeds, (b) the maximum amount, if any, deductible by the corporation under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Time of deemed tax payment (11) A qualifying corporation shall be deemed to make the payment referred to in subsection (10) and the Minister shall be deemed to apply the deemed payment on the day on or before which the corporation would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Revocation of certificate (12) A certificate or amended certificate issued under subsection (6) may be revoked if an omission or incorrect statement was made for the purpose of obtaining the certificate, if the corporation is not a qualifying corporation or if the activities are not eligible computer animation and special effects activities for the purposes of this section.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Same (13) A certificate that is revoked shall be deemed never to have been issued.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Amount of last certificate (14) If the last issued certificate in respect of eligible computer animation and special effects activities for a taxation year certifies an amount less than the amount certified in a previously issued certificate in respect of eligible computer animation and special effects activities for that taxation year, every amount that may be deducted or claimed under this section for that taxation year by a qualifying corporation in respect of eligible computer animation and special effects activities for that taxation year shall be deemed to be the amount that would have been determined if the last certificate issued had been the only certificate issued.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Qualifying labour expenditure for a taxation year (15) The qualifying labour expenditure of a qualifying corporation for a taxation year is the total of all amounts each of which is the eligible labour expenditure of the corporation in respect of an eligible production for the taxation year.  1997, c. 43, Sched. A, s. 22; 2004, c. 16, s. 2 (2). Eligible labour expenditure (16) The eligible labour expenditure of a qualifying corporation in respect of an eligible production for a taxation year is the sum of the amounts, if any, determined under the following paragraphs: 1. The amount equal to the lesser of, i. the portion of the corporation’s Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities in respect of the eligible production that relates to expenditures incurred before May 12, 2005, and ii. the amount by which 48 per cent of the prescribed cost of eligible computer animation and special effects activities incurred by the corporation in the taxation year and before May 12, 2005 in respect of the eligible production exceeds the amount of all government assistance, if any, in respect of eligible computer animation and special effects activities the cost of which is incurred before May 12, 2005 and included in the cost or capital cost of the eligible production that, at the time the corporation’s return is required to be delivered under subsection 75 (1) for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive. 2. The amount by which “A” exceeds “B” where, “A” is the portion of the corporation’s Ontario labour expenditure for the taxation year for eligible computer animation and special effects activities of the eligible production that relates to expenditures incurred after May 11, 2005 and that is determined without reference to any equity investment in the production held by a Canadian government film agency, and “B” is an amount in respect of assistance relating to expenditures incurred after May 11, 2005 with respect to the eligible production, other than excluded government assistance, that, at the time the qualifying corporation’s return is required to be delivered under subsection 75 (1) for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive, equal to the sum of, (a) the amount of the assistance directly attributable to the portion of the Ontario labour expenditure referred to in the definition of “A”, and (b) the amount determined by multiplying the amount of the assistance that is not directly attributable to the portion of the Ontario labour expenditure referred to in the definition of “A” by the ratio of the amount of that portion of the Ontario labour expenditure in respect of the production to the amount of the prescribed cost that is incurred after May 11, 2005 of eligible computer animation and special effects activities of the eligible production.  2005, c. 28, Sched. D, s. 11 (2). Television production (16.1) The amount of the corporation’s Ontario labour expenditure for a taxation year for eligible computer animation and special effects activities in respect of an eligible production that is a television production shall not include any amounts incurred before May 6, 1998 unless the production is directed primarily at children or is suitable for initial broadcast in a standard television time slot of at least 30 minutes or, if the production consists of two or more episodes, each episode of the production is suitable for initial broadcast in a standard television time slot of at least 30 minutes.  1998, c. 34, s. 41 (5); 2004, c. 16, s. 2 (2). Definitions (17) In this section, “assistance” means an amount that would be included under paragraph 12 (1) (x) of the Income Tax Act (Canada) in computing a corporation’s income for a taxation year if that paragraph were read without reference to subparagraphs (v) to (vii); (“aide”) “Canadian government film agency” means a federal or provincial government agency whose mandate relates to the provision of assistance to film productions in Canada; (“organisme cinématographique gouvernemental canadien”) “eligible computer animation and special effects activities” means activities prescribed by the regulations that are carried out in Ontario directly in support of digital animation or digital visual effects for use in an eligible production; (“activités admissibles liées aux effets spéciaux et à l’animation informatiques”) “eligible production” means a film or television production that satisfies the following conditions: 1. The production is produced for commercial exploitation. 2. The production is not described in any of subparagraphs (b) (i) to (xi) of the definition of “excluded production” in subsection 1106 (1) of Schedule 1 to Ontario Regulation 322/97 (“Ontario Film and Television Tax Credit”) made under this Act. 3. It is not a production for which, in the opinion of the Minister of Culture, public financial support would be contrary to public policy. 4. If principal photography for the production commences before November 1, 1997, it is not a variety production, educational or instructional production or programming in a magazine format. 5. If the production is a television production for which all amounts included in the corporation’s Ontario labour expenditure for the production are incurred before May 6, 1998, the production is directed primarily at children or is suitable for initial broadcast in a standard television time slot of at least 30 minutes or, if the production consists of two or more episodes, each episode of the production is suitable for initial broadcast in a standard television time slot of at least 30 minutes; (“production admissible”) “excluded government assistance” means the tax credits listed in clauses (a) to (f) of the definition of “government assistance” in this subsection; (“aide gouvernementale exclue”) “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including, (a) an Ontario film and television tax credit under section 43.5, (a.1) an Ontario production services tax credit under section 43.10, (b) a tax credit under this section, (c) a Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada), (d) a film or video production services tax credit under section 125.5 of the Income Tax Act (Canada), (e) a co-operative education tax credit under section 43.4 to the extent that it relates to expenditures incurred after May 11, 2005, or (f) an apprenticeship training tax credit under section 43.13 to the extent that it relates to expenditures incurred after May 11, 2005; (“aide gouvernementale”) “Ontario labour expenditure”, of a qualifying corporation in respect of an eligible production, means the amount determined under the rules prescribed by the regulations; (“dépense de main-d’oeuvre en Ontario”) “prescribed cost” means, in respect of an eligible production, the amount determined under the rules prescribed by the regulations; (“coût prescrit”) “producer” means, in respect of an eligible production, the individual who would be considered to be the producer of the production for the purposes of determining if the production were an eligible Ontario production for the purposes of section 43.5; (“producteur”) “qualifying corporation” means a Canadian corporation that, (a) performs, at a permanent establishment in Ontario operated by it, eligible computer animation and special effects activities, (i) for an eligible production that it undertakes, or (ii) for an eligible production under contract with the producer of the production, (b) is not controlled directly or indirectly in any manner by one or more corporations all or part of whose taxable income is exempt from tax under this Part or Part I of the Income Tax Act (Canada), and (c) is not a corporation that is a prescribed labour-sponsored venture capital corporation under the regulations made under the Income Tax Act (Canada). (“société admissible”)  1997, c. 43, Sched. A, s. 22; 1998, c. 5, s. 16 (2, 3); 1998, c. 34, s. 41 (6, 7); 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 11 (3-6). Ontario Media Development Corporation (18) A reference in this section to the Ontario Media Development Corporation includes a reference to such person as the Minister of Culture may designate to carry out the functions of the Ontario Media Development Corporation for the purposes of this section.  2005, c. 28, Sched. D, s. 11 (7). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. A, s. 22 - 07/05/1997; 1998, c. 5, s. 16 (1, 2) - 07/05/1997; 1998, c. 5, s. 16 (3) - 01/11/1997; 1998, c. 34, s. 41 (1-6) - 05/05/1998; 1998, c. 34, s. 41 (7) - 01/11/1997 2004, c. 16, s. 2 (2)
- 01/01/2004 2005, c. 28, Sched. D, s. 11 (1-7) - 11/05/2005