90 (1) A corporation that is a qualifying corporation for a taxation year and that complies with the requirements of this section may claim an amount for the year in respect of and not exceeding the corporation’s Ontario computer animation and special effects tax credit for the year.  2007, c. 11, Sched. A, s. 90 (1). Amount of tax credit (2) The amount of a qualifying corporation’s Ontario computer animation and special effects tax credit for a taxation year is, (a) 20 per cent of its qualifying labour expenditures for the year for expenditures incurred on or before April 23, 2015; and (b) 18 per cent of its qualifying labour expenditures for the year for expenditures incurred after April 23, 2015. 2015, c. 20, Sched. 40, s. 12 (1). Transitional (2.1) Despite subsection (2), the amount of a qualifying corporation’s Ontario computer animation and special effects tax credit for a taxation year is 20 per cent of its qualifying labour expenditures for the year for expenditures incurred after April 23, 2015 and before August 1, 2016 in respect of an eligible production if all of the following criteria are satisfied: 1. Before April 24, 2015, the corporation has entered into at least one written agreement in respect of a qualifying labour expenditure for the eligible production with a person that deals at arm’s length with the corporation and any of the following criteria are satisfied: i. The agreement is in respect of digital animation or digital visual effects for use in the eligible production. ii. The agreement demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that the corporation has made a significant commitment to production activities related to the eligible production in Ontario. 2. Before August 1, 2015, the corporation has notified the Ontario Media Development Corporation in writing of its intent to apply for a certificate under subsection (5) in respect of the eligible production. 3. Before August 1, 2016, the corporation has applied to the Ontario Media Development Corporation for a certificate under subsection (5) in respect of the eligible production. 4. Principal photography or key animation for the production commenced before August 1, 2015. 2015, c. 20, Sched. 40, s. 12 (1). Qualifying labour expenditure (3) 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 year.  2007, c. 11, Sched. A, s. 90 (3). Eligible labour expenditure (4) The eligible labour expenditure of a qualifying corporation in respect of an eligible production for a taxation year is the amount, if any, by which “A” exceeds “B” where, “A” is the corporation’s Ontario labour expenditure for the year for eligible computer animation and special effects activities in respect of the eligible production, 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 with respect to the eligible production, other than excluded government assistance, that, on the qualifying corporation’s filing-due date for the year, the qualifying corporation or any other person or partnership has received, is entitled to receive or may reasonably expect 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 of eligible computer animation and special effects activities of the eligible production.  2007, c. 11, Sched. A, s. 90 (4). Application for certificate (5) In order to be eligible to 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.  2007, c. 11, Sched. A, s. 90 (5). Same (6) 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.  2007, c. 11, Sched. A, s. 90 (6). Certificate (7) If a qualifying corporation provides the information in accordance with subsection (6) 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 year, certifying the estimated amount of the corporation’s tax credit under this section for the year in respect of each eligible production.  2007, c. 11, Sched. A, s. 90 (7). Certificate to be delivered with return (8) In order to claim an amount under this section for a taxation year, a qualifying corporation shall deliver to the Ontario Minister with its return for the year the certificate most recently issued for the year in respect of its eligible computer animation and special effects activities, or a certified copy of it.  2007, c. 11, Sched. A, s. 90 (8). Revocation of certificate (9) A certificate or amended certificate issued under subsection (7) may be revoked if, (a) an omission or incorrect statement was made for the purpose of obtaining the certificate; (b) the corporation is not a qualifying corporation; or (c) the activities are not eligible computer animation and special effects activities for the purposes of this section.  2007, c. 11, Sched. A, s. 90 (9). Same (10) A certificate that is revoked is deemed never to have been issued.  2007, c. 11, Sched. A, s. 90 (10). Definitions (11) In this section, “assistance” means an amount that would be included under paragraph 12 (1) (x) of the Federal Act 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 prescribed activities 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, (a) is produced for commercial exploitation, (b) is not, (i) news, current events or public affairs programming, or a programme that includes weather or market reports, (ii) a talk show, (iii) a production in respect of a game, questionnaire or contest (other than a production directed primarily at minors), (iv) a sports event or activity, (v) a gala presentation or an awards show, (vi) a production that solicits funds, (vii) reality television, (viii) pornography, (ix) advertising, (x) a production produced primarily for industrial, corporate or institutional purposes, or (xi) a production, other than a documentary, all or substantially all of which consists of stock footage, (c) is not a production for which, in the opinion of the Minister of Culture, public financial support would be contrary to public policy, and (d) is a production in respect of which a certificate has been issued to a qualifying corporation under subsection 91 (15) or 92 (8), if no eligible expenditure in respect of the production is incurred on or before April 23, 2015; (“production admissible”) “excluded government assistance” means the forms of assistance listed in clauses (a) to (d) 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) a tax credit under this Part, (b) a tax credit under any of sections 43.3 to 43.13 of the Corporations Tax Act, (c) a tax credit under section 125.4 or 125.5 of the Federal Act, or (d) payments from the 2015 Ontario Production Services and Computer Animation and Special Effects Transitional Fund administered by the Ontario Media Development Corporation; (“aide gouvernementale”) “Ontario labour expenditure” means, in respect of a qualifying corporation for an eligible production, the amount determined under the prescribed rules; (“dépense de main-d’oeuvre en Ontario”) “prescribed cost” means, in respect of an eligible production, the amount determined under the prescribed rules; (“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 91; (“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 whatever by one or more corporations all or part of whose taxable income is exempt from tax under section 57 of the Corporations Tax Act
or Part III of this Act, and (c) is not a corporation that is a prescribed labour-sponsored venture capital corporation under the Federal regulations. (“société admissible”)  2007, c. 11, Sched. A, s. 90 (11); 2012, c. 8, Sched. 56, s. 1; 2015, c. 20, Sched. 40, s. 12 (2); 2015, c. 38, Sched. 20, s. 1; 2017, c. 8, Sched. 30, s. 6. Ontario Media Development Corporation (12) 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.  2007, c. 11, Sched. A, s. 90 (12). Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 56, s. 1 - 20/06/2012 2015, c. 20, Sched. 40, s. 12 (1, 2) - 04/06/2015; 2015, c. 38, Sched. 20, s. 1 - 24/04/2015 2017, c. 8, Sched. 30, s. 6 - 01/01/2009