Nova Scotia Digital Animation Tax Credit

The Nova Scotia Digital Animation Tax Credit (DATC) is a refundable provincial corporate income tax credit for qualifying labour expenditures directly related to the development of eligible digital animation productions in Nova Scotia. The DATC is the sum of the basic tax credit and the animation bonus +Approx. 50% of labour expenditure and 17.5% of eligible NS animation labour expenditure

Grant Deadline

Deadline not available

Funding Amount

Deadline not available

Type of Grant

Tax Credit

Sectors

Arts & Culture, Music, Entertainment, Media

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of Canada

Keywords

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Who is eligible? To be eligible for the DATC, the applicant must be an “eligible corporation”. An “eligible corporation” is a corporation that satisfies all of the following requirements: • It was incorporated in Canada either federally or in one of provinces and is a taxable Canadian corporation. A “taxable Canadian corporation” is defined in subsection 89(1) of the Income Tax Act (Canada). • The corporation must have a “permanent establishment” in Nova Scotia. This normally refers to a fixed place of business in the Province, assets in the Province and personnel in the Province who can contract on behalf of the corporation. Whether a corporation has a “permanent establishment” in Nova Scotia will be determined in accordance with Subsection 400(2) of the Income Tax Regulations and associated Interpretation Bulletin IT-177R2 from the Canada Revenue Agency (CRA). • The corporation must be Canadian-controlled and primarily engaged in film or video production. “Primarily” means more than 50%. • The corporation cannot be a labour-sponsored venture capital corporation or registered as an Equity Tax Credit company or a Community Economic Development Investment Fundundersubsection 3(2) or 11(2) of the Equity Tax Credit Act. To be eligible for the credit, the applicant corporation must demonstrate that it owns the property rights of the production. If a corporation developed an eligible production but does not own the property rights, it may be eligible for the credit if the owner authorizes it to claim the DATC. This is normally done by completing the Certificate of Election form. 

Grant Application website

https://www.novascotia.ca/finance/en/home/taxation/tax101/businesstax/corporateincometax/datc.aspx.html

Contact

Elvira Dalag,

Revenue Officer

Tel: 902.424.2808

Email: Elvira.Dalag@novascotia.ca