Digital Animation Tax Credit (DATC)

Who can apply

1. To be eligible for the DATC, the applicant must be an “eligible corporation”
2. It was incorporated in Canada either federally or in one of provinces and is a taxable Canadian corporation
3. The corporation must have a “permanent establishment” in Nova Scotia
4. The corporation must be Canadian-controlled and primarily engaged in film or video production. “Primarily” means more than 50%
5. The corporation cannot be a labour-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
6. To be eligible for the credit, the applicant corporation must demonstrate that it owns the property rights of the production
7. 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
8. To be eligible for the DATC a digital animation film must be an “eligible production”
9. Eligible productions must: have a minimum viewing time of 20 minutes; be broadcast, distributed or available for viewing no later than 24 months after it; is completed
10. Have a production services agreement or a written agreement between the production’s eligible corporation and 1 of the following for consideration at fair market value: (i) a corporation that is a distributor of film or video productions, a broadcaster that is not associated, within the meaning of Section 256 of the Income Tax Act (Canada), with the eligible corporation
11. Productions eligible to receive the Nova Scotia Film and Television Production Incentive Fund are not eligible for the Digital Animation Tax Credit
12. Part A applications must be submitted before you start principal photography or key animation of the digital animation production
13. Part B applications can be submitted once you have an Eligibility Certificate (Part A approval) and have completed your production
14. An application for a Tax Credit Certificate must be submitted no later than 30 months after the end of the taxation year in which the expenditures for the eligible production were made by the corporation

Who can't apply

• Prohibited for use or exhibition under the Theatres and Amusements Act
• Designed for fundraising, or produced primarily for industrial, corporate or institutional purposes
• Deemed to be contrary to public policy
• Related to video game production
• Consisting of news, current events or public affairs programming, talk shows, games or questionnaires, contests, sport events, award shows, reality television, pornography or advertising