Ontario VFX Tax Credit Reduction Details

CUT! Ontario film tax credits reduced, a knock to industry’s tax stability - BNN News

More details have emerged regarding the cut to the Ontario VFX Subsidy. In addition to cutting OCASE from 20% of labour costs to 18%, there are two additional points that artists should know about.

From the budget:

“To ensure that salaries and wages paid to Ontario based individuals for services provided in the Province represent more than a nominal amount of a corporation’s total eligible expenditures, a qualifying corporation’s Ontario labour expenditures (including labour under a service contract) would have to amount to at least 25 per cent of total expenditures.”

This means that 25% of all labour costs for the production must be spent in Ontario (including pre, post and production). Many projects that only do their post-production in Ontario would not be eligible for any of the tax credit.

Again, from the budget:

"In addition, to better target the credit, Ontario proposes to require that productions started after April 23, 2015, must also receive the OFTTC or the OPSTC in order to claim the OCASE.”

This could mean that that your studio couldn’t apply for OCASE, as many projects don’t have a OPTSC or OFTTC component. (OPTSC is the Ontario Production Services Tax Credit, OCASE is the Ontario Computer Animation and Special Effects Tax Credit, and OFTTC is the Ontario Film and Television Tax Credit)

If you want to let the government know about your opinion regarding these changes to Ontario’s Tax Credits, you can send letters to the addresses below:

Premier Hon Kathleen O. Wynne - Contact Information


Queen’s Park  Room 281, Main Legislative Building,

Queen’s Park Toronto, Ontario M7A 1A1

Finance Minister Sousa Hon Charles Sousa - Contact Information


Ministry of Finance 7th Floor, Frost Building South

7 Queen’s Park Crescent Toronto, Ontario M7A 1Y7

Minister of Tourism, Culture and Sport, and PanAm/ParaPan American Games Hon Michael Coteau - Contact Information


Ministry of Tourism, Culture and Sport/Minister Responsible for the 2015 Pan/Parapan American Games

9th Floor, Hearst Block 900 Bay Street Toronto, Ontario M7A 2E1

Here's a link to the 2015 budget, check pages 328 to 330 for details.

Photo Credit: Budget by Simon Cunningham