OMDC Newsletter
Summer 2015

Deadline for Grandfathering of OPSTC and OCASE Tax Credit Rates

The 2015 Ontario Budget reduced the Ontario Production Services Tax Credit (OPSTC) and the Ontario Computer Animation and Special Effects Tax Credit (OCASE) rates to 21.5% and 18% respectively. However, the Ontario Government also introduced measures to grandfather the higher tax credit rates of 25% for OPSTC and 20% for OCASE for eligible expenditures incurred after April 23, 2015 and before August 1, 2016 for productions that met certain criteria:

OPSTC:

  1. Before April 24, 2015, your company must have entered into at least one written agreement in respect of a qualifying production expenditure with a person that deals at arm’s length with your company and is:

    i) an agreement that is for the services of a producer, a director, a key cast member, a production crew or post-production crew, or
    ii) an agreement that is in respect of a studio located in Ontario, or a location in Ontario, or
    iii) an agreement that demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that your company has made a significant commitment to production activities in Ontario.
  2. You must apply to the OMDC for an OPSTC Certificate of Eligibility for the production before August 1, 2015.
  3. Principal photography or key animation for the production must commence before August 1, 2015.

OCASE:

  1. Before April 24, 2015, your company must have entered into at least one written agreement in respect of a qualifying labour expenditures for an eligible production with a person that deals at arm’s length with your company and is either:

    i) an agreement for digital animation or digital visual effects for use in the eligible production, or
    ii) an agreement that demonstrates in the opinion of the Minister of Tourism, Culture and Sport, that your company has made a significant commitment to production activities related to the eligible production in Ontario.
  2. You must notify the OMDC in writing of your intent to apply for an OCASE Certificate of Eligibility for the production before August 1, 2015. (NOTE: you must do this by submitting the Notice of Intent to Apply for OCASE Grandfathering form found on the OMDC’s Online Application Portal – OAP).
  3. You must apply to the OMDC for an OCASE tax credit Certificate of Eligibility for the production before August 1, 2016.
  4. Principal photography or key animation for the production must commence before August 1, 2015.

Please note the deadlines that are part of the grandfathering eligibility criteria:

For OPSTC, that means that Friday, July 31, 2015 is your last day to submit your OPSTC application on the OMDC’s Online Application Portal (OAP) for productions that commenced principal photography or key animation for the production before August 1, 2015. N.B. OMDC IT support is not available after 5:00 pm EST.

For OCASE, that means that Friday, July 31, 2015 is your last day to submit your Notice of Intent to Apply for OCASE Grandfathering form on the OAP. N.B. OMDC IT support is not available after 5:00 pm EST. (There is a second stage deadline for OCASE which will require the actual OCASE tax credit application to be submitted on the OAP before August 1, 2016.)

The OAP can be found here: https://apply.omdc.on.ca/

Don’t miss your deadline to have the higher tax credit rate grandfathered!

For productions that commenced principal photography or key animation between August 1, 2015 and November 30, 2015, inclusive, but otherwise met the criteria listed for OPSTC and OCASE grandfathering, you may be eligible for a grant that will provide some relief. Further details will be provided in the fall of 2015.

For grandfathering and all other OPSTC and OCASE Budget changes that have passed into law, make sure you check out the revised Guidelines and FAQs found on our website.