OCASE

• • In the 2026 Ontario Budget, the Province introduced amendments to the Taxation Act, 2007 to clarify the calculation of the Ontario Computer Animation and Special Effects (OCASE) Tax Credit.

  
  

  • These amendments align the legislation with the policy intent of the changes outlined in the 2024 Ontario Budget. Specifically, in 2024, the OCASE credit was simplified and a minimum threshold was introduced requiring Ontario labour expenditures to be greater than $25,000, to ensure the credit only supports professional productions. The threshold included rules to ensure labour costs claimed in a prior year could not be used again in the current year’s credit calculation to prevent inappropriately inflating the OCASE credit.

  
  

  • These amendments do not change the substantive rules of the credit and reflect how the CRA has been applying the minimum labour expenditure threshold since it was introduced, effective March 26, 2024. Accordingly, the threshold amendments would also apply to relevant labour costs incurred on or after March 26, 2024.

  
  

  • The Canada Revenue Agency (CRA) is responsible for administering Ontario’s corporate taxes including the OCASE. Inquiries regarding OCASE eligibility should be directed to the CRA:
    • at 1-833-446-9034; or
    • by visiting the Film Services units website: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/film-media-tax-credits/film-services-units.html