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OPSTC and OCASE Tax Credit Rates to be Grandfathered

May-26-2015

Lawyer Tara Parker, Jaclyn Seidman, Carolyn Stamegna, David Zitzerman
Area Entertainment, Communications

Summary

As discussed in our previous Goodmans Updates (see Ontario “Grandfathers” Recent Budget Changes to Production Services and Computer Animation and Special Effects Film Tax Credits, or Ontario Reduces Production Services and Computer Animation and Special Effects Film Tax Credits), the 2015 Ontario budget introduced changes to the Ontario Production Services Tax Credit (OPSTC) and the Ontario Computer Animation and Special Effects Tax Credit (OCASE) which, among other things, reduced their respective rates from 25% to 21.5% and from 20% to 18% for eligible expenditures incurred after the budget date, April 23, 2015. On May 25, 2015, Ontario Minister of Tourism, Culture and Sport, Michael Coteau, announced that these changes to the OPSTC and the OCASE will be “grandfathered” for all film and tv projects that were sufficiently advanced before April 23, 2015 and stated: “… we intend to table amendments to the Ontario Production Services Tax Credit (OPSTC) and Ontario Computer Animation and Special Effects Tax Credit (OCASE) that would, if passed, provide a transition period to ensure that producers who made a significant commitment to Ontario before the introduction of the Budget would receive the tax credit rates they expected.”

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