Government has clarified and simplified the animation stream of the Digital Media Tax Credit after discussions with the industry.
The Digital Media Tax Credit gives industry a base tax credit of 50 per cent of eligible labour, or 25 per cent of total production costs, whichever is lower.
The new animation stream formula adds an additional rebate of 17.5 per cent of all animation labour costs.
“When it became obvious there was confusion about the animation tax credit, I directed staff to immediately meet with industry representatives and sort it out,” said Finance and Treasury Board Minister Diana Whalen. “The result is a simpler tax credit that also meets our goal of supporting the industry to about the same level as we have in the past.”
The new formula was developed in consultation with the animation industry and Screen Nova Scotia.
“We are pleased that we have clarity on how the new animation tax credit will work,” said Juan Cruz Baldassarre, head, Digital Animators of Nova Scotia (DANS), and CEO of Copernicus Studios Inc. “Pending the details of the regulations, we believe it should keep us competitive in the Canadian animation sector.”
Other details of the animation incentive are being developed with industry input. These details will be in place by July 1. There will be a maximum for individual salary levels that are eligible for the credit.
Adding animation to the Digital Media Tax Credit will not affect the interactive media part of the credit.
For more information, go to novascotia.ca/finance .
Source: Release