Digital animation or visual effects tax credit

An eligible production corporation can claim different British Columbia film and television tax credits, including the digital animation or visual effects tax credit. These credits cannot be claimed if the British Columbia production services tax credit is claimed for that production.

The digital animation or visual effects tax credit is equal to to 17.5% of BC labour expenditure incurred after February 28, 2010, directly attributable to prescribed digital animation or visual effects activities for productions with principal photography that begins after February 28, 2010. It was previously 15%.

The digital animation or visual effects tax credit can only be claimed if the corporation is eligible for and claims the basic tax credit.

For more information, see Part 5 of the British Columbia Income Tax Act.

Claiming the credit

Attach the following on top of your return for the year:

• the eligibility certificate(s) requested from British Columbia Film;
• if it applies, the completion certificate, and a copy of the audited statement of production costs and notes provided to British Columbia Film; and
• a completed copy of Form T1196, British Columbia Film and Television Tax Credit, for each film or video production.

On line 671 of Schedule 5, Tax Calculation Supplementary - Corporations, include the credit in the total amount you are claiming.

You must claim this credit no later than 36 months after the end of the tax year.

Publications

• Form T1196, British Columbia Film and Television Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations

Related topics

• Basic tax credit
• Regional tax credit
• Distant location regional tax credit
• Film training tax credit

Government partners

• Bulletin CIT 009, British Columbia Film and Television Tax Credit
• Bulletin CIT 011, British Columbia Digital Animation or Visual Effects Tax Credit
• British Columbia (provincial site)