On May 25, 2015, Ontario Minister of Tourism, Culture and Sport,
Michael Coteau, announced that the changes to the Ontario
Production Services Tax Credit (OPSTC) and the Ontario Computer
Animation and Special Effects Tax Credit (OCASE) noted in
Ontario's 2015 budget will be "grandfathered" for all
film and tv projects that were sufficiently advanced before the
budget date, April 23, 2015. (For a description of the changes, see
our April 24, 2015 Update, Ontario Reduces Production Services and Special Effects Film
Tax Credits). The Minister 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."
The 2015 Ontario budget reduced the rates of the OPSTC from 25%
to 21.5% and the OCASE from 20% to 18% and the rate cuts were
immediately effective as of the budget date. Key industry
stakeholders, including Film Ontario and the Motion Picture
Association - Canada, were instrumental in consulting with the
Ontario government regarding the importance of
"grandfathering" the OPSTC/OCASE changes as part of
Ontario's ongoing effort to provide predictable and reliable
support to the film and television sector. By agreeing to the
"grandfathering", the Ontario government has reinforced
the province's reputation as a leading stable jurisdiction in
which to produce film and tv productions.
The Minister's full statement is set out below:
The 2015 Provincial Budget announced changes to the film and
television tax credits that would ensure the long-term
sustainability of our tax credits and protect our position as the
most competitive jurisdiction in the country.
Our government has a strong relationship with our industry
partners and I was pleased to work with them through the Budget
committee process. We received valuable feedback from the film and
television sector on the need for stable and reliable support.
Productions require intense planning and predictable budgets long
before the cameras roll.
For this reason 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. This
approach includes a combination of provisions through the tax
system and a grant.
Ontario is the number one film and television production centre
in Canada. The entertainment and creative cluster supports over
206,000 jobs and contributes $12.4B to the provincial economy. With
these proposed changes I am confident we will continue to attract
new investment, create jobs and foster economic growth.
- Hon. Michael Coteau
Minister of Tourism, Culture and Sport
Minister responsible for the 2015
Pan/Parapan Am Games
The content of this article does not constitute legal advice
and should not be relied on in that way. Specific advice should be
sought about your specific circumstances.
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