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Digital Animation Tax Credit

The Digital Animation Tax Credit (DATC) is a refundable corporate tax credit that can be claimed for qualifying labour expenditures directly related to the development of eligible digital animation productions by eligible corporations in Nova Scotia.

Please see the DATC Guidelines for more information on the tax credit amount, eligibility requirements, and the application process.

Tax Credit Amount

The base tax credit is the lesser of

  • 50% of the eligible NS labour expenditure less the value of any assistance received, or
  • 25% of eligible NS labour expenditure plus eligible overhead expenditure (calculated as 65% of the eligible NS labour expenditure) plus 65% of eligible remuneration less twice the value of any assistance.

An additional tax credit of 17.5% is available on eligible Nova Scotian animation labour expenditures (i.e. labour directly related to animation specific activities).

How to Apply

  1. Submit a mandatory Part A application to apply for an Eligibility Certificate. Part A applications must be submitted to the program administrator before you begin principal photography or key animation of the digital animation production.

  2. Submit a mandatory Part B application to apply for a Tax Credit Certificate. Part B applications can be submitted once you have an Eligibility Certificate (i.e. Part A approval) and have completed your production. This must be submitted no later than 30 months after the end of the tax year in which expenditures for any eligible digital animation productions were made.

You may need to submit additional forms/documents (including a producer affidavit, certificate of election, and declarations of residency) to support your DATC applications.

Once you receive your Tax Credit Certificate, you can claim the tax credit on your corporation's T2 corporate tax return with the Canada Revenue Agency.

Related Legislation and Regulations

NOTE: Productions eligible to receive the Nova Scotia Film and Television Production Incentive Fund are not eligible for the DATC.

Digital Media Tax Credit

Orange ClockFor More Information

Revenue Policy Officer
Tel: 902.424.2808

Forms and Manuals
Download Forms

Digital Animation Tax Credit Guidelines (PDF)

Digital Animation Tax Credit Application Forms (ZIP file)