Digital Animation or Visual Effects Tax Credit - Update

The Government of British Columbia has updated its bulletin on the Digital Animation or Visual Effects Tax Credit (April 2005), providing more detailed guidance with respect to the legislation.

Bill 7, Income Tax Amendment Act, 2003 amended the Income Tax Act to provide the legislative framework for the Digital Animation or Visual Effects (DAVE) tax credit.

"The DAVE tax credit program provides refundable tax credits on a corporation’s digital animation or visual effects activities that qualify for either the basic Film and Television tax credit or the Production Services tax credit. These credits are claimed when filing the T2 Corporation Income Tax Return, and are refundable to the extent they exceed the corporation’s income tax payable."

For more information, see:
http://www.rev.gov.bc.ca/itb/Bulletins/cit_011.pdf