Digital Animation Tax Credit (DATC)

The Digital Animation Tax Credit (DATC) is a refundable tax credit for costs directly related to the development of digital animation in Nova Scotia.

The Digital Animation Tax Credit (DATC) is a refundable tax credit for costs directly related to the development of digital animation in Nova Scotia.

There are two elements to the credit: (1) The basic rate is the lesser of i) eligible production costs, which is 25% of total Nova Scotian production costs, and ii) eligible salaries, which is 50% of the Nova Scotian labour costs; and (2) An additional credit for 17.5% of Total Eligible Nova Scotian Animation Labour Expenditure, which is the Nova Scotian labour that is central to the animation process.