Ontario Film Tax Credit Incentive Program Toronto Production: OFTTC, OPSTC, and OCASE Explained
Ontario’s production incentive structure is among the most sophisticated and competitive in North America, built on a three-tier tax credit system that addresses different types of production activity: Canadian-controlled domestic productions, foreign-owned service productions, and specialized digital animation and visual effects work. The Ontario film tax credit incentive program Toronto production ecosystem comprising the Ontario Film and Television Tax Credit (OFTTC), the Ontario Production Services Tax Credit (OPSTC), and the Ontario Computer Animation and Special Effects Tax Credit (OCASE) creates a layered incentive architecture that can be combined with federal credits to generate substantial production cost offsets. For anyone providing Toronto videographer services or evaluating Ontario as a production destination, understanding how these credits interact is essential to maximizing the financial advantages of filming in the province.
OFTTC: The Domestic Production Credit
The Ontario Film and Television Tax Credit (OFTTC) is a refundable tax credit calculated at 35 percent of eligible Ontario labour expenditures incurred by qualifying Canadian-controlled production companies. An enhanced rate of 40 percent applies to the first $240,000 of qualifying labour expenditure for first-time producers, incentivizing new entrants into Ontario’s production ecosystem. The OFTTC is jointly administered by Ontario Creates (an agency of the Ministry of Tourism, Culture and Sport) and the Canada Revenue Agency.
A 10 percent regional bonus applies to productions shot entirely outside the Greater Toronto Area (GTA), or those with at least five location days in Ontario (or the number of location days equal to the number of episodes for a series) with 85 percent of Ontario location days outside the GTA. This regional bonus encourages geographic dispersal of production activity beyond Toronto, supporting production economies in cities like Hamilton, Ottawa, and communities across the province. Eligible productions must spend at least 75 percent of total final costs on Ontario expenditures and have an agreement with an Ontario-based Canadian distributor or CRTC-licensed broadcaster for the production to be shown in Ontario within two years of completion.
OPSTC: The Service Production Credit
The Ontario Production Services Tax Credit (OPSTC) is the credit most relevant to foreign-owned productions filming in Toronto the credit that drives Hollywood’s investment in Ontario. Calculated at 21.5 percent of all qualifying Ontario production expenditures (a broader base than the labour-only OFTTC, encompassing labour, service contracts, and tangible property expenditures), the OPSTC is available to both Canadian and foreign-owned corporations with a permanent establishment in Ontario. There are no per-project or annual corporate tax credit limits, making the program scalable to productions of any size.
The OPSTC can be combined with the federal Film or Video Production Services Tax Credit of 16 percent of qualified Canadian labour expenditures, creating a combined incentive structure that makes Ontario one of the most cost-effective production jurisdictions in North America. The minimum production cost is $1 million (CAD) for features, with lower thresholds for series and pilots. Ontario labour expenditures must be at least 25 percent of qualifying production expenditures, ensuring meaningful local economic impact. This is the credit structure that attracted Amazon MGM Studios and Netflix to establish permanent production hubs in Toronto.
OCASE: The VFX and Animation Credit
The Ontario Computer Animation and Special Effects Tax Credit (OCASE) is a refundable tax credit calculated at 18 percent of eligible Ontario labour expenditures for digital animation and visual effects activities. There is no cap on eligible labour expenditures, and the credit is available to both Canadian and foreign-owned corporations. To qualify, the production must have received either an OFTTC or OPSTC certificate, tying the VFX credit to actual production activity in the province.
OCASE has been instrumental in building Toronto’s growing VFX sector, which includes major facilities like DNEG’s King West studio. The credit ensures that post-production visual effects work stays in Ontario rather than being shipped to competing jurisdictions, supporting the full production pipeline from principal photography through final delivery. For productions with significant VFX components superhero films, science fiction television, animated features the combination of OPSTC and OCASE creates a compelling financial argument for keeping the entire production lifecycle in Ontario.
