The Ontario Interactive Digital Media Tax Credit (OIDMTC) is administered by the Ontario Media Development Corporation (OMDC) in conjunction with the Canada Revenue Agency. It is a refundable tax credit that is based on eligible expenditures associated with the development and commercialization of interactive digital games and/or educational products.
To be eligible, companies must be Canadian corporations that file an Ontario tax return and must have developed an eligible product at a permanent facility located in Ontario. Eligible products are those whose primary purpose is either to entertain (any age group) or to educate children under 12 and must achieve this purpose by presenting information through at least two of (i) text, (ii) sound, and (iii) images. The OMDC divides products eligible for the OIDMTC into four categories: non-specified products, specified products, eligible games developed by a qualifying digital game corporation, and eligible games developed by a specialized digital game corporation. See the OMDC’s FAQ for the criteria used to distinguish these categories.
Non-specified products: A refundable tax credit worth 40% of eligible labour and marketing/distribution expenditures, with no annual limit on the amount of labour expenditures claimed and an annual limit of $100,000 on the amount of marketing/distribution expenditures claimed.
Specified products, games developed by qualifying corporation, games developed by specialized corporation: A refundable tax credit worth 35% of eligible labour expenditures, with no annual limit on the amount claimed.
Applications must be submitted online through the OMDC’s portal.
More information is available at the OIDMTC home page.
The OMDC’s contact points for the OIDMTC are given on the home page linked to above.
Wilson Cook Associates can assist with applications for this program. If interested please contact us at Wilson Cook Associates.