4 posts

2015 Ontario Budget: OIDMTC Changes

On April 23, 2015 the Ontario government tabled a 2015 budget that proposes significant changes to the programs aimed at supporting film, television and digital media. Ontario Interactive Digital Media Tax Credit (OIDMTC) Eligibility criteria for the program will be restricted to supporting entertainment products as well as educational products for children under the age of 12. The list of specifically excluded products will be extended to include products centered on news and public affairs. Exclusions to promotional products will be further strengthened. These changes are effective immediately and will apply to expenditures incurred after April 23, 2015. Products which qualified for the credit under the old rules but are no longer eligible will qualify for relief with respect to expenditures incurred prior to April 24th, 2015. The “all of substantially all” rule requiring that at least 90% of the product be developed in Ontario by the company claiming the […]

OIDMTC and Eligibility

At first glance, the Ontario Interactive Digital Media Tax Credit, or OIDMTC, has extremely broad applicability. As per the eligibility criteria, and product that either educates, entertains or informs, and has some combination of images, text or sound may be eligible under the program. However, there are a number of caveats with respect to eligible products that must be considered before undertaking an OIDMTC claim. 1. Corporate Education – Products that intended to help educate people on how to perform their work tasks are generally not eligible. What this means is that developing a website that can educate a company’s employees on how to perform particular tasks, what forms to complete etc., even though they may be interactive and inform, are generally ineligible under the OIDMTC. That being said, a product made available to end-users (e.g. the public) that can educate them about a particular profession (e.g. Learning how to […]

The Case for Using SR&ED, OIDMTC, IRAP and Other Government Incentives

As consultants we meet with many different companies and, to our surprise, a substantial number of business owners, particularly owners-managers, are reluctant to tap into the government incentives available to them. Somehow these very capable, self-made, independent businesspeople perceive applying for government assistance or tax credits as an acknowledgement of their inability to succeed on their own. The most prevailing excuse is “it’s too much hassle to deal with the government”. Consider that by maximizing your benefits from various government programs and incentives you actually help the government to achieve their public policy objectives. It may sound funny, but the government needs you. Don’t be shy to apply. Take for example SR&ED. The Federal government uses the Scientific Research & Experimental Development (SR&ED) program to give Canadian industries a competitive edge over international companies. The purpose of the program is to encourage SR&ED activities by reducing the amount of business […]