The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit available to corporations producing interactive digital media products in their Ontario offices. Qualifying products have to be addressed to the general public and should educate or entertain its users.
Under the OIDMTC program, eligible corporations can claim back up to 40% of qualifying product development costs incurred within three years immediately preceding the product release date. The first $100,000 of product marketing and distribution expenditures may also qualify for OIDMTC. There is no cap on the product development expenditures and the applicant corporation does not have to be Canadian owned to qualify. Compared to SR&ED tax credit, OIDMTC covers a wider array of expenses, and many costs not eligible under SR&ED are eligible under OIDMTC. Many of our clients claim both OIDMTC and SR&ED and take full advantage of both programs.