Ontario Interactive Digital Media Tax Credit
What Is It?
The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit based on eligible Ontario labour expenditures and eligible marketing and distribution expenses claimed by a qualifying corporation with respect to interactive digital media products.
How much is the Tax Credit?
The OIDMTC is calculated as 40%* of eligible Ontario labour expenditures and eligible marketing and distribution expenses incurred after March 26, 2009 by qualifying corporations, regardless of size of corporation, to create eligible interactive digital media products in Ontario. For those qualifying corporations applying for an OIDMTC on “specified products”, products developed under a fee-for-service arrangement, the OIDMTC tax rate is 35%* on qualifying expenditures incurred after March 26, 2009. For expenditures incurred prior to March 26, 2009 see chart below for applicable tax credit rates.
There is no limit on the amount of eligible Ontario labour expenditures which may qualify and there are no per project or annual corporate limits on the amount of the OIDMTC which may be claimed. Eligible marketing and distribution expenses are capped at $100,000 per eligible product.