To ensure continued growth of the provincial economy, today’s Ontario Budget emphasized the importance of fostering increased exports, as well as investing in Ontario’s skilled talent and innovative small businesses. Ontario’s Interactive Digital Media (IDM) sector is well suited to assist the Ontario government to reach these goals.
“The IDM sector within Ontario represents one of the most fertile knowledge based industries with growth that is outpacing any other sector. The strategies announced today by the Ontario government will facilitate the creation of even more high skills jobs and will help ease the strain that IDM companies are facing with talent acquisition,” commented Vikas Gupta, CEO of Big Blue Bubble.
Interactive Ontario notes with appreciation that it was invited to participate in numerous discussions over the past year on support mechanisms for the IDM industry with the Ministry of Tourism, Culture & Sport, Ministry of Finance and Treasury Board; and had productive conversations regarding implementation of changes to the Ontario Interactive Digital Media Tax Credit (OIDMTC) & the Interactive Digital Media Fund from the 2015 Budget. We are heartened by the government’s continued support for the IDM sector through these programs.
The significant reduction to the Ontario Innovation Tax Credit and the Ontario Research & Development Tax Credit is cause for concern for the IDM industry, which will not benefit from the redirection of the proposed tax credit savings into other key Ontario sectors.
“The proposed change in the OITC and ORDTC rates effectively amount to a reduction of more than 20% in tax credits aimed at supporting research and innovation in Ontario. This makes Ontario less competitive when it comes to attracting R&D investments and will particularly hurt Ontario small businesses and start-ups which rely on these tax credits to employ highly skilled Ontario talent.” Alexei Gavriline – President, Mobile Capital Network
“Interactive Ontario welcomes continued conversations on how the high-skilled and export-driven Interactive Digital Media sector can help the government in its priorities as set out in the 2016 Ontario Budget.” Christa Dickenson – Executive Director, Interactive Ontario.