We have worked closely with Ontario Creates, which has been instrumental in stimulating job creation and exports in the IDM sector via the Ontario Interactive Digital Media Tax Credit (“OIDMTC”), the IDM Fund, and its other programs.
The pre-budget submission, which was prepared with IO’s advocacy committee, offered recommendations regarding:
- Extending OIDMTC support to SMEs by reducing the labour threshold required to apply
- Efficiencies for the OIDMTC approval process to expedite the delivery of funds and alleviate Ontario Creates’ administrative load
- Allowing OIDMTC applicants to collaborate on projects and collectively meet program requirements
- The continued support for the IDM Fund, which supports technical, creative and business innovation and company growth
These recommendations, if implemented, will support the continued growth of Ontario’s IDM industry, stimulate exports and create well-paid jobs.
Release of the 2019 Ontario Budget
On April 11, 2019, the Government of Ontario released the 2019 Ontario Budget. Interactive Ontario is extremely pleased that the labour threshold for eligibility for OIDMTC annual filing for video game companies has been reduced from $1 million to $500,000.
We have advocated for these amendments through our participation in the OIDMTC working group and our pre-budget submissions.
Companies can apply for tax credit certification annually, rather than having to apply separately for each product they complete. This allows for increased accuracy in financial planning, production planning, and stable hiring and growth. As well, the reduction of the labour threshold for OIDMTC eligibility allows smaller game developers to gain access to the tax credit.
This change is effective for taxation years beginning after April 11, 2019.