The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit. It is available to corporations that develop interactive digital media products in Ontario.
The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.
The benefit is equal to:
For corporations that develop their own products, eligible expenses include eligible labour, marketing and distribution expenses used to develop and promote eligible products.
For corporations that develop products under a fee-for-service arrangement, eligible expenses include labour expenses used to develop eligible products.
Eligible expenses include 100% of contractor payments related to the contractor employees' salaries and wages.
For a certified game developer, eligible expenses include Ontario salaries and wages. The developer must incur at least $1 million of Ontario labour expenses per year developing eligible interactive digital media games to qualify.
For expenses incurred after March 26, 2009, digital media game developers with at least $1 million in eligible labour expenses over 36 months can claim the OIDMTC under a fee-for-service arrangement.
To qualify, an eligible corporation
To qualify as a small corporation
Corporations must obtain a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC), and attach it to their T2 Corporation Income Tax Return (T2 return).
Corporations must claim the tax credit on Schedule T2SCH560, and file it with their T2 return.