The Ontario Interactive Digital Media Tax Credit (OIDMTC) covers the cost of development and marketing costs as they relate to the creation of products that meet the following criteria:
a) The product must be an interactive digital media product whose primary purpose is to educate, inform or entertain
b) It must achieve its primary purpose by presenting information in at least two of (i) text, (ii) sound and (iii) images
There are also additional minor requirements, which require that the companies (and the development work performed) be located in Ontario. However, the OIDMTC’s criteria feature relatively broad definitions that cover a wide variety of different products including interactive websites, mobile applications and even video games.
Ontario corporations can receive up to 40% on eligible expenditures related to development and marketing of the product. Eligible expenditures can include:
- Advertising, promotion and distribution;
- Digital media products with a fee-for service arrangement;
- Games, training systems, simulators, educational products; and
- Interactive digital projects that are incomplete or in development at time of application
