Ontario Provincial Grants to Video Game and Digital Media Software Companies

By Victoria E. Turnbull

Video Game Company Grants

Are There Any Video Game Company Grants or Incentives From the Government?
There are a few video game company grants and tax incentive programs currently being offered by the Ontario government for startup and existing gaming companies. These incentives and video game company grants are meant to help foster growth in the industry by providing these companies with increased tax savings and refunds, allowing for greater reinvestment into growth potential and providing more jobs within the industry.

Start Down the Road to Your Grant – Let’s Explore Your Options

Okay, What are the Specific Incentive Programs Available in Ontario?
The Ontario Media Development Corporation offers the ‘Ontario Interactive Digital Media Tax Credit’ (OIDMTC). This credit can amount to 40% of eligible Ontario labour attributable to the development of interactive media products and eligible marketing and distribution expenditures. In the case of ‘specified products’ or large game companies only 35% of eligible Ontario labour can be awarded.

Does My Gaming Company Qualify for This Credit?
In order to qualify for this credit the corporation must be taxable in Canada and have a permanent establishment in Ontario that is focused towards the development of digital media products. The eligible interactive digital media products must be developed mainly by the applicant corporation in Ontario (>90%) for small gaming companies. For larger companies they must apply as either a ‘Specialized Digital Game Corporation’ (SDGC) or a ‘Qualified Digital Game Corporation’ (QDGC). In this case larger gaming corporations must incur a minimum of $1 million in eligible Ontario labour along with other qualifications.

Final Wrap-Up
Overall the credits being offered by the OMDC can provide very substantial tax savings for any gaming corporation. If you have any questions about the OIDMTC please contact the offices of Hamilton Accounting Solutions.

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