Posts Tagged ‘OIDMTC’

Digifest 2015- Canada’s Digital Festival

Digifest, Canada’s premier digital festival, will take place from May 7th to May 9th 2015 at the Corus Quay building in Toronto, Ontario. This event showcases digital media, art, and technology content, with everyone from architects to app developers to entrepreneurs coming together to share their works and experiences within the digital media industry.

Digifest was founded in 2002 by Luigi Ferrara, Dean of the Centre for Arts & Design at George Brown College in Toronto, with the festival originally focusing on digital culture and design. In 2011, George Brown expanded the scope of the festival to include academia, industries within the digital media realm, and the public in order to celebrate digital creativity. For individuals interested in seeing innovative projects being developed and seeing students from Canadian academic institutions exhibit their projects, attending this event would be an excellent opportunity.

NorthBridge Consultants has over 20 years of experience assisting companies within the digital media industry to maximize the amount they receive from government funding programs, most notably the SR&ED and OIDMTC tax credits. Please do not hesitate to contact one of our Client Managers to see how we can help grow your business.

The 2015 Ontario Provincial Budget: Digital Media Review

In the 2015 Ontario Budget, published by the Ministry of Finance, the Government of Ontario announced a review of the Ontario Interactive Digital Medial Tax Credit program (OIDMTC). As a result of this review, the government has re-stated and re-emphasized the program to focus on interactive entertainment products, and on educational products for children under the age of 12. Under the reviewed OIDMTC program, ineligible products would include news applications, search engines, social media platforms, and functional databases.

Ontario also proposed an amendment to the requirement that at least 90% of the digital media product be developed in Ontario by the company applying to the OIDMTC program. This requirement will be replaced with new stipulations:

  1. 80% of total labour costs for eligible products must be attributable to qualifying salaries and wages as well as qualifying remuneration (contract payments to Ontario freelancers operating either as sole proprietors or through personal service corporations).
  2. 25% of total labour costs for eligible products must be attributable to wages of the corporation’s employees.

These rules will not apply to projects that were started before April 24th, 2015.

In the budget, it was also reported that Ontario provided approximately $335 million between 2014-2015 to the film and television industry through the Ontario Film and Television Tax Credit (OFTTC), the Ontario Production Services Tax Credit (OPSTC), and the Ontario Computer Animation and Special Effects Tax Credit (OCASE). Moving forward, the OPSTC will be reduced from 25% to 21.5% for expenditures incurred after April 23rd, 2015, and the OCASE will be reduced from 20% to 18% for expenditures incurred after the same time. Despite the reductions, both programs are noted to remain competitive compared to other Canadian jurisdictions.

 

 

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Communitech: A Leader in Global Technological Innovation

In 1997, Communitech was founded in the Waterloo Region by a group of entrepreneurs to establish a community with the aim of supporting technological innovation at all geographic levels: regionally, provincially, and nationally. By the beginning of 2015, this not-for-profit organization has created a tech hub consisting of 1,000 companies (including Google, BlackBerry, and Open Text) and continues to help new start-ups achieve success throughout Canada through their network of dedicated industry professionals. Regionally, Communitech aims to keep the Waterloo Region competitive and at the center of the technology industry through joining and establishing focused networks. Provincially, they facilitate economic and commercial growth in Ontario as a member of the Ontario Network of Excellence, while nationally Communitech founded the Canadian Digital Media Network (CDMN) in 2009 in order to reinforce Canada’s place as a top dominant member of the international digital media market, stimulating wealth and job growth for Canadian businesses in this competitive field.

With over 20 years’ experience securing government funding for Ontarian companies in many industries, NorthBridge has helped innovative Information and Communicating Technology (ICT) companies in the private sector receive IRAP funding and SR&ED tax credits for innovation, and OMDC Interactive Digital Medial (OIDMTC) non-refundable tax credits for the creation of education- and entertainment-based interactive digital media products. NorthBridge has the knowledge to assist early-stage clients to secure funding.  Contact NorthBridge today and see how we can help you secure funding and tax credits to grow your business.

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Linking SR&ED to OIDMTC Tax Credits

The Scientific Research and Experimental Development (SR&ED) tax credit provides support for digital media companies that are investing in innovative technologies and experimental development projects. Eligible companies can receive support for labour, materials, overhead, and subcontract costs related to scientific research or experimentation development. The SR&ED tax credit works seamlessly with other programs including the Ontario Interactive Digital Media Tax Credit (OIDMTC). The OIDMTC tax credit supports Ontario companies that are developing interactive digital media products that educate, inform, or entertain using sound, images, and/or text. Eligible companies can potentially receive support for production labour, subcontractor costs, and marketing expenses related to the digital media project.

NorthBridge currently works with several digital media companies in Toronto, including a firm that focuses on developing high impact interactive web products such as mobile applications, websites, games, motion graphics, and social media campaigns. NorthBridge has been able to secure both refundable SR&ED tax credits for back-end software development, and refundable OIDMTC tax credits for their digital media production and marketing costs. Receiving funding from both these programs has allowed the firm to optimize their return from government incentive programs and grow their business by taking on innovative projects from high-profile clients.

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OIDMTC Supports Development of Digital Media in Ontario

The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit that supports the development of interactive digital media in Ontario.  Eligible projects must be interactive digital media  that includes content designed to educate, inform, or entertain that incorporates at least two of the following: text, images, or sound.

The tax credit funds up to 40% of eligible labour, marketing, and distribution costs for products designed, produced, and sold by a gaming or digital media company. The maximum contribution per project is $100,000 for marketing and distribution costs, which can be incurred 24 months before product launch and up to 12 months after, but the labour contribution is unlimited. In order to be eligible for the program, a company must be operating in Ontario and not have revenue greater than $20 million, and have developed more than 90% of the product(s) in question.

Companies that produce interactive digital media projects for clients on contract are also eligible for funding, though their eligible labour costs are capped at 35% and no funding is available for marketing and distribution.

NorthBridge Consultants has experience with the OIDMTC application process and will provide the necessary guidance for your claim. Our team of business analysts and technical writers can assist with the completion of application information, the preparation of financial information, tracking and documentation of eligible expenditures, and the required reporting after application submission.

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