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.