Summary of eligibility for the OIDMTC program to recover costs of developing and marketing eligible products such as, video games, educational software, interactive websites and informational products.
2. Overview of OIDMTC
The Ontario Government offers a
40% refundable tax credit
for qualifying Ontario
labour and marketing expenditures
to create interactive digital media
products.
3. Overview of OIDMTC
Eligibility
To be eligible for the OIDMTC a product must be an
interactive digital media product whose primary
purpose is to :
educate, inform, or entertain,
and that achieves its primary purpose by presenting
information in at least two of:
text, sound and images
and must be intended for use by individuals.
4. OIDMTC Eligibility
The product must be
interactive
the user can choose what
information is to be presented
and the
sequence and form
in which it is presented.
5. OIDMTC Examples
• Educational Software
• Video Games
• Informational Products
• Interactive Web sites
6. OIDMTC Eligibility
• All or substantially all of the product must be
developed in Ontario by the qualifying corporation
(90% or more).
• The product cannot be used primarily for interpersonal
communication. The OMDC will interpret “primarily” to
mean “more than 50%.”
• The product cannot be used primarily to present or
promote the qualifying corporation.
• The product cannot be used primarily to present,
promote or sell the products or services of the
qualifying corporation.
8. Labour Expenditures
• Eligible labour expenditures are 100% of
salaries and wages for employees.
• Eligible Labour expenditures must also be
paid to individuals resident in Ontario,
directly attributable to the development of
the eligible product, and paid for services
rendered at a permanent establishment in
Ontario.
9. Marketing Expenditures
Up to $100,000 of eligible marketing and distribution
expenditures related to an eligible product can be included.
Eligible marketing and distribution expenses are those
incurred in the 24-month period prior to the completion of
the eligible interactive digital media product, and those
incurred in the 12 months following the completion of the
product.
Expenditures that have already been claimed as eligible
Ontario labour expenditures cannot be claimed as
marketing and distribution expenditures claim.
10. Marketing Examples
• Trade Shows
• Travel, Meals, Entertainment
• Graphic Design
• Copy Writing
• Google Ads
• Marketing wages for eligible products
A Technological Advance is the discovery by the company of technical knowledge that advances the understanding of information technology or computer science. It is the attempt to achieve Technological Advancement that is important in determining eligibility. A failure can increase knowledge of information technology or computer science by showing that a particular technological approach will not succeed. The implementation of existing technology in the company is not evidence of Technological Advancement. For example, implementing a state- of-the-art computer system does not qualify; it is only the experimental development of technology that is relevant to eligibility. The company must be able to identify the new software construct(s), architecture, or technique(s) sought or developed within the R&D project that advances this understanding of information technology or computer science. Technological Advancement is typically made through innovations in software architectures, designs, algorithms, techniques or constructs. Credible support for these advances includes comparing them against what was previously available (e.g. based on third-party literature).
A Technological Advance is the discovery by the company of technical knowledge that advances the understanding of information technology or computer science. It is the attempt to achieve Technological Advancement that is important in determining eligibility. A failure can increase knowledge of information technology or computer science by showing that a particular technological approach will not succeed. The implementation of existing technology in the company is not evidence of Technological Advancement. For example, implementing a state- of-the-art computer system does not qualify; it is only the experimental development of technology that is relevant to eligibility. The company must be able to identify the new software construct(s), architecture, or technique(s) sought or developed within the R&D project that advances this understanding of information technology or computer science. Technological Advancement is typically made through innovations in software architectures, designs, algorithms, techniques or constructs. Credible support for these advances includes comparing them against what was previously available (e.g. based on third-party literature).
