If you are planning to develop a website in Ontario for a film, television or internet production you could be eligible for tax credits that can help reimburse you on this expense. The province of Ontario is paying attention to the film and television industry. Here are key points you need to know to prepare for this important tax credit:
- Within the film and television industry, business models often require that websites purchased or licensed by a broadcaster be integrated within the broadcaster’s website
- The recent 2018 Ontario budget announcement included a proposed policy change to the eligibility criteria for the Ontario Interactive Digital Media Tax Credit
- The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit, the tax credit rate is 35% to 40% and is available to qualifying corporations for expenditures related to the creation of eligible Interactive digital media products
- The credit is focused on entertainment (video games) products and educational products for children under 12
- The proposed policy change is now looking to extend the criteria to include certain embedded websites that primarily host content related to a film, television, or internet production
- Those that have been purchased or licensed by a broadcaster are embedded in the broadcaster’s website;
- Those that have not yet received a certificate of eligibility or a letter of ineligibility before November 1, 2017
Ontario’s investments and competitive financial incentives continue to help grow a vibrant film and TV sector that features world-class creative talent, infrastructure and innovative technology making the province a leading production center.
For a complimentary assessment of how these changes might affect your business, please contact one of our OIDMTC consultants:
Christine Tzimika is a senior financial analyst at RDP with over ten years of experience in SR&ED and other tax credit services.