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Ontario Interactive Digital Media Tax Credit (OIDMTC)
Refundable tax credit for Ontario digital media
Record updated
- Funding available
- Up to 40% of project cost
- Deadline
- Open continuously
- Location
- Ontario, Canada
Overview
The Ontario Interactive Digital Media Tax Credit is a refundable tax credit for qualifying corporations in Ontario that develop eligible interactive digital media products. It provides 35% or 40% of eligible expenditures, depending on the stream, and supports Ontario labour expenditures plus marketing and distribution costs for non-specified products.
At a glance
Funding available
- Maximum share of project costs
- 40%
- Access new markets
- Launch or market a product/service
Eligible candidates
- Location
- Ontario
- Eligible Industries
- All industries
- Annual revenue
- All revenue ranges
- Organisation size
- All organization sizes
- Audience
- Canadians
- Legal structures
- For-profit business
Start applying for this program
Take a practical assessment to gain a clear understanding of how well this program aligns with your specific needs and long-term goals.
Availability timeline
2026
Periods: 1
Eligibility
Who is eligible?
- Ontario-based Canadian or foreign-controlled corporations.
- Corporations that develop an eligible product at a permanent establishment in Ontario and file Ontario tax returns.
- Ontario-based digital game companies applying under section 93.1 or section 93.2.
Who is not eligible
- Corporations exempt from tax under Part III of the Taxation Act, 2007 (Ontario).
- Corporations controlled directly or indirectly by one or more corporations whose taxable income was exempt from tax under section 57 of the Corporations Tax Act (Ontario) or Part III of the Taxation Act, 2007 (Ontario).
- Prescribed labour-sponsored venture capital corporations.
Eligible expenses
- Ontario salaries and wages incurred in a tax year and directly attributable to the eligible product, paid no later than 60 days after the end of the tax year.
- Eligible remuneration paid to arm's length individuals who are not employees, other taxable Canadian corporations, and partnerships for services directly attributable to the eligible product.
- Marketing and distribution expenditures for non-specified products, incurred in the 24-month period before completion and the 12 months after completion, up to $100,000 per eligible product for all tax years.
Ineligible Costs and Activities
- Operating system software.
- Most websites, search engines, real estate databases, and news and public affairs products.
- Expenditures already claimed as eligible Ontario labour expenditures cannot be claimed as marketing and distribution expenditures.
Eligible geographic areas
- Ontario
Activities funded
- Development of interactive digital media products in Ontario.
- Development and marketing of their own eligible products as non-specified products.
- Development of eligible products under a fee-for-service arrangement as specified products.
- Development of eligible digital games under section 93.1 or section 93.2.
How to apply
- Apply online to Ontario Creates for a certificate of eligibility within 18 months of the end of the tax year in which development of the eligible product was completed.
- File the certificate of eligibility with the CRA together with your corporate tax return to claim the credit.
Documents Needed
- Certificates of eligibility for all media credits being claimed.
- Required schedules.
- T2 Corporation Income Tax Return.
Processing and Agreement
- If the product or digital game is eligible, Ontario Creates will issue a certificate of eligibility indicating the estimated amount of the tax credit.
- Only one certificate of eligibility is issued for all of the eligible products or digital games for the tax year.
- Specialized digital game corporations are entitled to file an annual application, rather than having to apply separately for each product they complete.
- The Canada Revenue Agency (CRA) processes all T2 returns, conducts audit reviews of all refundable Ontario tax credits, and sends out all assessments and reassessments.
- The CRA will not begin to process the media tax credit claim until it receives all of the required documentation, and will process both federal and Ontario claims together and will issue one combined refund.
Additional information
- The OIDMTC is jointly administered by Ontario Creates and the Canada Revenue Agency (CRA).
Contacts
Official sources
Frequently Asked Questions about the Ontario Interactive Digital Media Tax Credit (OIDMTC) Program
What is the Ontario Interactive Digital Media Tax Credit (OIDMTC)?
The Ontario Interactive Digital Media Tax Credit is a refundable tax credit for qualifying corporations in Ontario that develop eligible interactive digital media products. It provides 35% or 40% of eligible expenditures, depending on the stream, and supports Ontario labour expenditures plus marketing and distribution costs for non-specified products.
How much funding can be received?
Ontario Interactive Digital Media Tax Credit (OIDMTC) Funds up to 40% of admissible expenses.
What is the deadline to apply?
The program is accepting continuous intake
Who is eligible for the Ontario Interactive Digital Media Tax Credit (OIDMTC) program?
To be eligible for the Ontario Interactive Digital Media Tax Credit (OIDMTC) program, you must:
Ontario-based Canadian or foreign-controlled corporation
Product developed at a permanent establishment in Ontario
Ontario tax return filed
What expenses are eligible under Ontario Interactive Digital Media Tax Credit (OIDMTC)?
Ontario salaries and wages incurred in a tax year and directly attributable to the eligible product, paid no later than 60 days after the end of the tax year.
Eligible remuneration paid to arm's length individuals who are not employees, other taxable Canadian corporations, and partnerships for services directly attributable to the eligible product.
Marketing and distribution expenditures for non-specified products, incurred in the 24-month period before completion and the 12 months after completion, up to $100,000 per eligible product for all tax years.
Who can I contact for more information about the Ontario Interactive Digital Media Tax Credit (OIDMTC)?
You can contact Government of Ontario by email at taxcredit@ontariocreates.ca or by phone at 416-314-6858.
Where is the Ontario Interactive Digital Media Tax Credit (OIDMTC) available?
The Ontario Interactive Digital Media Tax Credit (OIDMTC) program is available the province of Ontario.