Mark Androvich
21:22 (BST)
26/03/2008
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Ontario enhances tax credits
Tax credit raised to 25 per cent for larger companies
In its 2008 budget, the Government of Ontario has enhanced its tax credits for interactive digital media companies and has also provided new funding for the OMDC Interactive Digital Media Fund.
The tax credit has been extended to 2012 for small companies, with the eligibility period for claiming the credit extended for 2 to 3 years.
For larger corporations, as well as fee-for-service work, the tax credit level has been raised from 20 per cent to 25 per cent.
"The McGuinty government has sent a clear signal that they are bullish about the opportunities for the Ontario interactive media industry" says Ian Kelso, president and CEO of the trade association Interactive Ontario.
"Sectors like video games, mobile and e-Learning are poised for rapid growth and require this kind of support to fuel the massive demands of innovation and growth."
The Ontario Government also announced that the Interactive Digital Media Fund - administered by the Ontario Media Development Corporation (OMDC) - will receive an additional CAN 7 million over four years to increase the market share and support new content production of Ontario-produced online and mobile content.
"Ontario has a real opportunity to build a world class creative cluster that is tuned to the massive economic transformations occurring globally in media and content industries," Kelso added.
"We have the talent, the infrastructure and the entrepreneurial acumen. With this announcement we are pleased to enhance our toolkit that can leverage investment."
Canadian government subsidies have recently come under fire from Tiga for creating unfair competition.
Tiga and ELSPA have unsuccessfully urged the UK government to create tax breaks of their own even as a WTO ruling is sought on the issue.
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