Ontario Government Enhances Tax Breaks for Mobile Content Firms
The Government of the Canadian province of Ontario has tabled its 2008 budget and made a number of changes that directly benefit mobile content companies based in the country. Recently identified as a key sector, digital media companies will see an enhancement in the Ontario Interactive Digital Media Tax Credit as well as new funding for the OMDC Interactive Digital Media Fund.
The OIDMTC has been extended to 2012 for small companies as well as extended the eligibility period for claiming the credit for 2 to 3 years. As well the tax credit level for fee-for-service work as well as for larger corporations will be raised to 25% from the previous 20%.
The Interactive Digital Media (IDM) Fund, administered by the Ontario Media Development Corporation (OMDC) will receive an additional $7 million over four years to increase the market share and support new content production of Ontario-produced online and mobile content.
"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 & CEO of Interactive Ontario, the trade association representing over 180 Interactive Media companies in the province. "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 province's previously announced and recently introduced Next Generation of Jobs Fund will also present new opportunities for Ontario companies to build capacity. It is a $1.15 billion fund to support a wide range of 'new economy' investments including digital media. It is mainly geared to large scale projects that will create more than 100 jobs.
Posted to the site on 27th March 2008