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content/wiki/ontario-hub--ontario-funding-landscape.md

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+---
+title: Ontario Funding Landscape
+collection: Ontario Hub
+path: Ontario Hub/Ontario Funding Landscape
+parentDocument: null
+outlineId: e8c241c0-7c0f-45c8-919f-e4b3affc8c42
+updatedAt: '2026-03-16T16:06:00.507Z'
+createdBy: Jennie R.F.
+---
+- [ ] Explain ideas for experimental R&D
+
+
+---
+
+OIDMTC details, Ontario Creates funding programs, any provincial co-op incentives, GTA-specific resources. Feeds into Session 6 content.
+
+## OIDMTC 40% labour credit
+
+[Ontario Interactive Digital Media Tax Credit](https://ontariocreates.ca/tax-incentives/oidmtc) is an extremely valuable incentive for ON studios.
+
+(Note: studios can claim 3 years from fiscal year end retroactively!!)
+
+It provides:
+
+* a refundable tax credit of 40% on eligible Ontario labour expenditures for studios that develop and self-publish their own games (weirdly called "non-specified products")
+* up to $100,000 in marketing and distribution expenditures per product
+* Fee-for-service work earns a 35% credit.
+
+*There is no annual cap on eligible labour expenditures*
+
+Administered through Ontario Creates (which issues a certificate of eligibility) and the CRA (which processes thje credit on the T2).
+
+Studios must apply within 18 months of the tax year **in which a product was completed**
+
+Administration fee is 0.15% of eligibile expenditures ($1,000-$10,000)
+
+There are 4 streams, with different requirements.
+
+
+1. Non-specified (own IP, self-published)
+
+   
+   1. 40%
+   2. 80/25 rule; product must be completed; revenmue stream required.
+2. Specified (fee-for-service)
+
+   
+   1. 35%
+   2. 80/25 rule; arm's-length purchaser; product completed
+3. Qualifying digital game corporation
+
+   
+   1. 35%
+   2. Min $1M Ontario labour over 36 months; product need not be completed
+4. Specialized digital game corporation
+
+   
+   1. Min $500K Ontario labour/year; 80%+ payroll or 90%+ revenue from games; annual filing
+
+### The 80/25 rule
+
+* 80% of total dev labour must be performed in Ontario
+* 25% must be paid as wages to employees of the claiming corporation (**not contractors**)
+  * This second requirement is particularly important for co-ops. Worker-members ***must be on payroll*** receiving T4 slips to count toward the 25% employee test. If a co-op treats its members primarily as independent contractors, it will likely fail this threshold.
+* \
+
+### Stacking OIDMTC
+
+#### SR&ED
+
+Studios can claim OIDMTC and SR&ED credits in the same year, but *cannot claim the **same** labour expenditures under both programs.*
+
+Approach ideas:
+
+* Allocate experimental R&D work\[^1\] to SR&ED and regular game dev work to OIDMTC
+
+SR&ED provides a 35% refundable credit for CCPCs on the first $6 million in qualifyinf expenditures.
+
+Studios should also claim the Ontario Innovation Tax Credit (OITC), which provides an additional 10% refundable credit on SR&ED expenditures in Ontario
+
+Now includes capital expenditures - for equipment
+
+SR&ED credits are not considered "government assistance" that would reduce OIDMTC eligible expenditures
+
+#### NRC IRAP
+
+NRC IRAP provides non-repayable grants for innovative R&D *projects* with clear milestones (vs sr&ed which is for broader annual activities). You must be able to cover 20% of wage costs and 50% of contractor costs.
+
+You can claim IRAP on a subset of your work, then claim tax credits on everything
+
+**Important:** Requires pre-approval before project start. Cannot be claimed retroactively. Not all work qualififies. It needs to be "innovative" risky R&D. You really need to build trust with your assigned Industrial Technology Advisor.
+
+#### Canada Media Fund
+
+Experimental Stream:
+
+* Development funding: Up to $15,000
+* Production funding: Up to $250,000
+* Marketing funding: Up to $30,000
+
+Approach:
+
+
+1. Use CMF for production costs (voice acting, music licensing, marketing, equipment rental)
+2. Use OIDMTC/SR&ED for internal labour costs
+
+##### Eligibility
+
+* Canadian ownership, control, and key personnel
+* Innovative and experimental
+* Cultural or educational value
+* Public distribution – requires digital distributor
+* Provide very detailed project plan and budget
+
+#### Provincial grants
+
+##### Ontario Creates
+
+* Interactive Digital Media Fund (IDM Fund): Up to $250,000 for development/production
+* Market Development Programs: Travel, marketing, partnership support
+
+
+\
+##### Ontario Arts Council
+
+
+#### Toronto Arts Council
+
+#### Youth employment programs
+
+
+### Eligibility
+
+* For-profit cooperative corporations can likely claim it.
+  * legislation requires only "Canadian corporation" status without specifying incorporation type, ***though co-ops must ensure for-profit structure, employee treatment of worker-members (for the 25% employee test), and should seek professional confirmation given no explicit co-op guidance exists in the program.***
+
+## Functional cooperative legal framework
+
+* federal patronage dividend deductions
+
+## Dense GTA support ecosystem
+
+* Ontario Creates funding up to $300K
+* But EVERYTHING designed with standard corporations in mind
+  * Coops are not *excluded,* but they are never explicitly addressed. This creates ambiguity that studios need to resolve with program admins and tax/accountants.
+* \
+
+
+---
+
+
+## What (Ontario) coops should do
+
+* Coops should incorporate as *for-profit* under CCA if they want to take advantage of any of these opportunities.
+* Track EVERY expense carefully from the first day of development - start nOW!!
+* Put workers on payroll – must be *employees* not contractors to claim credits
+* Join the OCA and CWCF for development support and the Tenacity Works loan fund
+* Do Futures Forward training to unlock Ontario Creates (IF less than 3 years in IDM)
+* Begin claiming OIDMTC from the first eligible tax year
+* Carefully separate SR&ED-eligible experimental work
+* Get in touch with program admins at OC EARLYT to confirm eligibility before applying
+* \
+
+\[^1\]: Work must address technological uncertainty through systematic investigation