The CMF is a not-for-profit corporation that provides $352 million in funding annually to support the Canadian television and digital media industries.

One of the streams it provides funding through is “The Innovation Program”, which is designed to support Canadian interactive digital media content and software applications that are innovative and leading – edge.

Funding Type:                                            

Projects in the Innovation Program may apply for Prototyping, Production, or Marketing & Promotion support. Only projects which have received Production –stage CMF-support can apply for Marketing & Promotion support.

The CMF uses the following classification to evaluate innovation, in descending order:

  1. Revolution: “Never been done before, completely new, breakthrough, creates market turbulence.”
  2. Differentiation: “Paradigm shift for an existing product or service. Brings something existing to another level.”
  3. Improvement: “Adding significant components, or features, that bring new benefits to an existing product or service.”
  4. .Iteration: “Refining features, adding content to an existing product or service.”

Eligible Activities & Expenditures:

Must be costs directly related to the project, including but not limited to:

  • Research and preparation of the content
  • Salaries and benefits/wages/contracts for project teams (global project management, preparation, digitization, development of interpretive materials, editing and proofreading)
  • Technology infrastructure (hardware and software)
  • Expenses to put content online, including copyright clearance, documentation, design, and development of the prototype, translation costs
  • Travel and accommodations
  • Project audit fees
  • Other technical and administrative expenses
  • Marketing and promotion

Potential Funds:

A single eligible project may receive Prototyping, Production, and/or Marketing & Promotion support, either alone or in combination with each other, but will be capped at $1.2 million per single project.

Prototyping – Eligible costs for prototyping can be claimed at 75% up to a maximum of $250,000 as a repayable advance.

Production – Eligible costs for production can be claimed at 75% up to a maximum of $1 million as a recoupable investment.

Marketing and promotion – Eligible costs for marketing can be claimed at 75% up to a maximum of $400,000 as a repayable advance.

Who can apply?

1) A company that

  1. a)  Is for-profit;
  2. b) Is Canadian-controlled; and
  3. c) Has its head office based in Canada. 

2) A Canadian broadcaster licensed to operate by the Canadian Radio-television and Telecommunications Commission (CRTC).

Deadline:

FundingFirst Closing DateFinal Closing Date
Innovation Program: PrototypingMay 15, 2018November 6, 2018
Innovation Program: Marketing & PromotionMay 15, 2018November 6, 2018
Innovation Program: ProductionApril 26, 2018September 25, 2018

 

Canada Media Fund (CMF) – The Innovation Program

The Innovation Program, designed to support Canadian interactive digital media content and software applications that are innovative and leading – edge.

Projects in the Innovation Program may apply for Prototyping, Production, or Marketing & Promotion support. Only projects which have received Production –stage CMF-support can apply for Marketing & Promotion support.

The CMF uses the following classification to evaluate innovation, in descending order:

  1. Revolution: “Never been done before, completely new, breakthrough, creates market turbulence.”
  2. Differentiation: “Paradigm shift for an existing product or service. Brings something existing to another level.”
  3. Improvement: “Adding significant components, or features, that bring new benefits to an existing product or service.”
  4. Iteration: “Refining features, adding content to an existing product or service.”

Prototyping support should be for the early stages of building a product in order to demonstrate its intended functionalities and design. Specifically, this phase is for experimenting, testing and validating different concepts and hypotheses to arrive at a first functional prototype.

Funding for production should generally be for a project that is out of conceptual and prototyping phases and has a clear path to market and/or monetization. Production support is provided for the creation of a final, market-ready version of an eligible Project, including localization of the project and early marketing/commercialization activities.

Marketing & Promotion support is provided for marketing and promotion of an Eligible Project, such as the creation of national and international marketing campaigns, design costs, creation and market testing of advertising, use of the internet for promotion or transactions, promotion and publicity for launches or in international trade publications; localization of the project; and marketing specific initiatives.

Maximum Contribution

A single Innovation Program Eligible Project may receive Prototyping, Production, and/or Marketing & Promotion support, either alone or in combination with each other, but will be capped at $1.2 million per single project.

  • Prototyping – Eligible costs for prototyping can be claimed at 75% up to a maximum of $250,000.
  • Production – Eligible costs for production can be claimed at 75% up to a maximum of $1 million.

Marketing and promotion – Eligible costs for marketing can be claimed at 75% up to a maximum of $400,000.

Eligible Costs – must be costs directly related to the project, including but not limited to:

  • Research and preparation of the content
  • Salaries and benefits/wages/contracts for project teams (global project management, preparation, digitization, development of interpretive materials, editing and proofreading)
  • Technology infrastructure (hardware and software)
  • Expenses to put content online, including copyright clearance, documentation, design, and development of the prototype, translation costs
  • Travel and accommodations
  • Project audit fees
  • Other technical and administrative expenses
  • Marketing and promotion

Core business operations or capital expenditures of the applicants, such as rent, purchase of real estate, and maintenance costs, are not Eligible Costs.

ELIGIBLE APPLICANTS

An eligible Applicant to the CMF is either:

1) A company that

a) Is for-profit;

b) Is Canadian-controlled; and

c) Has its head office based in Canada.

2) A Canadian broadcaster, public or private, that is licensed to operate as such by the Canadian Radio-television and Telecommunications Commission (CRTC).

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

 

Definition:

Ontario Creates offers a wide variety of programs to provide financial support to Ontario’s cultural entrepreneurs within the interactive digital media industry.

Their funding allows producers of interactive content to create new products, access existing and new markets and grow their business.

Funding Type:

IDM (Interactive Digital Media) Fund: Production and Concept Definition – provide IDM content creators with funding for high quality, original interactive digital media content projects including production and concept definition activities.

Eligible Activities & Expenditures:

Production – activities that take a project from concept definition to market-ready content that will be released to end users on a digital media platform, network or device that is capable of interactivity.

Concept Definition – early-stage activities that will assist the applicant company in moving towards the production of a market-ready content project, this may include: prototype creation, preparation of pre-production documents and pitch material, business planning and research

Potential Funds:

Successful applicants are eligible to receive a non-refundable contribution capped at 50% of the project budget:

  • Production: maximum contribution: 250,000; minimum request: $25,000;
  • Concept Definition: maximum contribution:  $50,000; minimum request: $10,000;

Who can apply?

Established or new companies (with less than 1 year of operation or has not released a product) that:

  • have a permanent establishment in Ontario;
  • be a Canadian-owned organization;
  • be incorporated in Ontario or federally or prepared to incorporate immediately if their application is successful;
  • be in a sound financial position; and
  • be in good standing with Ontario Creates at time of application submission.

Deadline:

There are two rolling deadlines throughout the year. Applications can be submitted to Ontario Creates either April or August of each year electronically through their Online Application.  Please check our website regularly for updated information.

IDM (Interactive Digital Media) Fund: Production and Concept Definition

Ontario Creates has several other programs and resources to support small businesses in the cultural and interactive industries in Ontario. This includes:

IDM (Interactive Digital Media) Fund: Production and Concept Definition

  • Provide IDM content creators with funding for high quality, original interactive digital media content projects that make a positive contribution to the Ontario economy.
  • Production – activities that take a project from concept definition to market-ready content that will be released to end users on a digital media platform, network or device that is capable of interactivity.
  • Concept Definition – early-stage activities that will assist the applicant company in moving towards the production of a market-ready content project, this may include: prototype creation, preparation of pre-production documents and pitch material, business planning and research.
  • Successful applicants are eligible to receive a non-refundable contribution capped at 50% of the project budget.
  • Production: maximum contribution = $250,000
  • Concept Definition: maximum contribution = $50,000
  • New companies and first-time applicants are required to contact Ontario Creates in advance to determine their eligibility.
  • Established Companies that have:
    • at least 25% of their revenue over the last 2 years come from the creation of complete screen-based content projects; or
    • at least 50% of their expenditures over the last 2 years associated with the production of interactive digital media content; or
    • at least 50% of their revenue over the last 2 years come from eligible publishing activities and related brand extensions of the core business (i.e. trade shows, website, television properties).
    • They must also have at least 1 owner or full-time employee with at least 3 years of experience in the content creation for interactive platforms, networks or devices.
  • New companies (with less than 1 year of operation or has not released a product) that:
    • have an executive team with the experience and commitment required to deliver and commercialize the project;
    • have at least 1 owner or full-time employee with at least 3 years of professional experience in the publishing or interactive digital media content production industries;
    • are at least 51%-owned by individuals that have recent Ontario work experience;
    • are prepared to incorporate immediately (if not already incorporated) if their application is successful;
  • All companies must:
    • have a permanent establishment in Ontario;
    • be a Canadian-owned organization;
    • be incorporated in Ontario or federally or prepared to incorporate immediately if their application is successful;
    • be in a sound financial position; and
    • be in good standing with Ontario Creates at time of application submission.
  • In addition, applications should be submitted by the primary corporate entity and not the single purpose production company.

 IDM Fund: Global Market Development

  • provides eligible Ontario companies with funding to participate in international activities that support company growth and produce measurable business and market development results including targeted sales trips and attendance at international market events
  • Successful applicants are eligible to receive up to $15,000 capped at 50% of the total costs for all activities.

IDM Fund: Marketing Support

  • Provides funding for marketing activities for IDM Production fund recipients. The marketing support program allows recipients to build an effective, wide-ranging, and successful marketing campaigns for newly released products.
  • Eligible to receive up to $50,000, capped at 75% of the total costs for all activities. The minimum Ontario Creates contribution is $15,000. Companies that can apply for an increased maximum on a case-by-case basis

 IDM Fund: Industry Development Program

  • Provides support to Ontario’s established trade and event organizations to offer initiatives, events and activities with long-term impacts on growth and sustainability in the book, magazine, film, television, and interactive digital media sectors.
  • There are two program streams, Business Development, and Capacity Building.
  • Business Development – support to organizations for business to business (B2B) industry activities and business to consumer (B2C) audience development activities that offer opportunities for new business leads, sales, and relationships.
  • Capacity Building – support for strategic activities that address challenges and opportunities or environmental changes that contribute to either the capacity of the applicant or its stakeholder group.
  • Funding capped at 75% of the approved budget. Contributions will generally range from $5,000 to $60,000.

Note: The IDM Funds essentially support producers of interactive content throughout the entire lifecycle of their project: from concept definition to production, to marketing, to promotion including lead generation and capacity expansion. The funds also support the industry development and global expansion.

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

OIDMTC:

Ontario Creates provides a tax incentive to companies in Ontario for developing and marketing interactive digital media products. Types of interactive digital media products include, but are not restricted to, digital games, mobile applications, and e-learning products for children.

Funding Type:

Two funding streams are available under the OIDMTC tax credit program:

  • Non-specified product – A 40% refundable tax credit for products developed in-house
  • All Other – The credit is 35% refundable tax credit for companies that develop under a fee-for-service arrangement or large digital game corporations that develop digital games.

Eligible Activities & Expenditures:

Labor expenditures and marketing and distribution expenditures (for non-specified products only; capped at $100,000 per product). Eligible labor expenditures include salaries and wages for employees and contract fees.

Definition of Interactive Digital Media for OIDMTC purposes:

A product must be an interactive digital media product whose primary purpose is to entertain users or educate children under 12 and presents information in at least two of:

(i) text, (ii) sound and (iii) images.

Who can apply?

Any Canadian corporation, which develops an eligible product at a permanent establishment in Ontario operated by it, and files an Ontario tax return.

Deadline:

Within 18 months after the company’s year-end in which the development of the product was completed.

What Is It?

The refundable tax credit based on eligible Ontario labour expenditures and eligible marketing and distribution expenses for interactive digital media products.

How much is the Tax Credit?

A 40% tax credit is available for eligible Ontario labour expenditures and eligible marketing and distribution expenses for companies that develop and market their own products.

The credit is 35% on eligible Ontario labour expenditures for products developed under a fee-for-service arrangement.

A 35% credit on eligible labour expenditures is also available to digital game corporations and specialized digital game. Eligible marketing and distribution expenses are capped at $100,000 per non-specified product.

What Types of Products Are Eligible for the Tax Credit?

There are four types of products that can be claimed: non-specified products, specified products, eligible digital games developed by a qualifying digital game corporation, and eligible digital games developed by a specialized digital game corporation. Types of interactive digital media products that may be eligible include: digital games, mobile applications, and e-learning products for children.

What Expenditures Are Eligible?

Labour expenditures and marketing and distribution expenditures (for non-specified products only). Eligible labour expenditures include salaries and wages for employees and contract fees.

Eligible Labour expenditures must also be paid to individuals resident in Ontario, directly attributable to the development of the eligible product, and paid for services rendered at a permanent establishment in Ontario. Eligible labour expenditures incurred up to 3 years before the completion of the product can be included in the OIDMTC claim.

Up to $100,000 of eligible marketing and distribution expenditures related to a non-specified (developed in-house) product can be included. Eligible marketing and distribution expenses up to 24 months prior to the completion of the eligible interactive digital media product, and those incurred 12 months after the completion of the product can be claimed.

Marketing and distribution costs cannot be claimed for specified products or for games developed by qualifying digital game corporations or specialized digital game corporations.

Other Interactive Digital Media Tax Credits in various provinces in Canada:

Tax Credit

Eligibility Requirements

Ontario Interactive Digital Media Tax Credit

40% of eligible labour costs and a maximum of $100,000 in marketing/distribution expenditures

For the purposes of OIDMTC, the IDM product will feature the primary purpose to educate, inform or entertain through the use of at least two of i) text, ii) image and iii) sound. The IDM product must be user-controlled and not be developed primarily for interpersonal communication. Eligible products include mobile applications, video games, and educational software, among many others.
Ontario Computer Animation and Special Effects Tax Credit

18% of total labour costs

OCASE is a refundable tax credit administered by Ontario Creates based on eligible expenses incurred with respect to computer animation and special effects activities. Eligible companies may include animation or visual effects houses, post-production houses and film and television production companies.
Quebec Computer Animation and Special Effects Tax Credit

16% of eligible labour and production costs

Must be eligible for Quebec Film and Television Production Tax Credit or Quebec Production Services Tax Credit. Must perform computer animation and special effects or shoot in front of a chromatic screen.
Quebec Multimedia Production Tax Credit

Up to 37.5% of eligible labour costs.

The company must be established in Quebec. Titles must be published electronically, using software that supports interactivity, and substantially contains three of the four types of information: text, sound, still images and animated images. (Video images are considered as only one media component.)

Digital animation films associated with an eligible multimedia title are also eligible. However, the labour expenditure related to the main multimedia title with which the related title is associated must be at least $1M.

BC Interactive Digital Media Tax Credit

17.5% of eligible labour costs

The company must be established in British Columbia.

Wages/salaries for the year must exceed $100,000. Interactive digital media must educate, inform or entertain through at least two of the three types of information: text, sound, or images.

BC Digital Animation or Visual Effects Tax Credit

16% of eligible labour costs

The company must be established in British Columbia. Part of the British Columbia Film and Television Tax Credit and can only be claimed in conjunction with the “basic tax credit” of the Film and Television credit.
Manitoba Interactive Digital Media Tax Credit

40% of eligible labour costs up to a maximum of $500,000

The Manitoba IDMTC is a refundable tax credit offered to companies developing and producing interactive digital media products in Manitoba. The product must be approved by the Department of Growth Enterprise and Trade.
New Brunswick Digital Media Development Program

30% of eligible labour costs up to a maximum of $500,000

The company must be established in New Brunswick. Must develop game engines or games with entertainment/serious gaming applications. Annual gross revenues cannot exceed $20M and total assets cannot exceed $10M during the preceding taxation year. Cannot just be in the research stage, must be in advanced development.
Nova Scotia Digital Media Tax Credit

50% of eligible labour costs or 25% of total expenditures with the additional regional bonus of 10% of eligible labour expenditures or 5% of total expenditures.

Nova Scotia’s DMTC is a refundable tax credit for the development of an interactive digital media product. Like the OIDMTC, the interactive digital media product must have the primary purpose to educate, inform or entertain, and presents information in at least two of the forms text, sound, and image.
PEI Innovation and Development Labour Rebate

25% of eligible labour costs

PEI’s Video Game Labour Rebate provides a rebate to game studios producing video game titles based on eligible labour costs. The PEI Game Plan program offers quarterly payments of the rebate based on actual payroll records to enable cash-flow during the game development cycle.

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

 

Program Overview:

The Strategic Innovation Fund (SIF) is a program that was launched in 2017. It provides repayable and non-repayable contributions to support four distinct Streams of activities:

Stream 1: Encourage research and development (R&D) that will accelerate technology transfer and commercialization of innovative products, processes, and services;

Stream 2: Facilitate the growth and expansion of firms in Canada;

Stream 3: Attract and retain large-scale investments in Canada; and

Stream 4: Advance industrial research, development, and technology demonstration through collaboration between academia, non-profit organizations, and the private sector.

Who Qualifies:

The Strategic Innovation Fund focuses its support on larger projects that are over $10 million in requested contribution.

Streams 1, 2 and 3:

The Applicant must be a for-profit corporation—small, medium or large-sized—proposing to carry on business in Canada in the industrial and/or technology sectors. You can receive up to 50% of total eligible costs or a requested contribution starting at $10 million in funding.

Stream 4:

Applicants are a consortium that may include Canadian universities, colleges, research institutes, for-profit corporations (including SMEs) and/or not-for-profit entities operating in the industrial and/or technology sectors. You can receive up to 50% of total eligible costs.

Networks in the industrial and/or technology sectors are also eligible for this stream and can receive up to 100% of eligible costs. Stream 4 contributions are all non-repayable and you can receive a contribution starting at $10 million in funding.

Eligible Projects:

Each Stream has its own criteria as to what is an eligible project.

Stream 1—R&D and Commercialization

The project must involve activities related to the research, development, and commercialization of innovative products, processes and/or services. For example, projects could focus on:

  • R&D to test the commercial potential of an early TRL concept or finding;
  • Development of current products through the implementation of new technology that will enhance the Recipient’s competitive capability

Stream 2—Firm Expansion and Growth

The project must support the expansion or material improvement of existing industrial or technological facilities, or projects. For example, projects could focus on:

  • Increasing manufacturing capacity to meet demonstrated market demand;
  • Improving production efficiency through improvements to plant and equipment; or
  • Improving processes to increase efficiency

Stream 3—Investment Attraction and Reinvestment

The project must support new investment in industrial or technological facilities in Canada. For example, projects could focus on:

  • A Canadian company establishing a new production facility which did not previously exist in Canada;
  • Obtaining a production mandate for a product which was previously produced outside Canada or is being produced for the first time

Stream 4—Collaborative Technology Development and Demonstration

The project must support industrial research, including activities related to the discovery of new knowledge that aims to support the development of new technology-driven products, processes or services at early-stage technology readiness levels;

  • Development by a lead Tier 1 original equipment manufacturer company of a potential new product utilizing academic research findingsconjunction with SME suppliers and research councils

Further stream specific information can be obtained through EVAMAX GROUP, get a FREE consultation.

Eligible Costs:

Eligible costs are limited to non-recurring costs that are specifically related to the project, this includes:

  • direct labour
  • overhead (program limits apply)
  • subcontracts and consultants
  • direct materials and equipment
  • other direct costs
  • land and buildings

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

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