OIDMTC: Ontario’s 40% and 35% refundable credit for digital media
Building interactive digital media products, from digital games to educational content for children, means paying a development team for a long time before the product earns anything. The Ontario Interactive Digital Media Tax Credit (OIDMTC) returns part of that cost through a refundable tax credit based on eligible Ontario labour.
The credit is 40% for your own products and 35% for fee-for-service work and eligible digital games under the digital game corporation rules. The program is open, with no fixed annual deadline.
What is OIDMTC?
The OIDMTC is an Ontario refundable tax credit for qualifying corporations that develop eligible interactive digital media products. It is jointly administered by Ontario Creates and the CRA.
The credit is based on eligible Ontario labour. For non-specified products, meaning products your company develops as its own, it also covers marketing and distribution expenditures.
OIDMTC at a glance
| Detail | Ontario Interactive Digital Media Tax Credit (OIDMTC) |
|---|---|
| Funding amount | $50K – $2M |
| Program type | Tax Credit |
| Level | Provincial |
| Where it applies | Ontario (ON) |
| Status | Open |
| Deadline | No fixed annual deadline — apply to Ontario Creates for a Certificate of Eligibility, then file with your CRA tax return. Eligible labour incurred up to 3 years prior to product completion and marketing/distribution costs incurred within a defined 24-month pre- and 12-month post-completion window can be included. |
| What it funds | R&D / Proof of Concept, Prototype / Product Development, Product Demonstration / Pilot |
| Industries | Digital Media & Entertainment, Software & IT |
| Company stage | Startup, Growth, Expansion, Established |
| Payment model | Tax Offset |
| Matching funds required | No |
| Competition level | Low |
How much funding is available?
The credit rate depends on the type of product and how your company is set up. Non-specified (own) products earn 40%, while specified (fee-for-service) products and eligible digital games under the qualifying and specialized digital game corporation rules earn 35%.
There is no cap on eligible labour. Marketing and distribution expenses can only be claimed for non-specified products and are capped at $100,000 per product. Funding under the program ranges from $50,000 to $2,000,000.
- Non-specified (own) products: 40% of eligible Ontario labour and marketing/distribution expenditures.
- Specified (fee-for-service) products: 35% of eligible Ontario labour.
- Qualifying and specialized digital game corporations: 35% on eligible digital games.
- Labour: no cap on eligible labour.
- Marketing and distribution: non-specified products only, capped at $100,000 per product.
Who is eligible?
The corporation
- A Canadian corporation, whether Canadian or foreign-controlled, with a permanent establishment in Ontario that files an Ontario tax return.
- Labour-sponsored venture capital corporations are ineligible.
- Tax-exempt corporations, and corporations controlled by tax-exempt corporations, are ineligible.
The product
- The product must primarily entertain users or educate children under 12.
- It must present content using at least two of text, sound and images.
- Most websites are excluded unless they primarily host digital games, film/TV/internet production content, VR/AR experiences, or content for children under 12.
- Excluded product types: news/current events, opinion/advice, reference materials, databases, search engines, blogs, aggregators, promotional products, and industrial/corporate training tools.
Labour and digital game corporation rules
- 80/25 rule: 80% of total development labour costs must be paid to Ontario residents (employees, personal corporations, or sole proprietors with no employees), and 25% must be wages to your company's own employees.
- Eligible labour expenditures are limited to work performed in Ontario by Ontario residents and directly attributable to product development.
- Qualifying digital game corporations: a minimum of $1M in eligible Ontario labour over 3 years on fee-for-service digital game work. These corporations are exempt from the 80/25 rule and the arm's-length and completion requirements, and earn the 35% rate.
- Specialized digital game corporations: a minimum of $1M in Ontario labour in the year, plus 80% of payroll or 90% of revenue from digital game development. These corporations are exempt from the 80/25 rule, can file annually, and earn the 35% rate.
When and how to apply
The OIDMTC is open and has no fixed annual deadline. Your company first applies to Ontario Creates for a Certificate of Eligibility, then files the claim with its CRA tax return.
Eligible labour incurred up to 3 years before the product is completed can be included. Marketing and distribution costs can be included when they fall within a defined window of 24 months before and 12 months after completion.
The status of Ontario Interactive Digital Media Tax Credit (OIDMTC) in EVAMAX Grant AI™ is currently Open. Grant AI™ re-checks it against the official program page, so look there for the latest before you start an application.
Is OIDMTC right for you?
The OIDMTC suits Ontario corporations that develop interactive digital media products with Ontario-resident teams, from startups to established studios. Check that your product is not an excluded type, such as a general website, database or corporate training tool, and track where your labour is paid, since the 80/25 rule applies unless your company qualifies as a qualifying or specialized digital game corporation. Marketing and distribution costs only count for your own products and are capped at $100,000 per product.
Next steps: look up Ontario Interactive Digital Media Tax Credit (OIDMTC) in EVAMAX Grant AI™ to see its live status and other programs that fit your company, or talk to EVAMAX about building your application.
Program details are from the EVAMAX Grant AI™ record as of October 8, 2026. Programs change — confirm current terms on the official program page before you apply.