93 (1) A corporation that complies with the requirements of this section or section 93.1 or 93.2 may claim an amount for the year in respect of and not exceeding the corporation’s Ontario interactive digital media tax credit for the year.  2009, c. 34, Sched. U, s. 18 (1). Total amount of tax credit under this section and ss. 93.1 and 93.2 (1.1) The amount of a corporation’s Ontario interactive digital media tax credit for a taxation year is the sum of the credits determined under this section and sections 93.1 and 93.2 for the year.  2009, c. 34, Sched. U, s. 18 (1). Amount of tax credit under this section (2) Subject to subsections (2.4) to (2.6), the amount of a qualifying corporation’s credit under this section for a taxation year is the sum of the corporation’s eligible credits for the year as determined under this section in respect of eligible products.  2009, c. 34, Sched. U, s. 18 (1). Non-specified products, other than qualifying small corporations (2.1) A qualifying corporation’s eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is not a qualifying small corporation, the sum of, (a) 20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008; (b) 25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and (c) 40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.  2009, c. 34, Sched. U, s. 18 (1). Non-specified products, qualifying small corporations (2.2) A qualifying corporation’s eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is a qualifying small corporation, the sum of, (a) 20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred before March 24, 2006; (b) 30 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 27, 2009; and (c) 40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.  2009, c. 34, Sched. U, s. 18 (1). Specified products (2.3) A qualifying corporation’s eligible credit for a taxation year in respect of an eligible product that is a specified product is the sum of, (a) 20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008; (b) 25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and (c) 35 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.  2009, c. 34, Sched. U, s. 18 (1). Claims not allowed under subs. (2.3) and s. 93.1 (2.4) A qualifying corporation’s eligible credit under subsection (2.3) in respect of an eligible product is deemed to be nil for a particular taxation year if the corporation claims a credit under section 93.1 in respect of the eligible product for the year or any previous taxation year.  2009, c. 34, Sched. U, s. 18 (1). Claims not allowed under this section and s. 93.2 (2.5) Subject to subsection (2.6), a qualifying corporation’s credit under this section in respect of an eligible product for a particular taxation year is deemed to be nil if the corporation claims a credit under section 93.2 in respect of the eligible product for the year.  2009, c. 34, Sched. U, s. 18 (1). Exception, transition to s. 93.2 (2.6) Subsection (2.5) does not apply in respect of a qualifying corporation for a particular taxation year if the corporation completes an eligible product in the year and the Ontario labour expenditure incurred in respect of the product includes expenditures that were incurred before the later of March 27, 2009 and the beginning of the first taxation year in which the corporation claimed a credit under section 93.2.  2009, c. 34, Sched. U, s. 18 (1). Qualifying expenditure (3) The qualifying expenditure of a qualifying corporation for a taxation year is, (a) in respect of an eligible product that is not a specified product, the amount of its eligible labour expenditure and eligible marketing and distribution expenditure for the year in respect of the product; and (b) in respect of an eligible product that is a specified product, the amount of its eligible labour expenditure for the year in respect of the product.  2009, c. 34, Sched. U, s. 18 (1). Eligible labour expenditure (4) A qualifying corporation’s eligible labour expenditure for an eligible product for a taxation year is equal to the amount, if any, by which the sum of “A” and “B” exceeds “C” where, “A” is the Ontario labour expenditure, if any, incurred by the qualifying corporation in the year for the eligible product, “B” is the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible product by the qualifying corporation in a previous taxation year or by a qualifying predecessor corporation before the disposition, merger or wind-up, as the case may be, to the extent that, (a) if development of the product is completed before March 26, 2008, the expenditure is incurred in the 25-month period ending at the end of the month in which development of the eligible product is completed, (b) if development of the product is completed after March 25, 2008 and before March 15, 2020, the expenditure is incurred in the 37-month period ending at the end of the month in which the development of the eligible product is completed, (c) if development of the product is completed after March 14, 2020 and if an Ontario labour expenditure for the product was incurred by the qualifying corporation or a qualifying predecessor corporation in 2020, the expenditure is incurred in the 61-month period ending at the end of the month in which development of the eligible product is completed, or (d) if development of the product is completed after March 14, 2020 and if an Ontario labour expenditure for the product was not incurred by the qualifying corporation or a qualifying predecessor corporation in 2020, the expenditure is incurred in the 37-month period ending at the end of the month in which development of the eligible product is completed, and “C” is the sum of “D”, “E” and “F” where, “D” is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a tax credit claimed under this section, section 93.2 or section 43.11 of the Corporations Tax Act for a previous taxation year by the qualifying corporation or by a qualifying predecessor corporation, “E” is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying corporation, and “F” is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible product that, on the qualifying corporation’s filing-due date for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been included in determining a corporation’s eligible labour expenditures under section 93.2 or been repaid under a legal obligation to do so.  2009, c. 34, Sched. U, s. 18 (1); 2020, c. 36, Sched. 43, s. 5. Who claims amount in respect of specified product (5) For the purposes of subsection (4), if a qualifying corporation develops a specified product under a contract entered into after March 23, 2006, only the qualifying corporation is entitled to claim an amount under this section in respect of the specified product.  2007, c. 11, Sched. A, s. 93 (5). Eligible marketing and distribution expenditure (6) The eligible marketing and distribution expenditure of a qualifying corporation for an eligible product for a taxation year is the amount that is the lesser of, (a) the amount, if any, by which $100,000 exceeds the total of all amounts, if any, each of which is the corporation’s eligible marketing and distribution expenditure for the eligible product or a qualifying predecessor corporation’s eligible marketing and distribution expenditure incurred for the eligible product before the disposition, merger or wind-up, as the case may be, that was included in the determination of the corporation’s tax credit under this section or section 43.11 of the Corporations Tax Act for a previous taxation year; and (b) the amount determined under subsection (7).  2007, c. 11, Sched. A, s. 93 (6). Same (7) The amount determined under this subsection for the purposes of clause (6) (b) is calculated using the formula, F – (G + H + I) in which, “F” is the total of all amounts, if any, each of which is a marketing and distribution expenditure in respect of the eligible product incurred by the qualifying corporation in the taxation year or in a previous taxation year or by a qualifying predecessor corporation before the disposition, merger or wind-up, as the case may be, to the extent that it was incurred, (a) in the month in which development of the eligible product is completed, and (b) in the period of 24 months before, or in the period of 12 months after, the month in which development of the eligible product is completed, “G” is the total amount of all government assistance, if any, for the marketing and distribution expenditures described in the definition of “F” for the eligible product that, on the corporation’s filing-due date for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been repaid under a legal obligation to do so, “H” is the total of all amounts, if any, each of which is an eligible marketing and distribution expenditure for the eligible product that was included in the determination of a tax credit claimed under this section or section 43.11 of the Corporations Tax Act
for a previous taxation year by the qualifying corporation or by a qualifying predecessor corporation, and “I” is the total of all marketing and distribution expenditures described in the definition of “F” for the eligible product that are Ontario labour expenditures of the qualifying corporation or a qualifying predecessor corporation. 2007, c. 11, Sched. A, s. 93 (7). Application for certificate (8) In order to be eligible to claim an amount in respect of an Ontario interactive digital media tax credit under this section for a taxation year, a qualifying corporation shall apply to the Ontario Media Development Corporation or a person designated by the Minister of Culture for certification of its eligible products for the purposes of this section.  2007, c. 11, Sched. A, s. 93 (8). Time for application (8.1) No amount may be claimed under this section in respect of an eligible product unless an application for certification under subsection (8) is made in respect of the eligible product on or before the later of, (a) the day that is 18 months after the end of the taxation year of the corporation in which the development of the eligible product is completed; and (b) the day that is six months after November 14, 2016. 2016, c. 37, Sched. 25, s. 3. Same (9) A qualifying corporation that applies for certification shall provide the information specified for the purposes of this section by the Ontario Media Development Corporation or a person designated by the Minister of Culture to the person who specified that it be provided.  2007, c. 11, Sched. A, s. 93 (9). Certificate (10) If a qualifying corporation provides the information in accordance with subsection (9) in respect of its eligible products for a taxation year, the Ontario Media Development Corporation or a person designated by the Minister of Culture shall issue a certificate, and any amended certificates it considers appropriate, to the qualifying corporation with respect to its eligible products for the year, certifying in respect of each eligible product, (a) that the product is an eligible product for the purposes of this section; and (b) the estimated amount of the corporation’s tax credit under this section applicable to the product.  2007, c. 11, Sched. A, s. 93 (10). Certificate to be delivered with return (11) In order to claim an amount under this section for a taxation year, a qualifying corporation must deliver to the Ontario Minister with its return for the year the certificate for the year that is most recently issued under subsection (10), or a certified copy of the certificate.  2007, c. 11, Sched. A, s. 93 (11). Revocation of certificate (12) A certificate or amended certificate issued under subsection (10) may be revoked, (a) if an omission or incorrect statement was made and it is reasonable to believe that, if the omitted information had been disclosed or if the person issuing the certificate had known that the statement was incorrect, he or she would not have issued the certificate; (b) if none of the products in respect of which the certificate is issued is an eligible product; (c) if the corporation to which the certificate is issued is not a qualifying corporation; or (d) if, in determining the amount of its tax credit under this section for a taxation year, the corporation claims another corporation as a qualifying predecessor corporation in respect of an eligible product and the other corporation is not a qualifying predecessor corporation of the corporation before the eligible product becomes the property of or is disposed of to the corporation.  2007, c. 11, Sched. A, s. 93 (12). Same (13) A certificate that is revoked is deemed never to have been issued.  2007, c. 11, Sched. A, s. 93 (13). Definitions (14) In this section, “eligible product” means, in respect of a qualifying corporation, a product, (a) that satisfies the prescribed conditions or that is a specified product, and (b) for which public financial support would not be contrary to public policy in the opinion of the Ontario Media Development Corporation or, if another person is designated for the purposes of subsection (8), in the opinion of that person; (“produit admissible”) “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including a tax credit under this section or section 43.11 of the Corporations Tax Act; (“aide gouvernementale”) “marketing and distribution expenditure” means the amount determined under the prescribed rules; (“dépense de commercialisation et de distribution”) “Ontario labour expenditure” means the amount determined under the prescribed rules; (“dépense de main-d’oeuvre en Ontario”) “qualifying corporation” means a Canadian corporation, (a) that satisfies one of the conditions set out in subsection (16), (b) that is not controlled directly or indirectly in any manner whatever by one or more corporations all or part of whose taxable income is exempt from tax under section 57 of the Corporations Tax Act or Part III of this Act, and (c) that is not a prescribed labour-sponsored venture capital corporation under the Federal regulations; (“société admissible”) “qualifying predecessor corporation” means, in respect of a qualifying corporation (the “transferee”), a corporation that was a qualifying corporation in respect of an eligible product and that, (a) disposes of the eligible product to the transferee in accordance with subsection 85 (1) of the Federal Act if, at the time of the disposition, (i) the corporation owns all of the issued and outstanding shares of the transferee, (ii) the transferee owns all of the issued and outstanding shares of the corporation, or (iii) all of the issued and outstanding shares of the corporation and the transferee are directly or indirectly owned by the same person, (b) merges with one or more corporations in accordance with section 87 of the Federal Act to form the transferee, or (c) is wound up in accordance with subsection 88 (1) of the Federal Act; (“société remplacée admissible”) “qualifying small corporation”, in respect of a taxation year, means a qualifying corporation where, (a) the amount of the corporation’s total assets at the end of the year is equal to or less than $10 million and the amount of the corporation’s total revenue for the year is equal to or less than $20 million; or (b) the corporation is associated with one or more corporations during the year and, (i) the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation’s last taxation year ending in the corporation’s taxation year is equal to or less than $10 million, and (ii) the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation’s taxation year is equal to or less than $20 million. (“petite société admissible”)  2007, c. 11, Sched. A, s. 93 (14); 2009, c. 34, Sched. U, s. 18 (2); 2010, c. 1, Sched. 29, s. 9; 2012, c. 8, Sched. 56, s. 2. Completion of embedded product (14.1) The development of a product that is capable of being operated as an independent website but that is not operated as an independent website is considered to be completed for the purpose of this section only if, (a) as of November 1, 2017, neither a certificate of eligibility had been issued in respect of the product to a qualifying corporation under subsection (10) nor a letter sent to a qualifying corporation indicating that the product does not qualify for certification; (b) the product hosts content related to a film, television or internet production; and (c) the product has been licensed or purchased by a corporation that holds a licence to carry on a broadcasting undertaking issued by the Canadian Radio-television and Telecommunications Commission under the Broadcasting Act (Canada), and the product has been embedded into a website of such a broadcaster. 2018, c. 8, Sched. 32, s. 3. Specified product (15) A product developed by a qualifying corporation is a specified product for the purposes of this section if the following conditions are satisfied: 1. The product satisfies the prescribed conditions. 2. The product is developed by the qualifying corporation under the terms of an agreement between the qualifying corporation and a purchaser that is a corporation that deals at arm’s length with the qualifying corporation. 3. The product is developed under the agreement for the purpose of sale or license by the purchaser to one or more persons, each of whom deals at arm’s length with the purchaser. 4. If, before April 24, 2015, the Ontario Media Development Corporation issued a certificate under subsection (10) to the qualifying corporation in respect of the product, or sent a letter to notify the qualifying corporation that the product does not qualify for certification, all or substantially all of the product is developed in Ontario by the qualifying corporation. 5. The development of the product is completed by the qualifying corporation after March 23, 2006.  2007, c. 11, Sched. A, s. 93 (15); 2015, c. 38, Sched. 20, s. 2; 2023, c. 21, Sched. 13, s. 4. Conditions for qualifying corporations (16) The following are the conditions referred to in clause (a) of the definition of “qualifying corporation” in subsection (14): 1. The corporation commences development of an eligible product at a permanent establishment in Ontario operated by the corporation, but does not complete development of the product before it is transferred to or otherwise becomes the property of another corporation in circumstances described in clause (a), (b) or (c) of the definition of “qualifying predecessor corporation” in subsection (14). 2. The corporation completes, at a permanent establishment in Ontario operated by the corporation, the development of an eligible product received from a qualifying predecessor corporation. 3. The corporation develops an eligible product at a permanent establishment in Ontario operated by the corporation.  2007, c. 11, Sched. A, s. 93 (16). Ceasing to be a qualifying corporation (17) Despite paragraph 1 of subsection (16), a qualifying predecessor corporation ceases to be a qualifying corporation with respect to an eligible product immediately after the eligible product becomes the property of or has been disposed of to the other corporation.  2007, c. 11, Sched. A, s. 93 (17). Amalgamations (18) Despite the definition of “qualifying small corporation” in subsection (14), a corporation formed as a result of an amalgamation of two or more predecessor corporations is not a qualifying small corporation for the taxation year commencing at the time of the amalgamation unless each predecessor corporation would be considered, but for this subsection, to be a qualifying small corporation for its last taxation year ending immediately before the amalgamation and, for the purposes of this subsection, each predecessor corporation is deemed to have been associated with every other predecessor corporation during the taxation year ending immediately before the amalgamation.  2007, c. 11, Sched. A, s. 93 (18). Application of s. 55 (2) (19) Paragraphs 1 to 6 of subsection 55 (2) apply for the purposes of determining if a qualifying corporation is a qualifying small corporation for the purposes of this section.  2009, c. 34, Sched. U, s. 18 (3). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 24 (1-4) - 26/03/2008 2009, c. 34, Sched. U, s. 18 (1-3) - 27/03/2009 2010, c. 1, Sched. 29, s. 9 - 27/03/2009 2012, c. 8, Sched. 56, s. 2 - 20/06/2012 2015, c. 38, Sched. 20, s. 2 - 24/04/2015 2016, c. 37, Sched. 25, s. 3 - 08/12/2016 2018, c. 8, Sched. 32, s. 3 - 08/05/2018 2020, c. 36, Sched. 43, s. 5 - 08/12/2020 2023, c. 21, Sched. 13, s. 4 - 04/12/2023