93.1 (1) The amount of a qualifying digital game corporation’s tax credit under this section for a taxation year for the purposes of subsection 93 (1.1) is the total of all amounts each of which is the corporation’s eligible credit for the year in respect of an eligible digital game.  2009, c. 34, Sched. U, s. 19. Eligible credit, eligible digital games (2) A qualifying digital game corporation’s eligible credit for a taxation year in respect of an eligible digital game is 35 per cent of its qualifying labour expenditure in respect of the digital game for the year that relates to expenditures incurred after March 26, 2009.  2009, c. 34, Sched. U, s. 19. Claims not allowed under s. 93 (2.3) and this section (3) A qualifying digital game corporation’s eligible credit under subsection (2) in respect of an eligible digital game is deemed to be nil for a particular taxation year if the corporation claims a credit under subsection 93 (2.3) in respect of the digital game for any previous taxation year.  2009, c. 34, Sched. U, s. 19; 2010, c. 1, Sched. 29, s. 10 (1). Claims not allowed under this section and s. 93.2 (4) Subject to subsection (5), a qualifying digital game corporation cannot claim a credit under this section for a particular taxation year in respect of an eligible digital game if the corporation has claimed a credit under section 93.2 in respect of the digital game for the year.  2009, c. 34, Sched. U, s. 19. Exception, transition to s. 93.2 (5) Subsection (4) does not apply if a qualifying digital game corporation claims a credit under section 93.2 in a taxation year, the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9) ends in the year and the Ontario labour expenditure incurred in respect of the digital game 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. 19; 2010, c. 1, Sched. 29, s. 10 (2). Qualifying labour expenditure (6) The qualifying labour expenditure of a qualifying digital game corporation in respect of an eligible digital game 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 digital game corporation in the year for the eligible digital game, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9), “B” is the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible digital game by the qualifying digital game corporation in a previous taxation year or by a qualifying predecessor corporation before the merger or wind-up, as the case may be, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9), 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 digital game that was included in the determination of the amount of a tax credit claimed under section 93.2 for a previous taxation year by the qualifying digital game corporation, determined in accordance with the rules prescribed by regulation in respect of a digital game that is an eligible digital game for the purposes of section 93.2, “E” is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible digital game that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying digital game corporation, and “F” is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible digital game that, on the qualifying digital game corporation’s filing-due date for the taxation year, the qualifying digital game 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 repaid under a legal obligation to do so.  2009, c. 34, Sched. U, s. 19. Application for certificate (7) Subsections 93 (8) and (9) to (13) apply for the purposes of this section, subject to any prescribed modifications, as if, (a) each reference in those provisions to “this section” were read as a reference to this section; (b) each reference in those provisions to a “qualifying corporation” were read as a reference to a “qualifying digital game corporation”; and (c) each reference in those provisions to an “eligible product” were read as a reference to an “eligible digital game”.  2009, c. 34, Sched. U, s. 19; 2016, c. 37, Sched. 25, s. 4. Definitions (8) In this section, “eligible digital game” means a product in respect of a qualifying digital game corporation that satisfies all of the conditions set out in subsection (9); (“jeu numérique 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 subsection 93 (1); (“aide gouvernementale”) “Ontario labour expenditure” means the amount determined under the prescribed rules; (“dépense de main-d’oeuvre en Ontario”) “qualifying digital game corporation” means a Canadian corporation, (a) that carries on through a permanent establishment in Ontario a business that includes the development of digital games, (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 Part III of this Act, (c) that is not a prescribed labour-sponsored venture capital corporation under the Federal regulations, and (d) that is not a taxable Canadian corporation the primary activity of which is to provide the services of a single individual and all the issued and outstanding shares of the capital stock of which (other than directors’ qualifying shares) are owned by that individual; (“société de jeux numériques admissible”) “qualifying predecessor corporation” means, in respect of a qualifying digital game corporation (the “transferee”), a corporation that was a qualifying digital game corporation in respect of an eligible digital game and that, (a) merges with one or more corporations in accordance with section 87 of the Federal Act to form the transferee, or (b) is wound up in accordance with subsection 88 (1) of the Federal Act. (“société remplacée admissible”)  2009, c. 34, Sched. U, s. 19; 2010, c. 1, Sched. 29, s. 10 (3); 2012, c. 8, Sched. 56, s. 3. Eligible digital game (9) The following are the conditions referred to in the definition of “eligible digital game” in subsection (8): 1. The product is an interactive digital media product as determined under the prescribed rules. 2. The product is a digital game in the opinion of the Ontario Media Development Corporation or, if another person is designated by the Minister of Culture, in the opinion of that person. 3. The product is developed in whole or in part by the qualifying digital game corporation under the terms of an agreement between the qualifying digital game corporation and a purchaser that is a corporation. 4. The product is developed 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. 5. The qualifying labour expenditure incurred by the qualifying digital game corporation within any period of 36 months that ends in the taxation year is not less than $1,000,000. 6. The qualifying digital game corporation or a qualifying predecessor corporation has not previously claimed a tax credit under this section in respect of the eligible digital game. 7. The product is not used primarily, i. for interpersonal communication, ii. to present or promote the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser, or iii. to present, promote or sell the products or services of the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser. 8. The product is one 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 93 (8), as it applies for the purposes of this section, in the opinion of that person.  2009, c. 34, Sched. U, s. 19. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 19 - 27/03/2009 2010, c. 1, Sched. 29, s. 10 (1-3) - 27/03/2009 2012, c. 8, Sched. 56, s. 3 - 20/06/2012 2016, c. 37, Sched. 25, s. 4 - 08/12/2016