Waterloo Region & Guelph

Tax creditOntario program

Ontario Interactive Digital Media Tax Credit (OIDMTC)

The OIDMTC is a refundable tax credit for Ontario corporations that build interactive digital products meant to entertain people or educate children under 12, such as games and kids' learning apps. It's based on Ontario labour costs, plus marketing costs for products you sell yourself. Most websites and promotional products don't qualify.

Amount
40% of eligible Ontario labour and marketing costs for products you sell yourself; 35% of labour for products made for a client. No overall maximum is stated.
Status
Year-roundYou apply to Ontario Creates after the product is finished and your tax year ends, within 18 months of that year-end.
Type
Refundable tax credit (35% to 40%)
Run by
Ontario Creates and the Canada Revenue Agency
Where
All of Ontario
Checked on
Nov 13, 2026

Who it's for

  • Corporations (Canadian or foreign-owned) that develop the product at a permanent establishment in Ontario and file Ontario tax returns
  • Products whose main purpose is to entertain, or to educate children under 12
  • Finished products that use at least two of text, sound and images, and let the user choose what they see and in what order
  • Products with a revenue stream, such as sales, subscriptions, in-app purchases or unrelated third-party ads

Not for

  • Most websites (unless over half the site is games, VR or AR, licensed film or TV content, or content for children under 12)
  • Products mainly meant to promote a business, product or service
  • Training products for industry, companies or staff
  • News, opinion, advice, weather or market reports
  • Reference material, databases, search engines, blogs and content aggregators
  • System software and products mainly for communicating with other people
  • Partnerships

What it covers

  • Salaries and wages of Ontario-resident staff working on the product in Ontario
  • Payments to arm's length Ontario contractors for development work
  • For products you sell yourself: marketing and distribution costs, up to $100,000 per product

How to apply

  1. Finish the product, pay the costs and wait for your tax year to end.
  2. Apply to Ontario Creates through its online portal for a Certificate of Eligibility, with one application covering all products finished that year.
  3. Pay the administration fee: 0.15% of eligible costs, at least $1,000 and at most $10,000.
  4. File your T2 return with Schedule 560 and the certificate (or your own estimate until it arrives). Confirm your claim with your accountant.

Good to know

  • Labour must meet the 80/25 rule: at least 80% of development labour paid to eligible Ontario people, and at least 25% as wages to your own employees.
  • Ontario Creates doesn't give preliminary eligibility opinions; it offers email questions with a business officer.
  • Labour claimed under SR&ED can't also be claimed here.
  • Separate rules apply to digital game companies (35%, with a $1 million labour minimum).
  • The Ontario Creates page lists the email as both taxcredit@ontariocreates.ca and taxcredits@ontariocreates.ca.

Questions

Can I claim it for building my company's website?

Almost certainly not. The official guidelines exclude most websites and products made mainly to promote a business. A website only qualifies if over half of it hosts games, VR or AR, licensed film or TV content, or content for children under 12.

Does a business app count?

Only if its main purpose is entertainment or educating children under 12. Business tools, staff training and reference products are excluded.

When do I apply?

After the product is finished and your tax year has ended, within 18 months of that year-end.

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