Ontario Digital Media, Film & Content Credits (2025 Guide)

Ontario is a global leader for digital media, film, television, and content production—thanks to a suite of generous, refundable tax credits and grants that support creativity, employment, and growth in the province. The Ontario Interactive Digital Media Tax Credit (OIDMTC), Film/TV credits, and Book Publishing credits are cornerstones of Ontario’s creative economy, attracting both local startups and international productions. This page provides an in-depth guide to eligibility, application, optimization, and stacking—along with practical tips for maximizing your claim.

OIDMTC: Refundable credit for Ontario-based interactive digital media products—video games, e-learning, apps, and more.
Ontario Film & TV Credits: Refundable credits for eligible film, TV, and animation productions made in Ontario.
Ontario Book Publishing Credit: Refundable credit for Ontario publishers producing eligible Canadian-authored books.
Stacking: Most credits are stackable with federal programs (e.g. Canadian Film or Video Production Tax Credit, SR&ED, IDMTC).

Ontario digital media studio with a production team, film camera on set in Toronto, and a stack of published books

Ontario Interactive Digital Media Tax Credit (OIDMTC)

Who is eligible? Ontario-based corporations developing eligible interactive digital media products. This includes video game studios, e-learning, mobile apps, VR/AR, and some web platforms. Both in-house and contract development may qualify.
Credit Rate: Up to 40% refundable credit (35% for non-specified products) on eligible Ontario labour & marketing/distribution expenses. For qualifying digital games by corporations that are not "large digital game corporations," the credit is up to 40% of qualifying expenditures. Large game corporations may claim a lower rate.
Eligible Expenses: Ontario salaries/wages, some contractor costs, and marketing/distribution costs for specified products. Work must be performed in Ontario and for eligible products.
How to claim: Obtain a Certificate of Eligibility from Ontario Creates after the product is complete (or annually for ongoing products). File the certificate with your T2 corporate return and Ontario schedules (ON479, ON501).
Application Timeline: Submit within 18 months of the end of the tax year for which you are claiming.
Stacking: OIDMTC can often be claimed in addition to federal SR&ED (for R&D components), but not on the same expenditure. Coordinate carefully.
Tip: Startups, incubators, and contract dev shops can access OIDMTC even before reaching profitability as the credit is fully refundable. Keep detailed payroll, work logs, and product documentation for audit-proof claims.
OIDMTC Official Guide

Ontario Film & Television Tax Credits

Ontario Film & Television Tax Credit (OFTTC): Refundable credit for eligible Ontario-based productions. Up to 35% of eligible Ontario labour expenses (plus 10% regional bonus for filming outside Toronto).
Ontario Production Services Tax Credit (OPSTC): Refundable credit for domestic or international productions filmed in Ontario. 21.5% of qualifying Ontario production expenditures (no Canadian content requirement).
Ontario Computer Animation & Special Effects (OCASE) Credit: Refundable credit of 18% of eligible Ontario labour for computer animation, VFX, and digital post-production on eligible films/TV.
Eligibility: Incorporated Ontario production companies, minimum Ontario spend and content, and, for OFTTC, Canadian control/content requirements.
How to claim: Apply to Ontario Creates for certification (pre-approval recommended), complete production, then submit application for final certificate. Claim on your T2 return with supporting Ontario schedules and eligibility certificate.
Deadlines: Certificate application must be filed within 24 months of year-end in which principal photography began.
Stacking: Most credits can be combined with federal CPTC, PSTC, and other incentives, but not for the same dollar of expenditure. OPSTC and OCASE are commonly stacked.
Ontario Film/TV Tax Credits

Ontario Book Publishing Tax Credit

Who is eligible? Ontario-based book publishers (incorporated, with a permanent establishment in Ontario) publishing eligible Canadian-authored books.
Credit Rate: Up to 30% refundable credit on eligible expenditures (editing, design, printing, marketing, and promotion). Maximum $30,000 per book.
Eligible Books: Print or digital books by Canadian authors, in eligible genres (fiction, non-fiction, children’s, poetry, etc.). Minimum print run and Canadian content requirements apply.
How to claim: Apply to Ontario Creates for eligibility within 18 months of book publication. File the certificate with your corporate tax return and Ontario schedules.
Book Publishing Credit Info

Claim Process & Optimization Tips

Plan project eligibility: Confirm your company structure, Ontario residency, and project type before beginning work. Register early with Ontario Creates for pre-approval (recommended for film/TV).
Track all Ontario-based payroll, eligible contractor costs, and qualifying expenditures separately from non-eligible costs.
Maintain detailed production logs, contracts, timesheets, and receipts. Ontario audits are documentation-intensive.
Apply for the relevant tax credit certificate (OIDMTC, Film/TV, Book Publishing) post-completion using Ontario Creates’ online portal.
File your T2 corporate return with all Ontario schedules (ON479, ON501, ON554, etc.) and attach the certificate(s).
Coordinate with your accountant to maximize stacking with federal credits (e.g. SR&ED, CPTC, PSTC) and avoid double-claiming the same expenses.

Tip: For large productions or multi-claim years, consult an Ontario tax professional or film/media accountant to ensure all eligibility, stacking, and documentation rules are met.

Frequently Asked Questions: Ontario Media Credits

Can I claim OIDMTC if my company is not profitable?

Yes. The OIDMTC is fully refundable, so you can receive a cash refund even if you have no taxable income.

Can international companies claim Ontario film/media credits?

Yes, if you establish an Ontario-incorporated company with a permanent establishment in Ontario and meet all eligibility requirements. OPSTC is popular with international productions filming in Ontario.

Can I combine OIDMTC with SR&ED or other credits?

You may claim both, but not for the same expenditure. Carefully segregate costs and consult a tax specialist for complex situations.

How long does it take to receive the credit?

Processing times vary, but allow several months from submission to receipt of refund, especially for large claims. Early and thorough documentation helps speed up the process.

What documentation should I keep?

Keep payroll records, contracts, timesheets, project documentation, eligibility certificates, and proof of Ontario residency for all staff. Maintain all records for at least 6 years for audit defense.