Ontario budget provides some new money and tax perks to digital media

New media entrepreneurs didn't receive any significant spending increases in the recently released Ontario budget, but there are a few more incentives to help stimulate the sector. While several initiatives - including $2 million in new funding to train women in technology and $45 million for expanding tele-health - were applauded by some industry members, actual cash targeted at the digital media sector was in short supply. Nor was one oft-called-for measure: the expansion of the Interactive Digital Media Tax Credit to include pay-for-service as well as original content creators forthcoming. Such a change would have made the vast majority of new media entrepreneurs eligible to benefit from the break. Instead the refundable 20 per cent tax credit was expanded to include up to $100,000 of qualifying marketing and distribution expenses. Cost can include attending trade shows where the product is promoted, preparing the product for display or demonstration, advertising the product in print and electronic media and making the product available to consumers through distribution networks. Qualifying expenses must be incurred 24 months prior to and 12 months following completing of the eligible product. The May 3rd budget also introduced an Education Technology Tax Incentive for companies that provide price discounts or donations of new teaching equipment and learning technologies to universities and colleges. The estimated full-year cost is $6 million. It appears that the Ontario Film Development Corp will receive a new name and more cash. The Finance Minister said the agency, which manages the province's new media funding programs, will receive a $30-million top up over the next five years. It will also see its name changed to the Ontario Media Development Corp. Among other measures, the Tories are spending $2 million to establish an Ontario Provincial Police e-crime squad.

Ontario budget provides some new money and tax perks to digital media

News | 05/18/2000 4:00 am EDT

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