Ontario Interactive Digital Media Tax Credit

For Ontario-based companies developing digital games, mobile apps, or interactive learning products, production costs can add up quickly—especially when you’re investing heavily in skilled talent. The Ontario Interactive Digital Media Tax Credit is designed to ease that pressure by returning a meaningful portion of qualifying development costs to corporations creating interactive digital media in the province. Administered by Ontario Creates on behalf of the Government of Ontario, this refundable tax credit can generate cash flow even if your company isn’t yet profitable.

The credit focuses primarily on Ontario labour, making it especially valuable for studios and technology-driven enterprises that employ designers, developers, artists, and producers locally. Depending on how a product is developed—whether in-house or under a fee-for-service arrangement—businesses can recover roughly one-third to nearly half of eligible labour costs. Companies that own and market their own products may also receive support for certain marketing and distribution expenses, helping offset the costs of bringing a finished product to market. There are no fixed project caps, which makes the program attractive for both single-product studios and companies managing multiple productions over time.

This tax credit is commonly used by businesses in interactive entertainment, educational technology, and digital media, and applications are ongoing for companies meeting certain requirements. Understanding how your product qualifies and how to structure your claim can make a substantial difference, so exploring the full details can help determine how much value your business could unlock.