OIDMTC Products

• Ontario Creates’ administration of OIDMTC reflected the Ministry of Finance’s general policy interpretation that a website embedded in a third party’s website is not a complete interactive digital media (IDM) product and is therefore ineligible for OIDMTC support under s.93 of the Taxation Act, 2007. However, it has come to the attention of the Province that business models in the film and television industry often require that websites purchased or licensed by a broadcaster be integrated within the broadcaster’s website for a seamless user experience. In recognition of this industry-specific business model, the Ontario Ministry of Finance proposes to make a policy change to the eligibility of certain embedded websites based on film, television and internet productions.

  This policy change, subject to the approval of Cabinet, would be implemented by way of regulatory amendment, effective November 1, 2017.

  Websites that:

  • Primarily host content related to film, television or internet production;
  • Meet the eligibility requirements of section 34 (5) 9ii of O.Reg. 37/09 General under the Taxation Act 2007;
  • Have been purchased or licensed by a broadcaster;
  • Are embedded in the broadcaster’s website; and
  • Have not received a certificate of eligibility or a letter of ineligibility before November 1, 2017

  would be considered eligible for the OIDMTC provided Ontario Creates is reasonably assured that the product would meet all of the tax credit eligibility requirements if the purchaser or licensor permitted the product to be distributed as a separate product.
  
  Please note: Not all embedded websites based on film, television or internet productions will be considered eligible as they must meet all the eligibility requirements for website products with costs after April 23, 2015. See OIDMTC regulation section 34 (5) 9ii.

  For all other types of website products (other than those described in OIDMTC regulation 34 (5) 9ii):
  In order for product development work to be eligible for the OIDMTC, an applicant must develop a completed interactive digital media product. A component of an interactive digital media product is not eligible for the OIDMTC because it is not a completed product. “Wrapped, “embedded”, “nested, or “framed” website content is not eligible for the OIDMTC.

  Mini-sites and microsites are not eligible for the OIDMTC as they are not complete products. Mini-sites and microsites are a separate page of a website that has a different URL than its home page and is used to provide information about, or to promote, something that is related to the home page. For example, a large software corporation may create a microsite with its own URL to feature a tech blog. When the user goes to that URL address it takes them to a tech blog page that is integrated into the software corporation’s main website. The microsite is one of many pages that make up the corporation’s website.

  If a web product can demonstrate it functions independently and is not integrated into another website, can be licensed to arm’s length users, has its own URL, and operates using its own content management system (“CMS”) platform or software, then that web product may be considered a completed interactive digital media product for the purposes of the OIDMTC. From the standpoint of a product review, Ontario Creates looks at the technical structure and development, the business model, how users (i.e. members of the public) access the product, and user experience of a product to help determine if something is a complete interactive digital media product or a component of another product.