Ontario Increases Tax Credit For Game Developers

The Canadian province of Ontario has increased its interactive digital media tax credit from 20% to 30%, announced finance minister Dwight Duncan in his speech regarding the budget on March 23. The credit applies to small digital media businesses operating within the province, designed to attract more entrepreneurs to set up shop there. The tax credit increase came alongside the establishment of a $47.5 million ($40.6 million USD) entertainment and creative partnerships fund, to be doled out over a period of three years to skills development, product development, and marketing in the Ontario entertainment industry. Toronto cultural groups will also receive a combined $49 million ($41.9 million USD) for projects and exhibits in the next three years. "The entertainment and creative cluster," said Duncan, "has great potential to grow and create jobs, and it boosts economic growth by attracting tourists, businesses and investors." In 2004, entertainment contributed $9.9 billion ($8.47 billion USD) to Ontario's GDP, putting it behind California and New York as North America's third largest entertainment industry employer.