The Power of Tax Breaks in Ontario's Technology Corridor

August 19, 2011 -

Members of Ontario's "Technology Corridor" attended Gamescom in Cologne, Germany to show their support for the culture, work ethic and incentives the Canadian region provides to developers. Over the past two years, Canada's gaming industry has expanded 11 percent annually and is forecasted to grow 17 percent in each of the next two years. Executives from the Ontario Technology Corridor were at Gamescom to demonstrate the province's "winning combination" of talent and tax credits. Canada is one of the world's top three game producing nations, mostly due to its hard sell to developers in other regions in the world.

"Ontario continues to offer the talent and the financial incentives that make this region such a strong part of the digital entertainment industry," said Larry MacKinnon, Director of Business Development for Technology in London Ontario and member of the Ontario Technology Corridor. "Our job at Gamescom is to add to our tremendous home-grown crop of companies and help demonstrate that Ontario is a prime destination in North America for gaming investments."

The power of the region is a combination of Federal and Ontario provincial research and development tax credits that gives developers and tech companies what the group calls "the most favorable tax treatment among G-8 countries." This allows Ontario companies the ability to cut R&D expenditures by up to 63 percent.

The group highlighted a few of the companies that are taking advantage of tax breaks and incentives in the region including Arkadium Inc., who opened an office in Toronto in July of this year and plans to produce ten new games in the next 12 months; Gameloft Inc., who began hiring 205 people for a new Toronto gaming studio; Silicon Knights Inc., who announced in July plans to double its staff by adding 80 new jobs; and Morro Images Inc. (a sister firm to Morro Images of Potsdam-Babelsberg, Germany), who is working with Silicon Knights as Morro Images expands their current visual effects operation in St. Catharines. Other companies that are part of the Ontario Technology Corridor include Ascension CrossMedia, Ubisoft, Drinkbox Studios, Fuel Industries and Magmic Games.

This week Ontario and Cisco inked a deal for major expansions to its Ottawa and Toronto facilities. Cisco Chairman and CEO John Chambers said that "Ontario has long been globally recognized as a centre of excellence for IT innovation," adding that "both the Province and Cisco share a dynamic vision for building on the substantial IT R&D capability resident here and we see a key opportunity to join forces to further Ontario’s innovation machine."

"Ontario is well positioned to compete with other jurisdictions who are trying to attract gaming firms and we have a lot to offer -- that will be one of my message at the conference," said Darius Basarab, Senior Business Development Specialist with the Ontario Ministry of Economic Development and Trade.

Ontario's lead agency for provincial incentives in digital media is the Ontario Media Development Corporation (OMDC). To date the OMDC IDM Fund has contributed $7.7 million to 76 projects with budgets totaling $32.7 million and continues to offer the following incentives:

- Ontario Interactive Digital Media Tax Credit: refunds 35-40 percent of eligible production costs

- Ontario Computer Animation and Special Effects Tax Credit: refunds 20 percent of labor costs

- OMDC Interactive Digital Media Fund: up to $150,000 in project production funding, up to a maximum of 50 percent of the project budget.

Ontario's entertainment and creative cluster employs nearly 300,000 while contributing $12.2 billion to the province's GDP. In addition, 22 Ontario colleges and universities produce 18,000 graduates per year from 174 specialized digital media programs including 3D animation, film studies, advanced computer programming, math, and hardware engineering.

Canada's federal corporate income tax rate will fall from 18 percent in 2010 to 15 percent by 2012 -- less than half of the top U.S. federal marginal corporate income tax rate, and the lowest in the G7 plus the lowest R&D costs in the G7, with a 12.9 percent advantage over the U.S. Canada also has the world's soundest banking system according to the World Economic Forum.

For more information about the Ontario Technology Corridor, check out www.ontariotechnologycorridor.com.


 
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Wonderkarpwhich is interesting cause this the first one 100% made by 2k games after the THQ buy11/23/2014 - 4:17pm
Wonderkarpbleh. the more I play WWE 2k15 on PS4, the more I get disappointed.11/23/2014 - 4:09pm
Neo_DrKefkaIt happened around 1030 this morning. I was not blooding because blood was on my hands11/23/2014 - 3:50pm
Andrew EisenThat depends on a lot. Were you bleeding at the time you requested to leave or did you want to leave work to go to the doctor over an incident that happened on a different day that you didn't file an incident report for?11/23/2014 - 3:21pm
Neo_DrKefkaThat would be a major OSHA violation correct?11/23/2014 - 1:54pm
Neo_DrKefkaOff topic but I was at work and went over to the first aid kit to get some eye drops. I look at my hand and noticed blood on my hands. My employers said their is no incident report and they won't send me to see a doctor and that I am abandoning my job.11/23/2014 - 1:54pm
MaskedPixelanteThe more I hear about AC Unity being rushed out, the more I think Ubisoft was telling the truth about why they couldn't add female co-op models.11/23/2014 - 1:14pm
IanCI wouldnt say the 360/PS3 version were superior. They were different games.11/23/2014 - 11:49am
MechaTama31It's hard to rank my top 5 against eachother, but they would include Ghostbusters, Back to the Future (all of it), Monty Python and the Holy Grail, The Shawshank Redemption, and The Princess Bride.11/23/2014 - 11:09am
Andrew EisenTrue, but I liked the fact that rather than do a crappy looking version of the PS3/360 version, it went with an art style more suited to the Wii's strengths.11/23/2014 - 12:26am
Wonderkarpif I had the money, I'd buy one of those expensive proton pack replicas11/22/2014 - 11:25pm
Wonderkarpthats the wii version though. the PS3/360 version is far superior.11/22/2014 - 11:19pm
Andrew EisenOdd that there was no hose connecting the thrower to the backpack. Was there just no more horsepower left in the Wii to animate it? And did seriously no one on the dev or QA team notice the Ghostbusters patch on the player's sleeve was backwards?11/22/2014 - 11:17pm
Andrew EisenI played it one the Wii and rather liked it.11/22/2014 - 11:15pm
Neo_DrKefkaGhostbusters on the PS3 and Xbox is Ghostbusters III for me. It was a short but wonderful experience.11/22/2014 - 11:13pm
Andrew EisenGhostbusters is my number one but the other films in my top 5 are Blues Brothers, Nightmare Before Christmas, Little Shop of Horrors (the Frank Oz one) and Jaws.11/22/2014 - 11:05pm
Wonderkarpso interesting info about that blocklist I'm on https://pbs.twimg.com/media/B3GOLniCUAAnHbP.png11/22/2014 - 10:54pm
Wonderkarpspeaking of game swag, went to a GTAV midnight release at a gamestop. I was getting WWE2k15. First in line so I got 2 free posters and a free Los Santos Sherrif hat that doesnt fit my head. Still sits proudly on a shelf11/22/2014 - 10:34pm
Wonderkarpno pics though cause I'm going to be moving soon hopefully so I'm not too keen on working on it, other than buying some stuff.11/22/2014 - 10:33pm
WonderkarpGhostbusters, Alien, and Aliens make up my top 3 favorite films. Its not a Coincidence that Sigourney Weaver is my favorite Actress11/22/2014 - 10:31pm
 

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