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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ZippyDSMleequiknkold:you too eh? 0-o10/22/2014 - 10:23am
Michael ChandraI don't like bullying anymore than you do, and yes, I think you're petty. Not commenting on the sob part, because I don't know your mother and don't see why I'd insult her.10/22/2014 - 10:02am
quiknkoldif that makes me petty, then I guess I'm one petty sob10/22/2014 - 8:48am
quiknkoldwell I'm sorry Conster, Having my skull smashed in when I was 14 made me skeptical to apologies when it comes to Bullying regardless of the platform its given. I guess Bullies beat the sympathy out of me.10/22/2014 - 8:47am
ConsterOn an unrelated note, I'm missing a "heck if I know" option on the poll.10/22/2014 - 8:33am
ConsterIf someone offends a bunch of people on twitter, they should apologize on twitter, and not accepting said apology because it's "only" on twitter is petty.10/22/2014 - 8:22am
BillThe first link is 4 days old, I didn't see it until today.10/22/2014 - 8:19am
BillJust posting them for the record since they have become part of the GG narrative.10/22/2014 - 8:17am
Billhttp://www.breitbart.com/Breitbart-London/2014/10/21/Incredibly-GamerGate-is-winning-but-you-won-t-read-that-anywhere-in-the-terrified-liberal-media10/22/2014 - 8:14am
BillOh yeah, http://www.breitbart.com/Big-Hollywood/2014/10/17/Supporting-GamerGate-Does-Not-Make-You-a-Bully10/22/2014 - 8:14am
BillThere are now two pro GG articles on Breitbart today, one by James Fudge's favorite "quotes out of context" writer Milo. Amazingly Milo claims GG is winning.10/22/2014 - 8:13am
quiknkoldhavent seen any apologies from the "Other Side" except from Boogie, and he made a video, and I saw him give his apology and I accepted it.10/22/2014 - 8:03am
Michael ChandraWhich usually is "the guy is an ass and I don't really believe it, but fine, benefit for the doubt THIS time and no second chances."10/22/2014 - 7:58am
Michael ChandraI'll accept his apology for something that, no matter whether a joke or serious is way out of line, just as much as I accept apologies from others.10/22/2014 - 7:57am
Michael ChandraRefusing to accept an apology that is done through the same medium and does not sound horribly half-assed is just plain childish.10/22/2014 - 7:56am
Michael ChandraPeople on 'both' sides of the debate have screwed up and apologized without such acts. Where's your criticism on the other side?10/22/2014 - 7:56am
E. Zachary KnightReason posted the second part of their GamerGate story: http://reason.com/archives/2014/10/22/gamergate-part-2-videogames-meet-feminis/10/22/2014 - 7:51am
quiknkoldagain, I dont accept any apology when I cant see their face when they give it to me. He needs to do a video, or do something positive like charity or whatever.10/22/2014 - 7:15am
Michael ChandraBut that's the case with every apology, isn't it?10/22/2014 - 5:57am
Michael ChandraDon't get me wrong. The guy from Gawker screwed up, and he acknowledged that and apologized. Whether people believe him is a second thing.10/22/2014 - 5:57am
 

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