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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Matthew Wilsonhttps://www.youtube.com/watch?t=18&v=CbGmrySQLIg looks like Inafune is giving capcom the middle finger.07/02/2015 - 5:05pm
TechnogeekUnfortunately, the shoutbox moves fast enough that I can't find why I got that impression, so if was indeed erroneous I do apologize.07/02/2015 - 4:34pm
TechnogeekBut yeah, as far as my earlier comment re: you and the article, I did get the impression at some point that you felt there should have been some sort of reprecussions for the article's existence.07/02/2015 - 4:34pm
TechnogeekI got expletive-censored for posting something a few weeks back wherein I expressed my shock that I agreed with you about something, Skunk; so you're not the only one being hit with that stick.07/02/2015 - 4:31pm
Andrew EisenI know you don't. And you haven't recently so all's well.07/02/2015 - 4:25pm
Goth_SkunkI don't think I misrepresented anything.07/02/2015 - 4:24pm
Andrew EisenHeavy profanity is not permitted in the Shout box. Words like "moron" are but we ask that our readers not resort to name-calling.07/02/2015 - 4:23pm
Goth_SkunkSo I can't say a 4-letter curse word, but Mechacrash is free to call me a moron. Acknowledgment: Mecha was warned about his conduct, but his post was not edited, as mine was.07/02/2015 - 4:20pm
Andrew EisenWhat people took issue with was your misrepresentation of what the author said. Now that you're criticizing what she actually said, no one has a problem (though they might disagree with your opinion).07/02/2015 - 4:19pm
Andrew EisenThat's not comparable at all. One is advice, one is a rule.07/02/2015 - 4:17pm
Goth_SkunkBut apparently, people seem to take issue with my justification and have been jumping down my throat about it for... 24 hours?07/02/2015 - 4:17pm
Goth_SkunkAnd now we've just had an example wherein I was forced to moderate myself in order to minimize offense.07/02/2015 - 4:16pm
Goth_SkunkThat's what this whole conundrum's been about! I strongly disapproved with the Wired article writer's suggestion and made that opinion known here in the shoutbox.07/02/2015 - 4:16pm
Andrew EisenPlease keep such strong language out of the Shout box. Anyway, that's fine. If there's something you want to write about. Go right ahead. Don't like someone's suggestion? Feel free to say so.07/02/2015 - 4:13pm
Goth_SkunkIf I get a response "this rape scene you wrote was offensive. You should've done it differently. Consider examples A, B, C, or D" I would happily take it under advisement should I decide to write something similar in the future.07/02/2015 - 4:12pm
Goth_SkunkIf I get backlash for such a decision consisting of "this rape scene was offensive," that's fine. If I get criticism like "this rape scene was so offensive, you shouldn't have written it," I'll respond "Go (expletive) yourself"07/02/2015 - 4:11pm
Andrew EisenMatthew - Oh, absolutely. But no one's saying any specific trope or subject should be taboo.07/02/2015 - 4:11pm
Andrew EisenA few have opined that I should have left the "I'm on a whore" line out of my Old Spice Parody video. I don't see why that's a problem.07/02/2015 - 4:10pm
Goth_SkunkHypothetical: If I'm writing a story and in my story there is a rape scene, and that rape scene is present because I want it to be there, and it is very relevant to the story as a whole, I'm going to write it.07/02/2015 - 4:10pm
Matthew WilsonI think it should be criticized for being used badly, but I dissagree with the idea that is should never be used. as far as I am concerned its a story telling tool, and like all tools it can be used in a good or bad way.07/02/2015 - 4:09pm
 

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