Regulation - LGIC

Proposed Amendments to the General Regulation (O. Reg. 37/09) of the Taxation Act, 2007 regarding the Ontario Interactive Digital Media Tax Credit, the Ontario Film and Television Tax Credit and the Ontario Production Services Tax Credit

Regulation Number(s):
Bill or Act:
Taxation Act, 2007
Summary of Decision:
In the 2015 Ontario Budget, the government announced changes to the Ontario Interactive Digital Media Tax Credit (OIDMTC) to narrow the scope of the credit and replace the development requirement for specified and non-specified products with a labour-based test. Sections 34, 35, 35.1 and 35.2 of O.Reg.37/09 General under the Taxation Act, 2007 have been amended to implement these changes.

In the 2015 Ontario Budget, the government also announced changes to the Ontario Film and Television Tax Credit (OFTTC) to continue the province's long-standing administrative practice of not treating government equity investments in a production as assistance under the credit. Section 29 of O.Reg.37/09 General under the Taxation Act, 2007 has been amended to implement this provision.

The government also announced rate reductions to the Ontario Production Services Tax Credit (OPSTC) and the Ontario Computer Animation and Special Effects Tax Credit (OCASE) in the 2015 Budget. A transitional fund was created to provide relief for certain film and television productions that were affected by these rate reductions. Sections 29 and 33 of O.Reg.37/09 General under the Taxation Act, 2007 have been amended to provide that payments from the transitional fund are not treated as assistance for the purposes of the OFTTC and the OPSTC.

On October 19, 2016, the federal government announced it had removed talk shows from the list of excluded productions for the Canadian Film or Video Production Tax Credit (CPTC). Because Ontario's film and television tax credits are generally harmonized with the federal credits, absent regulatory amendments, Ontario would have paralleled the federal change. Amendments have been made to sections 27 and 31 of O.Reg.37/09 General under the Taxation Act, 2007 to maintain the treatment of talk shows as excluded productions for the purposes of the OFTTC and OPSTC.
Further Information:
Proposal Number:
15-MOF028
Posting Date:
November 2, 2015
Summary of Proposal:
In the 2015 Ontario Budget, the government announced changes to the Ontario Film and Television Tax Credit (OFTTC) and the Ontario Interactive Digital Media Tax Credit (OIDMTC). The proposed regulatory amendments would implement these changes by:
• narrowing the scope of the OIDMTC;
• replacing the development requirement of the OIDMTC; and
• providing that government equity is not treated as assistance under the OFTTC.

The proposed regulatory amendments would also provide that payments from the 2015 Ontario Production Services and Computer Animation and Special Effects Transitional Fund are not treated as assistance for the purposes of the OFTTC and the OPSTC.
Contact Address:
Rebecca Langstaff
Senior Legislative Design Specialist Coordinator
Corporate Tax Design Unit
Corporate and Commodity Taxation Branch
Ministry of Finance
Frost North - 2nd Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1

CCTB.Branch@ontario.ca
Effective Date:
April 23, 2015
Decision:
Approved