Digital Media Tax Credits
Digital Media Tax Credits support the creation of multimedia whose primary purpose is to educate, inform, or entertain. The programs have been growing in both scope and size and provide significant financial assistance. Each province has its own process, with most taking 12 to 24 months to receive the refund from the date the expense is incurred. Espresso Capital provides bridge financing backed by approved digital media tax applications which improves cash flow significantly.
Digital Media Tax Credits exist in the provinces of British Columbia, Ontario, Nova Scotia, Manitoba, PEI and Quebec. All these provinces provide an incentive based on in-province labour expenditure and some provide incentives for marketing and distribution expenses.
Incentive Summary
|
Province |
Incentive |
Link |
| BC | 17.5% of labour | BC Ministry of Finance |
| ON | 40% of labour (no max) and marketing & distribution (max $100k/product)
Fee for service products: 35% of labour |
Ontario Media Development Corporation |
| NS | Lesser of 50% of labour (+ 10% if outside of Halifax) or 25% of total expenditure (+ 5% if outside of Halifax)
Marketing & distribution (max $100k/product) |
Nova Scotia Ministry of Finance |
| MB | 40% (max $500k/project) of labour | Manitoba Government |
| PEI | 37.5% of labour | Innovation PEI |
| PQ | 30% of labour + 7.5% if in French for multimedia produced without receiving an order
26.25% of labour for multimedia produced with a specified order |
Investissement Québec |
Each province has different restrictions, with the most common being:
On October 17, the long awaited “Jenkins Report” on R&D in Canada was presented to the federal government. While the scope of the report was on all government R&D programs, there were a number of recommendations to government on the SR&ED program specifically. Since the SR&ED program is very important to Espresso Capital, we wanted [...]
Vancouver and Toronto, Nov 27, 2011– Espresso Capital Partners, a provider of alternative financing for growth companies in Canada, announces the first closing of its second Fund based on financing government tax credits . The $30-million Espresso Tax Credit II Fund was created in response to increasing demand from technology and digital media companies for funding [...]
Canada’s SR&ED program is currently being reviewed by the federal government and your input is important. Help us keep SR&ED intact – tell the federal government how it’s important to your company In December 2010, the federal government convened an Expert Panel to review federal support of Research and Development in Canada. Several organizations provided input [...]
Like the alien plant in Little Shop of Horrors that was always demanding “Feed Me, Seymour”, technology startups constantly gobble cash. The CEO’s top priority is to continually feed this beast. This means that overriding the operation of any tech startup is the every-present need for more money. As illustration, let’s run through the finance [...]
After reading the article by Barrie McKenna entitled “Flawed R&D scheme costs taxpayers billions” (http://bit.ly/fHCJFo) in the Globe and Mail’s March 11, 2011 edition, I believe there are some truths and some misconceptions. Mr. McKenna writes, “And the low risk of getting caught means too much of the money winds up in the hands of [...]
Copyright ©2011 Espresso Capital Partners
