SR&ED and OIDMTC Consultants - Canada - Ontario - Toronto - GTA

Scientific Research and Experimental Development (SR&ED) is a government incentive program designed to encourage Canadian Corporations to advance technology. The SR&ED Program provides claimants cash refunds and / or tax credits for their expenses on eligible R&D work conducted in Canada.

SR&ED Eligibility Requirements

• SR&ED project must contain:

• Scientific or technological advancement

• Scientific or technological uncertainty

• Scientific and technical content

Non-SR&ED Activities:

• Market research or sales promotion

• Quality control or routine testing

• Social science or humanities research

• Prospecting, exploring, producing, or drilling

• Commercial production or commercial use

• Style changes

• Routine data collection

The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit. It is available to corporations that develop interactive digital media products in Ontario. The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.

For the purposes of the OIDMTC, an Interactive Digital Media product has the primary purpose to educate, inform, or entertain, and achieves its primary purpose by presenting information in at least two of: (i) text, (ii) sound and (iii) images. Types of interactive digital media products that may be eligible for the tax credit include but are not restricted to games, educational and informational products.

Eligible OIDMTC Products

- Digital Games

- Digital Surveys /Questionnaires

- Web Application

- Mobile Appllications

-CD/DVDs

- Etc.

Non-Eligible OIDMTC Expenditure:

- Tools

- Memberships

- Training

-Equipment

Non-Eligible OIDMTC Products

- Cannot be more than 50% Interpersonal Communication / Social Networks

- Operating System Software/data base/word pressing/spreadsheet

- Products where user does not have control over outcome (Eg: DVD Menu)

- Cannot be over 50% promotional

- Product not developed for Sale or License

- Not intended to be used by individuals (Eg: Machinery)

- Cannot have public financial support

-Non-Ontario development labour

CTAP provides SR&ED and OIDMTC consulting in CTAP is based in the Greater Toronto Area and works with clients throughout Ontario, from Ottawa and Cornwall, to Sarnia and Windsor (Tecumesh, LaSalle, Lakeshore), to Thunder Bay. We offer standard delivery to all Ontario cities including St. Catharines, Niagara Falls, Welland, Burlington, Hamilton, Oakville, Milton, Mississauga, Port Credit, Georgetown, Brampton, Bramalea, Etobicoke, Toronto, Willowdale, North York, Scarborough, Woodbridge, Maple, King City, Concord, Richmond Hill, Markham, Unionville, Stratford, Oshawa, Whitby, Clarington, Acton, Erin, Kitchener, Waterloo, Cambridge, Guelph, Brantford, Brant, Brockville, Woodstock, Barrie, Carp, Innisfil, Midland including Tay and Penetanguishene, Orillia, Ramara, Leamington including Kingsville, Sudbury, Chatham, Kent, London, Kingston, Nepean, South Frontenac, Peterborough including Smith-Ennismore-Lakefield, Belleville, Cornwall, North Bay, Sault Ste. Marie, Kawartha Lake, Muskoka, Norfolk, Timmins, Owen Sound, and many more. If you have any questions about SR&ED or OIDMTC, call one of our
 
Scientific Research and Experimental Development (SR&ED) is a government incentive program designed to encourage Canadian Corporations to advance technology. The SR&ED Program provides claimants cash refunds and / or tax credits for their expenses on eligible R&D work conducted in Canada.

SR&ED Eligibility Requirements

• SR&ED project must contain:

• Scientific or technological advancement

• Scientific or technological uncertainty

• Scientific and technical content

Non-SR&ED Activities:

• Market research or sales promotion

• Quality control or routine testing

• Social science or humanities research

• Prospecting, exploring, producing, or drilling

• Commercial production or commercial use

• Style changes

• Routine data collection

The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit. It is available to corporations that develop interactive digital media products in Ontario. The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.

For the purposes of the OIDMTC, an Interactive Digital Media product has the primary purpose to educate, inform, or entertain, and achieves its primary purpose by presenting information in at least two of: (i) text, (ii) sound and (iii) images. Types of interactive digital media products that may be eligible for the tax credit include but are not restricted to games, educational and informational products.

Eligible OIDMTC Products

- Digital Games

- Digital Surveys /Questionnaires

- Web Application

- Mobile Appllications

-CD/DVDs

- Etc.

Non-Eligible OIDMTC Expenditure:

- Tools

- Memberships

- Training

-Equipment

Non-Eligible OIDMTC Products

- Cannot be more than 50% Interpersonal Communication / Social Networks

- Operating System Software/data base/word pressing/spreadsheet

- Products where user does not have control over outcome (Eg: DVD Menu)

- Cannot be over 50% promotional

- Product not developed for Sale or License

- Not intended to be used by individuals (Eg: Machinery)

- Cannot have public financial support

-Non-Ontario development labour

CTAP provides SR&ED and OIDMTC consulting in CTAP is based in the Greater Toronto Area and works with clients throughout Ontario, from Ottawa and Cornwall, to Sarnia and Windsor (Tecumesh, LaSalle, Lakeshore), to Thunder Bay. We offer standard delivery to all Ontario cities including St. Catharines, Niagara Falls, Welland, Burlington, Hamilton, Oakville, Milton, Mississauga, Port Credit, Georgetown, Brampton, Bramalea, Etobicoke, Toronto, Willowdale, North York, Scarborough, Woodbridge, Maple, King City, Concord, Richmond Hill, Markham, Unionville, Stratford, Oshawa, Whitby, Clarington, Acton, Erin, Kitchener, Waterloo, Cambridge, Guelph, Brantford, Brant, Brockville, Woodstock, Barrie, Carp, Innisfil, Midland including Tay and Penetanguishene, Orillia, Ramara, Leamington including Kingsville, Sudbury, Chatham, Kent, London, Kingston, Nepean, South Frontenac, Peterborough including Smith-Ennismore-Lakefield, Belleville, Cornwall, North Bay, Sault Ste. Marie, Kawartha Lake, Muskoka, Norfolk, Timmins, Owen Sound, and many more. If you have any questions about SR&ED or OIDMTC, call one of our
This article, published on September 10, 2013, provides an overview of two significant Canadian government incentive programs: the Scientific Research and Experimental Development (SR&ED) program and the Ontario Interactive Digital Media Tax Credit (OIDMTC). It outlines their eligibility criteria, non-eligible activities/expenditures/products, and highlights a consulting firm, CTAP, that specializes in helping businesses claim these credits.




Government Incentives for Innovation in Canada: SR&ED and OIDMTC​



The article focuses on two key Canadian government programs designed to foster technological advancement and digital media development:

1. Scientific Research and Experimental Development (SR&ED) Program:

This is a federal government incentive program that offers cash refunds and/or tax credits to Canadian corporations for expenses incurred on eligible R&D work conducted within Canada.

  • SR&ED Eligibility Requirements: To qualify, a project must demonstrate:
    • Scientific or technological advancement: The work must aim to generate new knowledge or improve existing technology.
    • Scientific or technological uncertainty: There must be a technical problem or unknown that cannot be resolved using publicly available knowledge or standard practice, requiring systematic investigation.
    • Scientific and technical content: The work must be carried out in a systematic investigation or search, involving experimentation or analysis.
  • Non-SR&ED Activities (Examples): The program specifically excludes activities such as:
    • Market research or sales promotion.
    • Quality control or routine testing.
    • Social science or humanities research.
    • Prospecting, exploring, producing, or drilling.
    • Commercial production or commercial use.
    • Style changes or routine data collection (unless directly supporting eligible SR&ED work).
2. Ontario Interactive Digital Media Tax Credit (OIDMTC):

This is a refundable tax credit administered by the Canada Revenue Agency (CRA) on behalf of the province of Ontario. It is available to corporations that develop interactive digital media products within Ontario.

  • Purpose of an Eligible OIDMTC Product: The primary purpose of the product must be to educate, inform, or entertain. It must achieve this purpose by presenting information using at least two of the following: (i) text, (ii) sound, and (iii) images.
  • Types of Eligible OIDMTC Products: Examples include:
    • Digital Games
    • Digital Surveys/Questionnaires
    • Web Applications
    • Mobile Applications
    • CD/DVDs (interactive)
    • Educational and informational products
  • Non-Eligible OIDMTC Expenditures:
    • Tools
    • Memberships
    • Training
    • Equipment
  • Non-Eligible OIDMTC Products: Products that generally do not qualify include those:
    • That are more than 50% interpersonal communication or social networks.
    • That are operating system software, databases, word processing, or spreadsheet applications.
    • Where the user does not have control over the outcome (e.g., a simple DVD menu).
    • That are over 50% promotional.
    • Not developed for sale or license.
    • Not intended to be used by individuals (e.g., software for machinery).
    • That have public financial support (this can vary; more recent rules may allow some stacking).
    • Non-Ontario development labor (a significant portion of labor costs must be incurred in Ontario).
Consulting Services:

The article mentions CTAP, a consulting firm based in the Greater Toronto Area that provides SR&ED and OIDMTC consulting services to clients throughout Ontario. They offer assistance in navigating the complexities of these tax credit programs.

In summary, both the SR&ED and OIDMTC programs are vital incentives for Canadian businesses, particularly those in R&D and interactive digital media. Understanding their specific eligibility criteria and exclusions is crucial for successful claims.
 
This detailed overview of Canada’s SR&ED and OIDMTC tax credit programs highlights two crucial opportunities for tech-driven companies in Ontario to reduce costs and reinvest in innovation. The SR&ED program supports scientific advancement by rewarding R&D efforts that confront technical uncertainty with measurable progress. Meanwhile, the OIDMTC is especially valuable for businesses developing interactive digital media that educates, informs, or entertains—such as games, apps, or web platforms—provided they meet specific eligibility requirements. What stands out is the clarity around what doesn’t qualify, helping businesses avoid wasted efforts on ineligible projects or costs. CTAP’s consultancy service extends its reach across all of Ontario, supporting corporations in navigating these complex programs with expert guidance and maximizing their tax credit claims. This article acts as both an introduction and checklist for organizations ready to claim what they’re entitled to.​
“Innovation deserves incentives—SR&ED and OIDMTC let Canadian companies turn their R&D into real returns.”​
 
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