Ontario Government announces new source of funding
Ontario Government announces new source of funding*
Making good on its March budget-time promise, the McGuinty government announced that the Ontario Media Development Corporation (the "OMDC") has $10 million to dole out grants to creative companies under what is being called the Intellectual Property Development Fund (the "Fund"). Video game companies are specifically included given the requirement that the recipients be screen-based.
Who can apply?
Ontario-based existing companies. This Fund is available to Ontario (or Federal) companies with establishments in Ontario focussed on screen-based content products. Start-up or emerging companies are not shut out by the requirement for the applicant to have been in business for one year; such companies can piggy-back on their principals experience, if it qualifies of course. There are certain exclusions that are described in the IP Fund Guidelines found here: http://www.omdc.on.ca/Page5575.aspx (The exclusions for interactive digital media products are found on page 5 of the Guidelines.)
What is being financed?
Eligible expenditures in early stage activities. "Eligible expenditures" means labour expenditures, non-labour expenditures and overhead expenditures incurred over the course of the taxation year for which the applicant has applied to the Fund. In the case of interactive digital media products, "early stage activities" means any activity necessary to bring closer to the completion of a functioning prototype or market ready stage.
When can one apply?
January 2010. The applications were posted today and can be found here: http://www.omdc.on.ca/Page5575.aspx. Applications will be accepted until July 31, 2010 (if there is any money left). The timeframe for expenditures is as follows: those incurred after March 31, 2009 (notice the retroactivity) up to and including March 31, 2010, and paid no later than 60 days after the applicant's corporate fiscal year end will be considered eligible.
How can one get more information?
Aside from the FAQ and Guidelines, the OMDC is holding info sessions in January/February; details can be found here: http://www.omdc.on.ca/Page5575.aspx
The key here, as with other similar initiatives, is to apply quickly (and correctly) as the Fund will be allocated on a first come, first served basis.
*While quantities last. There is a cap of $10 Million and no applicant can secure more than $150,000, which means there will be at least 66 successful applicants. The individual cap would have to be shared amongst "associated" company applicants (the test for being associated is as found in the Income Tax Act).