TORONTO — Ontario says it is changing a tax credit available for small video game developers in an effort to increase their cash flows.
Economic Development Minister Todd Smith says the current rules are complex and often leave companies waiting over a year to access the refunds.
Through the Ontario Interactive Digital Media Tax Credit, the government gives firms a 35 to 40 per cent refundable credit for labour, marketing and distribution of their products.
Currently, companies must wait until a video game is complete and must have spent more than $1 million on labour costs to qualify for the credit.
The government says it will change to rules to allow companies to apply for the credit each year and lower the minimum amount spent on labour costs to $500,000.
The province says that in 2017 the interactive digital media industry — which is largely video game developers — employed over 22,000 people in Ontario.
The Canadian Press