Feeling Jilted On The Ontario Digital Media Tax Credit ? Don’t Panic – It’s Still Financeable!media film tax credit loans

OVERVIEW – Information on the digital media tax credit in Canada . Recent changes to the program don’t eliminate your ability to finance these refundable credits.

The digital media tax credit in Canada allows Canadian firms to maximize their efforts in the oft exciting world of digital media. Recent changes will dramatically affect which firms can qualify for those refundable interactive credits in Ontario in particular. Let’s dig in.

One way to look at the ‘OIDMTC’ is to view it as a financial tool that allows your firm, or project, to be financially successful , if only for the reason that work in this area is both capital , and people, intensive. Governments, and in particular the Ontario government have supported this sector… shall we say… big time. That has allowed Canadians to gain international prominence for work in digital and transmedia efforts.

The work done in this area of entertainment allows Canadian firms and projects to be recognized as well as capitalize on individual projects. The ability for the work done inside the digital media tax credits allows firms and projects to maximize revenue as well as gain critical acclaim.

Many firms ( but not all as we shall soon see ) that apply for the credit are early stage firms and cannot qualify for any other type of financing, much less Canadian chartered bank loans or credit facilities. They need the financing acquired under ‘ OIDMTC’ credits to attract human capital and stay competitive with international competitors.

Smaller firms in particular have trouble achieving financing solutions for their work and traditional VC or Private Equity financing is more often than not totally unavailable in this sector of the market, notwithstanding the fact that out of some very small companies emerge some major firms over time. Experts tell us that over 4 Billion dollars in revenue is generated by Canadian firms in digital media in recent years.

What types of firms are in this sector and qualify for Digital interactive media credits? They include those in film, social media, mobility offerings, gaming, etc.

A CHANGE HAS COME IN ONTARIO: Recently introduced legislation in the province of Ontario has dramatically changed who can qualify for the Digital Media Tax Credit. That change has mandated that the credit can only be utilized for ‘ entertainment/educational products for children under 12 years old ‘! This has eliminated many applicants such as newspapers, mfg companies, insurance firms, and yes… even banks! who have utilized the program for developing ‘ apps ‘ and other digital media offerings?

The digital interactive tax credits provide an approximate 40% refundable credit on all work such as labor and marketing. In 2014 the Ontario govt paid out almost 90 million dollars of this tax credit… with that number seeming to grow all the time! Industry experts in Ontario indicate that amt may be cut in half. The credit though remains very competitive with those offered in Quebec and B.C.

So what’s our bottom line?film and media government canada tax credit bridge loans financingSimply that even though the game rules have changed in interactive credits, particularly in Ontario these credits are still 100% financeable. Financing for refundable interactive credits is structured as a bridge loan, with an advance of approx 70% of the total credit you have received. No payments are made for the duration of the loan and the loan is collapsed when the govt sends your refund chq.

If you’re interested in financing OIDTMC tax credits seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your refundable tax credit financing needs.

7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653



Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

‘ Canadian Business Financing With The Intelligent Use Of Experience ‘

7 Park Avenue Financial
Canadian Business Financing