Canada: Corporate tax credit provisions enacted (Ontario)

Canada: Corporate tax credit provisions enacted

Ontario's Bill 229 received Royal Assent on 8 December 2020, and among other measures, enacts several corporate income tax changes announced in Ontario's 2020 budget to adjust deadlines and other requirements for certain tax credits.

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The legislative measures include the following:

  • Ontario interactive digital media tax credit—Bill 229 temporarily allows eligible labour expenditures for the Ontario interactive digital media tax credit to be incurred during the 61-month period prior to product completion (up from 37 months). This relief applies for products that are completed after 14 March 2020, and for which eligible labour expenditures were incurred in the 2020 tax year.
  • Ontario book publishing tax credit—Bill 229 temporarily waives the eligibility requirement for the Ontario book publishing tax credit that a literary work must be published in a bound edition of at least 500 copies. This relief applies to literary works published in 2020 or 2021.
  • Other tax measures—Bill 229 also includes some of the other tax measures included in Ontario's 2020 budget, including making permanent the 2020 increase to $1 million* for the Employer Health Tax exemption threshold and introducing the new seniors' home safety tax credit.

*$=Canadian dollar

Read a December 2020 report prepared by the KPMG member firm in Canada

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