Ontario 2008 Budget: Limited Tax Breaks For The Tech Space

On March 25, 2008, Ontario released its budget. Budget measures relevant to technology companies and their investors include a limited 10-year corporate tax holiday, the Ontario Innovation Tax Credit and the Ontario Interactive Digital Media Tax Credit.

10-Year Corporate Tax Holiday (Commercialization Activities)

The budget proposes a 10-year tax exemption for new corporations that commercialize intellectual property (IP) developed by qualifying Canadian universities, colleges or research institutes.

Qualifying corporations established after March 24, 2008 and before March 25, 2012 would be exempt from Ontario corporate income tax and corporate minimum tax for their first 10 taxation years. The exemption would apply to corporations incorporated in Canada that derive all or substantially all of their income from eligible commercialization activities carried on in Ontario. Such activities