"To infinity, and beyond!"

Toy Story's Buzz Lightyear made the phrase his own, but the Ontario government could use it to describe the spirit of changes it's making in the tax credit regime for film, tv and new media projects produced in this province. The changes for new media are in the "infinite" realm of the Internet, and the tax credit changes will encourage producers to shoot in locations "beyond" Greater Toronto.

On the new media front, the budget promises to invest $30 million over five years "for the creation of the Ontario Media Development Corporation, which will assume the functions of the Ontario Film Development Corporation and the administration of tax credits from the Ministry of Citizenship, Culture and Recreation."

One of these credits is the Ontario Interactive Digital Media Tax Credit, which the government is expanding. The credit refunds 20% of a company's cost in creating in Ontario "original interactive digital media products." The budget extends this credit to include up to $100,000 of qualifying marketing and distribution expenses directly related to an eligible interactive digital media product. Qualifying expenses include the costs of attending trade shows to promote the product, preparing the product for display, advertising it, or making it available to consumers through distribution networks.

With a view to moving Ontario location shooting beyond Greater Toronto, the budget offers regional bonuses.

For the Ontario Film and Television Tax Credit (ofttc), a 20% refundable tax credit available to Ontario-based, Canadian-controlled production companies producing eligible productions in Ontario, the budget offers a 10% bonus on Ontario labor expenses incurred after budget day (May 2).

For the Ontario Production Services Tax Credit (opstc), an 11% refundable tax credit on the Ontario labor costs of foreign-based and domestic productions not claiming the ofttc, the budget proposes a 3% bonus on location shooting done beyond the gta.

However, both bonuses would only apply to productions that have at least five location days in Ontario and at least 85% of location days in Ontario outside the gta.

By comparison, b.c. offers a 20% tax credit for domestic shoots by b.c.-based companies and a 12.5% bonus for location shoots done outside Greater Vancouver. The tax credit for foreign productions or provincial productions not claiming the 20% credit is also 11% in b.c.

At press time, b.c. was reviewing a regional bonus for foreign-based producers shooting outside Vancouver.

www.gov.on.ca:80/FIN/english/budeng.htm