April 15, 2019

Funding: Ontario Government – 2109 Budget Notes (Auto, Talent, Internship, Broadband, Music, Francophone, Video Game Developers

Ontario Budget 2019 Highlights

  • $40M for the Automotive Industry. Driving Prosperity is a 10-year plan to support the growth of the automotive sector. Under the plan, the Government will:
    • Launch a new Ontario Automotive Modernization Program (OAMP) to assist parts suppliers to adopt technology and become more productive, innovative, and export‐focused,
    • Enhance the Autonomous Vehicle Innovation Network (AVIN) and include a “wintertech” stream to test mobility products and services in severe winter weather conditions, and
    • Increase funding for AVIN’s TalentEdge Program to support internships and fellowships.
  • New Northern Ontario Internship Program. This new program will be open to university and college graduates, new workforce entrants, those transitioning to a new career, and the unemployed and underemployed. It will have two streams: the Northern Ontario Indigenous Internship and The Northern Ontario Skilled Labour Internship.
  • Francophone Community Grants Program Expansion. This Program will now include a focus on economic development opportunities within Francophone communities.
  • New Apprenticeship Program. The Government is planning a new program to support employers in training apprentices.
  • ONIP Expansion. The Ontario Immigrant Nominee Program (OINP) will support more occupations and will include a new technology sector stream.
  • New Broadband Strategy. The Province will release more details on its new Broadband and Cellular Strategy later this year. It will invest $315M over five years in regional and shovel-ready projects.
  • Ontario Music Fund Modernization. The fund will now focus on high-return activities and emerging talent.
  • Streamlined Support for Video Game Developers. The annual labour expenditure threshold under the Ontario Interactive Digital Media Tax Credit (OIDMTC) will be lowered from $1M to $500k so that more companies can apply annually rather than applying separately for every product.
  • OITC Review. The effectiveness of the Ontario Innovation Tax Credit (OITC), an 8% tax credit on R&D expenditures for SMEs, will be reviewed.
  • $3.8B in Lower Corporate Income Taxes. The Ontario Job Creation Investment Incentive will lower the average marginal effective tax rate from 16% to 12.6%. The Incentive includes an immediate 100% write-off for manufacturing and processing machinery and equipment and for clean energy equipment, as well as an accelerated write-off for other assets. These measures are in place for assets acquired after Nov. 20, 2018, and will be phased out from 2024 to 2027.