Ontario has opened the way for local producers to receive a tax rebate on development costs incurred on scripted film and TV series.

The one-year $10 million Intellectual Property Development Fund will refund 30% of costs up to $150,000 absorbed by indie producers to possibly get screen-based content into production and marketing.

Ontario producers may also receive a 10% bonus up to $20,000 for expenditures made between March 31, 2009 and March 31, 2010.

Eligible projects include TV series, film, mobile content, video games and Internet properties. Producers can also claim corporate overhead costs to support development activities.

The aim of the pilot effort, says Jennifer Blitz, director of tax credits at the Ontario Media Development Corporation, is to get film and TV projects closer to principal photography and interactive media to the prototype or market-ready stage.

At the same time, Blitz says developed content need not end up on a small or big screen, nor is any broadcast or distribution trigger required, before a producer can apply to the early-stage development fund.

‘We’re not expecting that everything they [producers] develop goes into production,’ she says. Instead, the OMDC wants to help Ontario producers grow their development slates so content with the most commercial potential can eventually get to market at home and abroad.

The OMDC will begin accepting applications for the new fund in January and could begin paying out on claims as early as February.

Indie producers will need to have incurred $30,000 in early-stage development costs to apply to the OMDC-directed fund. Non-scripted talk shows, news and current affairs programming and reality TV series will initially be excluded. Also excluded from accessing the fund are broadcasters and content aggregators, as the OMDC looks to underwrite producers who secure most of their revenues from content creation and hold at least 51% of the IP rights.

Blitz says the pilot development fund will mirror existing OMDC tax-credit funds in favoring script-based projects.

Indie producers will be able to claim tax rebates for development activities that range from optioning or acquiring story rights, storyboarding or packaging a TV pilot, to creating a series bible and script, including redrafts, and pitching potential financiers at markets.

Blitz says the OMDC did not draw up an exhaustive list of eligible projects as it looks to reward innovation.

‘We’re trying to get away from silos, and look for the synergies and similarities that come when developing content for a screen at a movie theater or on a BlackBerry,’ Blitz says.

She adds producers don’t have to prove they’re tackling a new digital media challenge when tapping the new fund, as is required when producers access the existing federal and provincial Scientific Research and Experimental Development tax credits.

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