dmtc_benefits_02

The table below summarizes the provinces with digital media tax credit programs along with a brief set of requirements and funding or tax benefits.

Description Requirements
British Columbia Interactive Digital Media Tax Credit

Worth 17.5% of eligible labour costs
Company must be established in British Columbia.

Wages/salaries for the taxation year must exceed $100,000. Interactive digital media must educate/inform/entertain through two of the three types of information: text, sound, or images.
British Columbia Digital Animation or Visual Effects Tax Credit

Worth 17.5% of eligible labour costs
Company must be established in British Columbia.

Part of the British Columbia Film and Television Tax Credit and can only be claimed in conjunction with the “basic tax credit” of the Film and Television credit.
British Columbia New Media Venture Capital Tax Credit

Worth 30% of investment when purchasing shares of eligible business corporation
Part of the British Columbia Venture Capital Tax Credit but targeted specifically at the “new media” industry. The EBC must have no more than 100 employees, and 75% of wages must go to BC residents. Interactive media must educate/inform/entertain through two of the three types of information: text, sound, or images.
Manitoba Interactive Digital Media Tax Credit

Worth 40% of eligible labour costs
Company must be established in Manitoba. Interactive digital media consists of software and digital format files which are used interactively by the user and presents information through sound, text, and/or images. At least 25% of salaries/wages must go to Manitoba residents. Maximum of $1,250,000 of eligible labour costs can be claimed per project.
New Brunswick Digital Media Development Program

Worth 30% of eligible labour costs
Company must be established in New Brunswick. Must develop game engines or games with entertainment/serious gaming applications. Annual gross revenues cannot exceed $20 M and total assets cannot exceed $10 M during preceding taxation year. Cannot just be in research stage, must be in advanced development.
Nova Scotia Digital Media Tax Credit

Worth 50% of eligible labour costs or 25% of total expenditures
Company must be established in Nova Scotia. Must not be a prescribed labour-sponsored venture capital corporation. At least 25% of salaries/wages in the taxation year must go to Nova Scotia residents. Maximum of $100,000 of eligible labour costs can be claimed per project. Expenditures may be made outside the province. Interactive digital media must educate/inform/entertain through two of the three types of information: text, sound, or images.
Ontario Interactive Digital Media Tax Credit

Worth 40% of eligible labour costs and a maximum of $100,000 in marketing/distribution expenditures
Company must be established in Ontario. Large game companies can apply as a Specialized Digital Game Corporation or a Qualifying Digital Game Corporation. At least 90% of eligible interactive digital media products must be developed by the applicant in Ontario. Interactive media must educate/inform/entertain through two of the three types of information: text, sound, or images.
Ontario Computer Animation and Special Effects Tax Credit

Worth 20% of total labour costs
Company must be established in Ontario. Qualifying corporations may include animation or visual effects houses, post-production houses and film and television production companies which perform eligible computer animation and special effects activities.
PEI Innovation and Development Labour Rebate

Worth 37.5% of eligible labour costs
Company must be established in PEI. Carries on business within industrial sector and develops or innovates products. Eligible productions are created for commercial exploitation. Wages/ salaries must be paid to PEI residents (w/out ownership interest) at annual min. gross wage of $30,000 per position.
Quebec Multimedia Production Tax Credit

Worth up to 30% of eligible labour costs. Additional 7.5% credit for costs related to French language translation/production.
Company must be established in Quebec. Titles must be published electronically, be run using software that supports interactivity, and substantially contain three of the four types of information: text, sound, still images and animated images. (Video images are considered as only one media component.)

Digital animation films associated with an eligible multimedia title are also eligible. However, the labour expenditure related to the main multimedia title with which the related title is associated must be at least $1million.
Quebec Computer Animation and Special Effects Tax Credit

Worth 20% of eligible labour and production costs
Must be eligible for Quebec Film and Television Production Tax Credit or Quebec Production Services Tax Credit (unless not qualifying because of cost minimums). Must perform computer animation and special effects or shoot in front of a chromatic screen.