British Columbia interactive digital media tax credit

• Refundable tax credit of 17.5% for eligible salaries and wages incurred before September 1, 2025.
• Refundable tax credit increases to 25% for eligible salaries and wages incurred after August 31, 2025.
• Credit is first applied against total income tax payable; any remaining amount is refunded to the corporation.
• No carry-back or carry-forward provisions for unused credits.

• The applicant must be a registered corporation.
• The corporation must be registered with the British Columbia Ministry of Finance for the Interactive Digital Media Tax Credit program and must pay the application fee.
• The project must involve the development of interactive digital media products intended to be used interactively by individuals.
• The interactive digital media product must be developed in British Columbia.

Who is eligible?

• Eligible registered corporations developing interactive digital media products
• Corporations producing video games
• Companies creating educational software
• Businesses developing edutainment products
• Corporations creating simulators

Who is not eligible

• Companies developing products that enable gambling with currency.
• Businesses producing non-interactive digital products, such as blogs, online magazines, or newspapers.
• Organizations creating media products like slide shows, videos, PowerPoint presentations, or video streaming applications.
• Companies focused on social media products that are not interactive digital media as defined by the program.

Eligible expenses

• Eligible salary and wages incurred in the development of interactive digital media products.

Eligible geographic areas

• British Columbia

• Step 1: Register with the Ministry of FinanceRegister your corporation with the British Columbia Ministry of Finance for the Interactive Digital Media Tax Credit.
• Pay the required application fee during the registration process.
• Step 2: Prepare Claim DocumentationCompile all records of eligible salary and wage expenses incurred during the tax year.
• Ensure you complete Schedule 429, British Columbia Interactive Digital Media Tax Credit.
• Enter the amount of the credit on line 680 of Schedule 5, Tax Calculation Supplementary – Corporations.
• Step 3: Submit Tax Credit Claim to CRAInclude Schedule 429 and Schedule 5 with your T2 Corporation Income Tax Return.
• Submit the completed tax return and supporting schedules to the Canada Revenue Agency.
• Ensure submission is no later than 18 months after the end of the tax year in which the eligible salaries and wages were incurred.

• The tax credit is fully refundable but is first applied against the total corporate income tax payable.
• There are no carry-back or carry-forward provisions for unused credits.
• Claims must be made with the Canada Revenue Agency no later than 18 months after the end of the relevant tax year.
• Effective September 1, 2024, products that enable gambling with currency are not eligible for the credit.