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British Columbia interactive digital media tax credit
Refundable support for interactive digital media developers
Funding available
Up to 25% of project cost
Deadline
Open continuously
Location
British Columbia, Canada
Overview
This refundable tax credit supports taxable Canadian corporations with a permanent establishment in British Columbia that develop interactive digital media and meet the registration requirement for the tax year. It provides 25% on net eligible salary and wages incurred after August 31, 2025, and 17.5% before September 1, 2025, after designated assistance.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop a new product or service
Eligible Funding
- Up to 25% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- British Columbia
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Startups
Next Steps
1
Determine your project
Availability timeline
2026
Periods: 1
Activities funded
- Development of interactive digital media products
- Provision of eligible activities tied to interactive digital media development
Documents Needed
- Schedule 429, British Columbia Interactive Digital Media Tax Credit
- T2 Corporation Income Tax Return
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
Interactive digital media tax credit updated
The legislation supporting the interactive digital media tax credit was updated to June 30, 2026, and the regulation now reflects changed credit amounts, formulas, and a new Part 7.1 for manufacturing and processing investment tax credit.
The supporting legislation page for the interactive digital media tax credit is now current to June 30, 2026, instead of March 24, 2026. The regulation source also shows changed tax-credit amounts and formulas, plus a repeal of Part 7 and the addition of a new Part 7.1 for the manufacturing and processing investment tax credit. The main program page still shows the same 25% rate for eligible salary and wages incurred after August 31, 2025 and 17.5% before September 1, 2025, so the update is concentrated in the legislative materials rather than the program overview.
Program guide
Application form
Eligibility
Who is eligible?
- Taxable Canadian corporations
- Corporations with a permanent establishment in British Columbia
- Corporations registered under part 2 of the Small Business Venture Capital Act
Who is not eligible
- Corporations that claimed the B.C. SR&ED tax credit for the tax year
- Corporations exempt from tax under section 27 of the Income Tax Act (British Columbia) or Part I of the federal Income Tax Act
- Labour-sponsored venture capital corporations, employee share ownership plan corporations, employee venture capital corporations, and small business venture capital corporations
- Corporations controlled directly or indirectly by one or more of those corporations
- Personal services businesses
Eligible expenses
- Eligible salary and wages directly attributable to eligible activities
- Eligible salary and wages incurred by the corporation during the tax year
- Eligible salary and wages paid to an individual who was a resident of British Columbia on December 31 of the year preceding the tax year for which the credit is claimed
- Amounts included in the cost or capital cost of property for the corporation in the tax year, or deductible in computing the corporation’s income for the tax year as expenses incurred or made
Ineligible Costs and Activities
- Marketing, human resource, administrative support, and management activities
- Contractor and subcontractor payments
- Stock options and certain specified employee amounts
- Products that enable gambling with currency
How to apply
- Download and save the accessible fillable PDF to your computer.
- Open the downloaded PDF in Acrobat Reader 10 or later.
- Complete Schedule 429 and send it within 18 months after the end of the tax year in which the eligible salary and wages were incurred.
- Attach a completed copy of Schedule 429 to the T2 Corporation Income Tax Return.
Processing and Agreement
- Late-filed Schedule 429 forms will not be processed.
Additional information
- The credit is fully refundable.
- There are no carry-back or carry-forward provisions.
- Late-filed tax credit forms will not be processed.
- Claims are filed with the T2 Corporation Income Tax Return.
Contacts
Frequently Asked Questions about the British Columbia interactive digital media tax credit Program
What is the British Columbia interactive digital media tax credit?
This refundable tax credit supports taxable Canadian corporations with a permanent establishment in British Columbia that develop interactive digital media and meet the registration requirement for the tax year. It provides 25% on net eligible salary and wages incurred after August 31, 2025, and 17.5% before September 1, 2025, after designated assistance.
How much funding can be received?
British Columbia interactive digital media tax credit Funds up to 25% of admissible expenses.
What is the deadline to apply?
The program is accepting continuous intake
Who is eligible for the British Columbia interactive digital media tax credit program?
To be eligible for the British Columbia interactive digital media tax credit program, you must:
Registered with the B.C. Ministry of Finance for the tax year
Have a permanent establishment in British Columbia and be a taxable Canadian corporation throughout the tax year
Meet the eligible salary and wages thresholds and business activity test
What expenses are eligible under British Columbia interactive digital media tax credit?
Eligible salary and wages directly attributable to eligible activities
Eligible salary and wages incurred by the corporation during the tax year
Eligible salary and wages paid to an individual who was a resident of British Columbia on December 31 of the year preceding the tax year for which the credit is claimed
Amounts included in the cost or capital cost of property for the corporation in the tax year, or deductible in computing the corporation’s income for the tax year as expenses incurred or made
Who can I contact for more information about the British Columbia interactive digital media tax credit?
You can contact Canada Revenue Agency (CRA) by email at ITBTaxQuestions@gov.bc.ca or by phone at 250-387-3332.
Where is the British Columbia interactive digital media tax credit available?
The British Columbia interactive digital media tax credit program is available the province of British Columbia.