New Brunswick Digital Media Tax Credit
- Closing date : May 17, 2024
Overview
Refundable tax credit of 50% for local labour costs or 25% of total funds spent in Nova Scotia in the development of an interactive digital media product.
At a glance
Funding available
- Increase performance through digital transformation
- Develop a new product or service
- Launch or market a product/service
- Up to 30% of project cost
- Closing date : May 17, 2024
Eligible candidates
- Information and cultural industries
- Nova Scotia
- All legal structures
- All revenue ranges
- All organization sizes
- Canadians
Next Steps
Activities funded
The Nova Scotia Digital Media Tax Credit supports the creation and development of eligible interactive digital media products within the province. These products are designed to educate, inform, or entertain users by providing an interactive experience through the combination of application and data files in a digital format.
- Development of video games that allow users to control actions and engage interactively with the game environment.
- Creation of educational software that adapts to a user's learning style and provides tailored feedback based on user interaction.
- Production of informational products that offer users interactive means to engage with content through text, sound, and images.
- Development projects that qualify for an additional bonus by being situated within eligible geographic areas of Nova Scotia.
Eligibility
Who is eligible?
The Nova Scotia Digital Media Tax Credit (DMTC) is available to corporations developing interactive digital media products, provided they meet certain criteria established by the Nova Scotia Department of Finance and Treasury Board.
- Corporations must be taxable Canadian corporations as defined by Canadian tax legislation.
- Corporations need to have a permanent establishment within Nova Scotia.
- The corporation must not be designated as a prescribed labour-sponsored venture capital corporation.
- The control of the corporation can be either by foreign or Canadian entities, with no restrictions on size.
- The corporation must own the rights to the developed product or be authorized by the owner to use them.
Who is not eligible
This grant is not available to certain companies and industries based on their main activity and status. The restrictions are in place to focus support on specific eligible products and uses of technology.
- Labor-sponsored venture capital corporations as prescribed under the Income Tax Act (Canada).
- Companies developing operating systems or application software such as word processing or spreadsheets.
- Businesses creating products for interpersonal communications, like cell phone or email software.
- Organizations producing products primarily for advertising, selling, or promoting goods and services.
- Companies involved in creating products contrary to public policy, such as those with pornographic content or inciting hatred.
Eligible expenses
Eligible projects for the Nova Scotia Digital Media Tax Credit focus on the creation of interactive digital media products with the primary purpose of educating, informing, or entertaining users. These projects must involve the development of digital applications that enable user interaction with the content.
- Development of video games that allow user control and interaction.
- Creation of educational software providing adaptive learning experiences.
- Production of informational applications that engage users through interactive features.
Eligible geographic areas
The eligible geographical areas for the Nova Scotia Digital Media Tax Credit include regions outside the Halifax Regional Municipality. Eligible businesses must have a permanent establishment in these designated areas.
- Everywhere in Nova Scotia except within thirty kilometers driving distance from Halifax City Hall in the Halifax Regional Municipality.
Additional information
The Nova Scotia Digital Media Tax Credit offers a refundable tax credit for eligible corporations developing interactive digital media products within Nova Scotia. It includes eligibility criteria, applications processes, and restrictions on product types and expenditures that qualify for the credit.
- The DMTC is not available for products primarily used as an operating system, application software, or for interpersonal communications.
- Products used primarily to present, promote, or sell goods or services are not eligible for the tax credit.
- Expenditures that can be claimed for Scientific Research and Experimental Development Tax Credit or Film Industry Tax Credit are not eligible for the DMTC.
- The eligible geographic area excludes areas within thirty kilometres driving distance from Halifax City Hall in the Halifax Regional Municipality.
- Part A applications provide an advanced ruling on eligibility but do not guarantee final approval.
- Applications must be submitted within thirty months of the end of the taxation year in which expenses were incurred.
- There are no administration fees required for processing DMTC applications.
- The Minister of Finance and Treasury Board may revoke tax credit certificates if the product is not completed within 36 months or if compliance issues arise.
- Corporations may recognize provincial contribution using "Produced with the assistance of the Nova Scotia Digital Media Tax Credit".