Interactive digital media tax credit (B.C.)
BC, Canada
Tax credit for interactive digital media in British Columbia
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Information and cultural industries
grant_single|grantors
- Government of British Columbia
grant_single|status
grant_card_status|open
grant_single_labels|preview
Corporations that develop interactive digital media products in BC after August 31, 2010 and before September 1, 2028 receive 17.5% of eligible salary and wages incurred in the tax year.
grant_single_labels|projects
This grant is available to companies located specifically in British Columbia, Canada, as mandated by the funding criteria. Eligible IDM products must be developed within this region to qualify for the grant.
- British Columbia, Canada
grant_single|admissibleProjectsExample
$26,250
Developing an educational video game to teach children math skills
$52,500
Designing a flight simulator for pilot training programs
$30,625
Creation of an interactive art therapy software for mental health support
$35,000
Creation of an edutainment app to promote environmental awareness among teenagers
$43,750
Developing an interactive health education platform for senior citizens
$38,500
Development of a digital media training program for underserved communities
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the company's status and the nature of its products.
- The company must be an eligible registered corporation.
- The company must incur eligible salary and wages before September 1, 2028.
- The company must develop interactive digital media products.
- The interactive digital media products must not enable gambling with currency after September 1, 2024.
- The interactive digital media products must be developed in British Columbia.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Interactive Digital Media Tax Credit are registered corporations that are developing interactive digital media products in British Columbia. These corporations must incur eligible salary and wages expenses and intend to use the products interactively. Ineligible products include those not meant for interactive use, such as blogs, online magazines, or products enabling gambling with currency post-September 2024.
grant_eligibility_criteria|who_cannot_apply
The interactive digital media tax credit has specific exclusions that prevent certain companies and industries from qualifying. These restrictions ensure the grant supports the intended interactive digital media sector.
- Companies involved in gambling activities using currency, effective from September 1, 2024.
- Industries producing non-interactive digital products, such as blogs, online magazines, or videos.
- Organizations creating social media products or video streaming applications.
- Businesses developing AR/VR experiences that do not offer interactive user input and feedback.
grant_eligibility_criteria|eligible_expenses
The Interactive Digital Media Tax Credit (IDMTC) supports projects focused on developing interactive digital media products designed for user interaction. These projects must integrate application files with data files in digital formats and be developed in British Columbia.
- Development of video games intended for interactive user engagement.
- Creation of educational software that educates or informs users interactively.
- Design of edutainment products offering both educational and entertainment value.
- Production of simulators that provide interactive simulation experiences.
- Creation of eligible augmented reality (AR) and virtual reality (VR) products that meet specific interactive design criteria.
grant_eligibility_criteria|zone
The eligible expenses involve salary and wages directly associated with the development of the interactive digital media product.
- Eligible salary and wages incurred before September 1, 2028.
grant_single_labels|criteria
The Interactive Digital Media Tax Credit (IDMTC) in British Columbia has set evaluation and selection criteria for eligible corporations. To qualify, corporations must meet specific requirements related to the nature of their interactive digital media products.
- Corporations must develop interactive digital media products that are designed primarily to educate, inform, or entertain users.
- The products must consist of a combination of application files and data files in a digital format and be developed in British Columbia.
- Products that enable gambling with currency are not eligible for the IDMTC.
- The interactive digital media products must be interactive and present information in at least two of the following forms: text, sound, images.
grant_single_labels|register
- Step 1: Register with the Ministry of Finance
- Ensure your corporation is eligible by confirming it develops interactive digital media products in British Columbia.
- Complete the registration process with the Ministry of Finance.
- Pay the required application fee.
- Step 2: Prepare Tax Credit Claim
- Calculate the tax credit based on 17.5% of eligible salary and wages incurred before September 1, 2028.
- Complete Schedule 429, British Columbia Interactive Digital Media Tax Credit.
- Enter the calculated credit amount on line 680 of Schedule 5, Tax Calculation Supplementary – Corporations.
- Step 3: Submit Tax Credit Claim to CRA
- Include both completed Schedule 429 and Schedule 5 with your T2 Corporation Income Tax Return.
- Submit these documents to the Canada Revenue Agency (CRA) no later than 18 months after the end of the tax year in which the eligible expenses were incurred.
- Step 4: Await Confirmation and Reconsiderations
- After submission, await feedback or confirmation from the CRA regarding your claim.
- If necessary, prepare for any reconsiderations with the BC Commissioner of Income Tax if there are disagreements with decisions made.
- Be aware of the 120-day period to appeal decisions at the Supreme Court.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The IDMTC is fully refundable but is first applied against the corporation's total income tax payable.
- There are no carry-back or carry-forward provisions for this credit.
- Corporations must complete Schedule 429 and enter the amount on line 680 of Schedule 5 when submitting the T2 Corporation Income Tax Return.
- Products that enable gambling with currency will not qualify as IDM products effective September 1, 2024.
- Reconsiderations of decisions can be brought to the BC Commissioner of Income Tax if registration is refused or canceled.
- Appeals must be made to the Supreme Court within 120 days if disagreed with any decisions provided by the BC Commissioner of Income Tax.
grant_single_labels|contact
itbtaxquestions@gov.bc.ca
Apply to this program
Navigate the Interactive Digital Media Tax Credit
The Interactive Digital Media Tax Credit (IDMTC) offers a substantial opportunity for registered corporations developing eligible digital media products in British Columbia. With a 17.5% credit on eligible salaries and wages, businesses can significantly reduce tax burdens while fostering innovation within the interactive media sector.
Understanding the Interactive Digital Media Tax Credit and Its Benefits
The Interactive Digital Media Tax Credit (IDMTC) is a pivotal financial mechanism designed to bolster the burgeoning digital media industry in British Columbia. This credit specifically targets registered corporations that are engaged in the creation of interactive digital media products, offering them a 17.5% refundable tax credit on eligible salaries and wages. This initiative supports the development of products that are principally designed to educate, inform, or entertain users through interactive digital formats, featuring text, sound, images, and interactivity.The IDMTC not only fosters innovation by mitigating financial risk but also encourages the growth of creative projects that require significant investments in human capital. Since the credit is fully refundable yet deducted from income tax owed, companies can maximize their cash flow to reinvest in talent, training, and development, ensuring sustainable growth and enhanced competitiveness on a global scale.Eligible products under this credit must meet specific interactive criteria, as non-interactive applications like static blogs or online magazines do not qualify. The credit purposely excludes products that enable gambling with currency, a strategic decision aimed at reinforcing ethical and socially beneficial applications of digital media technology.To access this financial benefit, eligible corporations need to adhere to a defined process managed by both the British Columbia Ministry of Finance and the Canada Revenue Agency (CRA). The required steps include formal registration with the Ministry and the submission of claims to the CRA within a strict timeframe—18 months post the fiscal year in which the eligible expenditures are incurred. This disciplined timeline ensures that only committed and compliant firms benefit from this fiscal incentive.One of the exemplary applications of the credit can be seen in virtual and augmented reality projects that push the boundaries of interactive design. Eligible projects, like an AR-based aerodynamic modelling tool, demonstrate the innovative potential supported by the IDMTC—where users can manipulate 3D designs in real-time, offering both educational and practical industrial applications. Conversely, non-eligible projects such as static AR museum exhibits remind firms of the need to prioritize user interaction and functional interactivity in their design approaches.Reconsiderations and appeals processes are carefully structured to ensure fairness and transparency, allowing corporations to challenge decisions they find unfavorable. Disputes are initially reviewed by the BC Commissioner of Income Tax, with further appeals permissible within the Supreme Court timeframe of 120 days, ensuring that businesses have ample opportunity to advocate for their rightful entitlements.Ultimately, the IDMTC is a powerful tool for fostering innovation, attracting talented creatives and developers to British Columbia, and encouraging the expansion of a vibrant digital media ecosystem. By aligning tax incentives with progressive content development, this credit underscores British Columbia’s commitment to promoting a technologically advanced and economically sustainable creative industry.
