How much funding can be received?

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|terms_and_conditions

The interactive digital media tax credit offers financial support through a refundable credit mechanism. This credit is designed to alleviate salary and wage expenditures for corporations involved in developing interactive digital media products within British Columbia.

The credit is calculated at 17.5% of eligible salary and wage expenses incurred within the tax year.
The tax credit is refundable, meaning it is processed after being applied against the total income tax payable by the corporation.
There are no provisions for carrying the credit backward or forward to other tax years.

grant_single_labels|projects

The Interactive Digital Media Tax Credit (IDMTC) supports projects that involve the development of interactive digital media products in British Columbia. Eligible activities primarily focus on creating products that educate, inform, or entertain users through interactive experiences.

Development of video games with interactive storytelling elements.
Creation of educational software aimed at interactive learning.
Production of edutainment products that combine education and entertainment.
Design of simulators for training or recreational purposes.
Development of augmented reality (AR) and virtual reality (VR) products that offer interactive experiences.

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

This grant is restricted to companies developing products within a particular Canadian province. Businesses eligible for this grant must demonstrate their operations align with the provincial development criteria.

Companies developing interactive digital media products in British Columbia.

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.