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.

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Eligible projects or activities for the Interactive Digital Media Tax Credit include:

Developing video games
Creating educational software
Producing edutainment products
Designing simulators

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$26,250

Vancouver

Developing an educational video game to teach children math skills.

$35,000

Burnaby

Creation of an edutainment app to promote environmental awareness among teenagers.

$52,500

Surrey

Designing a flight simulator for pilot training programs.

$43,750

Richmond

Developing an interactive health education platform for senior citizens.

$30,625

Kelowna

Creation of an interactive art therapy software for mental health support.

$38,500

Victoria

Development of a digital media training program for underserved communities.

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Below are the eligibility criteria for the Interactive Digital Media Tax Credit (IDMTC):

Registered corporations developing interactive digital media products
Incurred eligible salary and wages before September 1, 2028

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Eligible companies for the Interactive Digital Media Tax Credit in Canada are registered corporations that develop interactive digital media products. They must meet specific criteria outlined by the program.

Registered corporations
Developers of interactive digital media products

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There are specific types of companies that are not eligible for the interactive digital media tax credit in Canada.

Companies developing products enabling gambling with currency

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Eligible expenses for the grant include eligible salary and wages incurred in the tax year and must be developed in British Columbia.

Eligible salary and wages
Costs incurred in developing the eligible interactive digital media product

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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.

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Register with the Ministry of Finance and pay the application fee
Claim the credit with the Canada Revenue Agency (CRA) no later than 18 months after the end of the tax year end

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itbtaxquestions@gov.bc.ca

Apply to this program

Interactive Digital Media Tax Credit (IDMTC)

Interactive Digital Media Tax Credit Program in British Columbia

The Interactive Digital Media Tax Credit (IDMTC) in British Columbia is a program designed to support eligible corporations that develop interactive digital media products. The credit is calculated as 17.5% of eligible salary and wages incurred in the tax year, and it is available for eligible salary and wages incurred before September 1, 2028. To claim the IDMTC, corporations must register with the Ministry of Finance and pay the application fee, and then submit the claim with the Canada Revenue Agency (CRA) no later than 18 months after the end of the tax year in which the eligible salaries and wages were incurred. The credit is fully refundable but is first applied against total income tax payable without any carry-back or carry-forward provisions. An interactive digital media product (IDM product) is an essential component of the IDMTC program, and it is defined as a product primarily designed to educate, inform, or entertain users interactively. IDM products encompass a range of applications like video games, educational software, and simulators, but exclude certain types of content like online magazines, blogs, and video streaming applications. Moreover, Budget 2024 introduced a restriction that products enabling gambling with currency would no longer qualify as interactive digital media products. The IDMTC supports not only traditional interactive media but also extends to augmented reality (AR) and virtual reality (VR) products that meet specific IDM product requirements. These AR/VR products provide immersive and interactive experiences for users, offering unique applications like aerodynamic modelling design tools, educational exhibits, and simulations. Eligibility for AR/VR products is determined by their interactivity, educational or entertaining nature, and adherence to IDM product criteria. In cases of disagreement with registration decisions, corporations have the option to seek reconsiderations from the BC Commissioner of Income Tax, followed by an appeal process in the Supreme Court within 120 days of receiving a notice from the Commissioner. The Interactive Digital Media Tax Credit program is governed by relevant legislation such as the Income Tax Act (B.C.) Part 10, Interactive Digital Media Tax Credit Regulation, and Order in Council 268, outlining the framework for claiming and managing the tax credit. For more information on the IDMTC program, including registration requirements, product eligibility criteria, and claiming procedures, corporations can contact the Ministry of Finance in Victoria or reach out to Canada Revenue Agency for inquiries related to tax credit claims. The IDMTC aims to foster innovation and growth in the digital media sector by providing financial incentives to corporations developing interactive and engaging digital products in British Columbia.

Interactive digital media tax credit (B.C.)

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