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Interactive digital media tax credit (B.C.)
Tax credit for interactive digital media in British Columbia
Last Update: March 6, 2026
Funding available
Up to 17.5% of project cost
Timeline
- Open continuously
Location
British Columbia, Canada
Overview
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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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop a new product or service
Eligible Funding
- Up to 17.5% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Information and cultural industries
Location
- British Columbia
Legal structures
- For-profit business
Annual revenue
- $ 9,000,000 maximum revenue
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
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.
Eligibility
Who is eligible?
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.Who is not eligible
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.
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.
Eligible geographic areas
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.
Additional information
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.
Contacts
Frequently Asked Questions about the Interactive digital media tax credit (B.C.) Program
Here are answers to the most common questions about the Interactive digital media tax credit (B.C.). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Interactive digital media tax credit (B.C.)?
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.
How much funding can be received?
Interactive digital media tax credit (B.C.) Funds up to 17.5% of admissible expenses.
Who is eligible for the Interactive digital media tax credit (B.C.) program?
To be eligible for the Interactive digital media tax credit (B.C.) program, you must:
The corporation must be registered and operate in British Columbia.
The corporation must develop eligible interactive digital media products.
What expenses are eligible under Interactive digital media tax credit (B.C.)?
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.
Who can I contact for more information about the Interactive digital media tax credit (B.C.)?
You can contact Government of British Columbia (BC) by email at itbtaxquestions@gov.bc.ca.
Where is the Interactive digital media tax credit (B.C.) available?
The Interactive digital media tax credit (B.C.) program is available the province of British Columbia.
Is the Interactive digital media tax credit (B.C.) a grant, loan, or tax credit?
Interactive digital media tax credit (B.C.) is a Tax Credits