Manitoba — Interactive Digital Media Tax Credit
MN, Canada
Manitoba tax credit for digital media production
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
- Economic Development, Investment, Trade and Natural Resources
- Government of Manitoba
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grant_card_status|open
grant_single_labels|preview
Refundable corporate income tax credit of 40% of wages paid to Manitobans working on interactive digital media projects in Manitoba, up to a maximum of $500,000 per project.
grant_single_labels|projects
This tax credit is aimed at companies with a permanent establishment in Manitoba. Eligibility is region-specific to ensure local benefits and project alignment with provincial objectives.
- Corporations with a permanent establishment in Manitoba, Canada.
grant_single|admissibleProjectsExample
$192,000
Development of an e-commerce platform with AI-driven recommendations
$180,000
Creation of a mobile game with in-app purchases and downloadable content
$160,000
Development of a fitness tracking app with interactive challenges
$160,000
Enhancement of an existing weather forecasting app with new interactive features
$160,000
Creation of an interactive virtual museum experience
grant_single_labels|admissibility
Eligibility for this grant is determined by specific criteria related to the corporation and its expenditures.
- The company must be a taxable Canadian corporation with a permanent establishment in Manitoba.
- The company must either pay 25% of its salaries and wages to Manitoba residents or incur at least $1 million in qualifying Manitoba labour expenses annually to be eligible for the respective tax credit rates.
- The project must obtain a Certificate of Eligibility before proposed work begins.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Manitoba Interactive Digital Media Tax Credit include taxable Canadian corporations with a permanent establishment in Manitoba. To qualify for the tax credit at the specified rates, these corporations must meet certain conditions regarding residency and labour expenditure requirements. Specifically, the corporation must pay at least 25% of its salaries and wages to Manitoba residents to qualify for a 40% tax credit. Alternatively, corporations that pay less than 25% of their salaries to Manitoba residents can qualify for a 35% tax credit, provided they incur at least $1 million in qualifying Manitoba labour expenses annually. Furthermore, eligible products must be interactive digital media that is non-linear and participatory, such as video games or e-learning tools.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies and industries based on their product type and primary usage. The restrictions ensure that the funds are allocated towards projects that align with the digital interactivity criteria.
- Companies developing operating systems.
- Organizations focused on products primarily for interpersonal communication.
- Businesses creating promotional products.
- Developers of adults-only rated video games.
- Companies producing products for internal use.
- Entities developing products for the internal use of a non-arms-length purchaser.
grant_eligibility_criteria|eligible_expenses
Eligible projects for the Manitoba Interactive Digital Media Tax Credit are those that involve the development of interactive digital media products. These products must be non-linear and interactive, allowing users to engage with the media as participants rather than passive viewers.
- Development of video games.
- Creation of simulators.
- Production of multi-pathed, participatory e-learning products.
grant_eligibility_criteria|zone
The tax credit covers specific expenses related to the development of eligible interactive digital media products.
- Qualified labour expenditures directly involved in the development of interactive digital media products.
- Marketing expenses associated with promoting the developed products.
- Distribution expenses for bringing the interactive digital media products to market.
- Project related bonuses directly attributable to achieving project milestones.
- Employee benefits directly attributable to the project.
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for the Manitoba Interactive Digital Media Tax Credit grant. Eligibility and assessment include a review of various aspects such as corporate qualifications, project specifics, and compliance with labor expenditure requirements.
- Company must be a taxable Canadian corporation with a permanent establishment in Manitoba.
- The corporation must pay at least 25% of its total corporate annual salaries and wages to Manitoba taxpaying residents during the qualifying period or incur at least $1,000,000 in total cumulative eligible Manitoba labor expenses.
- The project must be for developing or enhancing an eligible interactive digital media product, primarily for commercial use.
- Products must provide non-linear, interactive media experiences involving at least two forms of media: text, sound, or images.
- Eligible expenses include development labor costs, marketing and distribution costs incurred after applying for a Certificate of Eligibility (COE).
- Labor expenses cannot be claimed if already covered by other government assistance unless specific exceptions apply.
- Marketing and distribution expenses are capped at $100,000 per product and must be directly attributable to the promotion of the eligible product.
- Qualifying project activities need a Certificate of Eligibility before expenses can be claimed, which reflects preliminary project eligibility and estimated tax credit amounts.
- Project status, scope, and budget changes must be documented through an Amended Certificate of Eligibility if they occur during project progress.
grant_single_labels|register
Here are the steps to apply for the Manitoba Interactive Digital Media Tax Credit:
- Step 1: Obtain Program Information and Application Materials
- Access and review the MIDMTC guidelines from the Government of Manitoba's website.
- Download the Certificate of Eligibility Application, MIDMTC Product Description Template, and other necessary forms.
- Step 2: Prepare Certificate of Eligibility Application
- Complete the MIDMTC Product Description Template to detail your interactive digital media product.
- Develop a Commercialization Plan using the provided template.
- Compile your budget utilizing the MIDMTC Budget Template.
- Gather all supporting documents, including the Declaration of MB Residency/Consent Form and the 3rd Party Declaration Form.
- Step 3: Submit Certificate of Eligibility Application
- Send the completed Certificate of Eligibility Application and all supporting documents to the Economic Programs Branch via email or mail.
- Address to: Economic Programs Branch, 1010 – 259 Portage Avenue, Winnipeg, MB R3B 3P4.
- Email submissions to: ecdevprograms@gov.mb.ca.
- Step 4: Await Review and Approval
- Wait for the Manitoba Economic Programs Branch to review your submission for eligibility.
- Receive the Certificate of Eligibility if your project qualifies.
- Step 5: Initiate Project Work
- Begin work on your interactive digital media product only after receiving the Certificate of Eligibility.
grant_single_labels|otherInfo
The Manitoba Interactive Digital Media Tax Credit has been adjusted in Budget 2023 to allow for more inclusive labour expenses:
- Expanded eligibility for labour expenditures now includes project-related bonuses and employee benefits directly attributable to the project.
- However, bonuses tied to profits or revenues, stock options, and signing bonuses remain ineligible under the tax credit.
grant_single_labels|contact
ecdevprograms@gov.mb.ca
204-945-2475
Apply to this program
Boost Your Digital Media Project with Manitoba's Tax Credit
The Manitoba Interactive Digital Media Tax Credit is a significant financial advantage aimed at stimulating growth in the province's digital media sector. It provides a 40% tax credit on qualified labor costs, helping businesses innovate and create jobs while enhancing economic growth.
Unpacking the Manitoba Interactive Digital Media Tax Credit
The Manitoba Interactive Digital Media Tax Credit (MIDMTC) stands as a pivotal initiative supporting the province's burgeoning digital media industry. Designed to incentivize economic development and job creation, the MIDMTC offers substantial benefits for qualifying businesses through its refundable tax credit mechanism. By providing up to a 40% credit on eligible labor, marketing, and distribution expenses, this program not only aids in ameliorating financial constraints but also catalyzes innovation and competitive disruption within the interactive digital media landscape.
Eligibility for the credit requires projects to involve interactive digital media that blend text, sound, or images and actively engage users beyond passive consumption. The nature of qualifying products, whether video games, simulators, or interactive e-learning materials, underscores the program's commitment to fostering creative and technological prowess in Manitoba. The emphasis on interactivity ensures that the funded projects push the envelope in terms of user engagement, offering experiences that are both entertaining and educational.
One of the pivotal enhancements introduced in Budget 2023 is the expanded definition of eligible labor costs. This adaptation acknowledges the evolving nature of compensation in the digital media domain, thereby embracing diverse forms of employee remuneration beyond traditional salaries. Project-related bonuses, direct employee benefits, and milestone-based incentives can now be considered in credit calculations, expanding opportunities for companies to effectively manage their financial planning and reward strategies.
The exclusion of certain projects—such as adults-only games, promotional products, and those intended for internal corporate use—ensures the integrity of the credit's focus on public-beneficial products. By delineating these exclusions, the program maintains its orientation toward producing widely accessible media that advance knowledge or provide entertainment.
Moreover, eligibility for the tax credit requires that participating businesses maintain a significant operational presence in Manitoba, displaying the province’s commitment to nurturing local talent and resources. This geographical stipulation ensures that benefits are localized, contributing directly to the economic fabric of Manitoba while avoiding capital flight.
Prospective applicants are urged to gain a Certificate of Eligibility before commencing their projects, thereby aligning their endeavors with the compliance frameworks laid out by the Economic Programs Branch. This procedural necessity not only streamlines the approval process but also ensures that projects remain tethered to the credit's strategic goals from inception through completion.
Ultimately, the Manitoba Interactive Digital Media Tax Credit is more than a fiscal policy; it represents a strategic commitment by the province to be at the forefront of digital media innovation. By leveraging this tax credit, businesses can enjoy reduced financial risk, encouraging more ambitious projects. The cascading effect is an enhanced industry reputation, a vibrant job market for skilled digital professionals, and a resilient economic structure adaptable to the demands of the digital age.