Manitoba — Interactive Digital Media Tax Credit

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.

Who is eligible?

Who is not eligible

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.

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.

Eligible geographic areas

This grant is specifically available to companies with a permanent establishment in Manitoba. The eligibility focuses on ensuring local economic growth and development in the interactive digital media sector.

• Companies must have a permanent establishment in Manitoba.

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.

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.