Manitoba — Interactive Digital Media Tax Credit

• Certificate of Eligibility Application
• Project Description
• Commercialization Plan
• Project Budget and Funding Sources
• Declaration of MB Residency/Consent Form
• 3rd Party Declaration Form

Who is eligible?

Who is not eligible

• Companies developing operating systems.
• Companies developing products used primarily for interpersonal communication.
• Companies developing promotional products.
• Companies developing adults-only rated video games.
• Companies developing products for internal use.

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.

Ineligible Costs and Activities

• Bonuses tied to profits or revenues.
• Stock options.
• Signing bonuses.

Eligible geographic areas

• 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.

• Step 1: Complete the online Certificate of Eligibility form and submit it.
• Step 2: Send the Project Description, Commercialization Plan, and Project Budget and Funding Sources to ecdevprograms@gov.mb.ca with the required subject line.
• Step 3: Wait for eligibility review and follow-up from program staff.

• Applications are reviewed for eligibility.
• Program staff may contact applicants within two weeks with follow-up questions or items.
• Full application review typically takes 4 to 6 weeks.

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.