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Newfoundland and Labrador interactive digital media tax credit
Tax credit for interactive digital media production in Newfoundland and Labrador
Last Update: March 4, 2026
Funding available
$ 2,000,000
Timeline
- Open Date : January 1, 2015
- Closing date : December 31, 2024
Location
Newfoundland and Labrador, Canada
Overview
Get a refundable tax credit of 40% for costs of labour related to producing interactive digital media in Newfoundland and Labrador.
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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
- Maximum amount : 2,000,000 $
- Up to 40% of project cost
Timeline
- Open Date : January 1, 2015
- Closing date : December 31, 2024
Eligible candidates
Eligible Industries
- Information and cultural industries
Location
- Newfoundland and Labrador
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit supports projects centered around the development of interactive digital media products. These products must be designed to educate, inform, or entertain users by engaging them through interactive experiences.
- Development of video games that incorporate interactive user experiences.
- Creation of educational software aimed at providing learning tools through interactive content.
- Design of training simulators that engage users in hands-on, interactive learning.
- Production of virtual or augmented reality experiences that provide immersive storytelling and interaction.
Eligibility
Who is eligible?
Eligible applicants for the Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit include corporations that primarily carry on the business of interactive digital media development. Specifically, the applicant must:- Be an eligible corporation, meaning it primarily carries on the business of interactive digital media development.- Have a permanent establishment in the province of Newfoundland and Labrador (NL).- Be incorporated under the Corporations Act or an Act of the Parliament of Canada or another Canadian province.- Ensure that all or part of its income is not exempt from taxation under Part I of the federal Income Tax Act.- Hold a valid registration certificate under the IDM program. Eligible corporations are those with a fixed place of business in NL, as determined by Regulation 400(2) of the Income Tax Act (Canada). The presence of a permanent establishment will be evaluated by the Department of Finance.Who is not eligible
The IDM tax credit exclusion criteria stipulate that certain products are not eligible, particularly those primarily aimed at communication, promotion, or non-interactive use. Restrictive measures ensure alignment with the grant's focus on interactive educational, informational, or entertainment media.
- Products primarily used for interpersonal communication.
- Products primarily used for marketing or promotional purposes.
- Products likely to receive an "AO" rating by the Entertainment Software Rating Board.
- Products that enable gambling activities with real currency.
- Content aggregators and search engines.
- Products providing content such as news, public affairs, advice, blogs, or financial market reporting.
- Websites, unless primarily hosting digital games, virtual or augmented reality experiences, or educational products.
Eligible expenses
The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit supports projects that prioritize interactive digital media development with educational, informative, or entertainment value. Eligible activities encompass the creation of innovative digital platforms and applications that engage users through interactive experiences.
- Development of video games that integrate text, sound, and images for an interactive experience.
- Creation of educational software designed to engage users through feedback, control, and adaptability.
- Design of training simulators intended for use in educational or professional environments, providing interactive user experiences.
- Production of virtual or augmented reality experiences intended for educational or entertainment purposes.
Eligible geographic areas
This tax credit applies to companies with a permanent establishment in Newfoundland and Labrador. It is essential for eligible corporations to have a fixed place of business within this province to qualify.
- Companies with a permanent establishment in Newfoundland and Labrador.
Additional information
Here are additional relevant details for this grant:
- The tax credit is refundable, offering financial support after accounting for taxes payable.
- Permanent establishment criteria are evaluated based on Regulation 400(2) of the Income Tax Act (Canada).
- Eligible projects must obtain a registration certificate from the Tax Administration Division under the IDM program.
- For government projects, the credit is claimed post-completion and specific conditions apply for expenses incurred before November 8, 2019.
- The Minister of Finance holds the authority to revoke or suspend certificates based on compliance and eligibility factors.
Frequently Asked Questions about the Newfoundland and Labrador interactive digital media tax credit Program
Here are answers to the most common questions about the Newfoundland and Labrador interactive digital media tax credit. 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 Newfoundland and Labrador interactive digital media tax credit?
Get a refundable tax credit of 40% for costs of labour related to producing interactive digital media in Newfoundland and Labrador.
How much funding can be received?
Newfoundland and Labrador interactive digital media tax credit Funds up to 40% of admissible expenses, capped at $2,000,000 per project.
What is the deadline to apply?
The application deadline for this grant program was December 31, 2024.
Who is eligible for the Newfoundland and Labrador interactive digital media tax credit program?
To be eligible for the Newfoundland and Labrador interactive digital media tax credit program, you must:
The corporation primarily carries on the business of interactive digital media development.
The corporation must have a permanent establishment in Newfoundland and Labrador.
What expenses are eligible under Newfoundland and Labrador interactive digital media tax credit?
The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit supports projects centered around the development of interactive digital media products. These products must be designed to educate, inform, or entertain users by engaging them through interactive experiences. Development of video games that incorporate interactive user experiences.
Creation of educational software aimed at providing learning tools through interactive content.
Design of training simulators that engage users in hands-on, interactive learning.
Production of virtual or augmented reality experiences that provide immersive storytelling and interaction.
Who can I contact for more information about the Newfoundland and Labrador interactive digital media tax credit?
You can contact Government of Newfoundland and Labrador.
Where is the Newfoundland and Labrador interactive digital media tax credit available?
The Newfoundland and Labrador interactive digital media tax credit program is available the province of Newfoundland and Labrador.