BC IDMTC

BC Interactive Digital Media Tax Credit

What is BC IDMTC?

The interactive digital media tax credit (IDMTC) is for eligible registered corporations that develop interactive digital media products in B.C. after August 31, 2010 and before September 1, 2023.

Who is eligible?

BC Interactive Digital Media Tax Credit

Introduced commencing after August 31, 2010, BC’s IDMTC has recently been renewed until September 1, 2023.

Aimed at corporations with a permanent residence in BC, it targets companies producing:

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Video games

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Educational software

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Edutainment products

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Simulators

The IDMTC may be claimed as an alternative to BC’s provincial SR&ED incentive.

This 17.5% refundable tax credit (i.e. refundable in cash) is generally much more lucrative than BC SR&ED and eligibility is also a great deal less subjective.

Our tax specialists can work with you optimize the integration of SR&ED and BC IDMTC claims to ensure that your company has the maximum benefit with the least amount of risk

BC’s 2017 Budget Update amended the IDMTC program to:

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Allow eligible business corporations participating in the Small Business Venture Capital Program to claim the credit for tax years that end on or after February 22, 2017.

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Allow corporations whose annual qualifying B.C. labour expenses exceed $2 million to claim the credit, even if their principal business is not the development of interactive digital media products, for tax years that end on or after February 22, 2017.

That means corporations using the VCC program to provide tax credits to BC-based investors can also claim the BC IDMTC.

Our tax specialists can help eligible companies navigate the complexities of these lucrative incentive programs.

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Our team has extensive experience with Scientific Research and Experimental Development Tax Incentives, allowing companies to apply for tax credits or refunds.

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