On Feb 3, 2010, the BC Ministry of Finance announced changes to the provincial film tax credits and proposed creation of a new Interactive Digital Media tax credit resembling that of Ontario’s OIDMTC.

Little details are known at this time. The press release issued by the B.C government reads:

“Subject to approval by the legislature, the planned tax measures include:

• New BC Interactive Digital Media tax credit for video game development of 17.5 per cent of qualifying B.C. labour costs.
• Production Services Tax Credit on labour costs for foreign productions increased to 33 per cent from 25 per cent.
• Digital Animation or Visual Effects tax credit bonus increased to 17.5 per cent from 15 per cent.
• Qualified B.C. labour expenditures cap increased to 60 per cent from 48 per cent of production costs.

It is proposed that the film tax credit changes be effective for productions with principal photography that begin after Feb. 28, 2010. The BC Interactive Digital Media tax credit will be effective for qualifying video game development projects that begin after Aug. 31, 2010.”

The full text of the press-release can be found at http://www2.news.gov.bc.ca/news_releases_2009-2013/2010FIN0005-000125.htm

We are following the developments and will be ready to assist our clients with applying for BC Interactive Digital Media Tax Credit as soon as it becomes available. To learn more about how MCN can help your organization to fully benefit from various tax incentives and other programs, please Contact Us.