We currently prepare interactive digital media tax credits in: British Columbia, Ontario, Quebec, Manitoba, Nova Scotia and Newfoundland & Labrador.

The interactive digital media tax credit (IDMTC) is for eligible registered corporations that develop interactive digital media products. Examples of interactive digital media products include: video games, educational software, edutainment products and simulators.

As of August 31 2025, the refund rate on eligible salaries and wages is 25%.

The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a refundable tax credit based on eligible Ontario labour expenditures and eligible marketing and distribution expenses claimed by a qualifying corporation with respect to interactive digital media products.

There are four types of products that can be claimed under the OIDMTC: non-specified products, specified products, eligible digital games developed by a qualifying digital game corporation, and eligible digital games developed by a specialized digital game corporation. Types of interactive digital media products that may be eligible for the tax credit include, but are not restricted to, digital games, mobile applications and e-learning products for children. Operating system software is not eligible for the tax credit.

A product must be an interactive digital media product whose primary purpose is to entertain users or educate children under 12, and that achieves its primary purpose by presenting information in at least two of: (i) text, (ii) sound and (iii) images. The OIDMTC regulations exclude certain types of products, including most websites.

A 40% tax credit is available for eligible Ontario labour expenditures and eligible marketing and distribution expenses incurred by qualifying corporations that develop and market their own products (known as “non-specified products”). The credit is 35% on eligible Ontario labour expenditures for products developed under a fee-for-service arrangement (known as “specified products”). A 35% credit on eligible labour expenditures is also available to qualifying digital game corporations and specialized digital game corporations (see large digital game corporations below). Eligible marketing and distribution expenses are capped at $100,000 per non-specified product.

Your corporation may be eligible if it has an establishment in Québec and produces eligible multimedia titles.

Titles must be published on an electronic medium, controlled by software allowing interactivity, and contain a substantial volume of three of the following four types of information: text, sound, still images and animated images. Video images are considered as only one media component.

Related titles such as digital animation films associated with an eligible multimedia title produced by your corporation are also eligible. However, the labour expenditure related to the main multimedia title with which the related title is associated must be at least $1 million.

The tax credit may amount to 37.5% (refundable and non refundable) of eligible labour expenditures.

The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate tax credit.

Under the MIDMTC, an eligible product must include the development of digital media that the user interacts with by employing both software and data files. The media will include a combination of text, sound, or images. A qualifying product must be non-linear in nature and enable the user to become a participant with the media, not simply a reader or spectator. Common examples of interactive digital media products include video games, simulators and multi‑pathed, participatory e-learning products.

To qualify for a 40% tax credit, a company must be a taxable Canadian corporation with a permanent establishment in Manitoba and pay 25% of its company salaries and wages to Manitoba residents. A company that pays less than 25% of its salaries and wages to Manitoba residents can qualify for a 35% tax credit if it incurs at least $1 million in qualifying Manitoba labour expenses annually.

The Nova Scotia Digital Media Tax Credit (DMTC) is a refundable tax credit claimed by eligible corporations for expenditures incurred and paid in Nova Scotia, which are directly attributable to the development of an eligible interactive digital media product.

To be eligible for the DMTC a product must be an “interactive digital media product whose primary purpose is to educate, inform or entertain the user. The product must be a combination of application and data files, all in a digital format, and achieve its primary purpose by presenting information, in appreciable quantities, in at least two of: (a) text, (b) sound or (c) images.

The DMTC is calculated as the lesser of 50% of qualifying expenditures or 25% of total expenditures. If the credit is calculated using total expenditures it will be reduced by the total amount of government assistance received by the applicant for the eligible product. An additional bonus of 10% qualifying expenditures or 5% on total expenditures is available for development of eligible products within an eligible geographic area of the Province.

The NL IDM tax credit is a refundable tax credit, which means that the amount of the credit minus any federal or provincial taxes payable will be paid to the qualifying corporation.

To be eligible for the DMTC a product must be an “interactive digital media product whose primary purpose is to educate, inform or entertain the user. The product must be a combination of application and data files, all in a digital format, and achieve its primary purpose by presenting information, in appreciable quantities, in at least two of: (a) text, (b) sound or (c) images.

To be eligible for the IDM tax credit, the product’s primary purpose must be to educate, inform or entertain. This must be achieved by presenting information in at least two of the following formats: 1) text, 2) sound, and 3) images.Additionally, the product must meet the following requirements:Use: intended to be used interactively by individuals.Communication: not used primarily for interpersonal communication.Non-promotional: not used to market or promote an entity, product or idea.

If you develop an interactive digital media product in NL, your company may receive a 40% tax credit on qualifying expenditures, which consist of eligible salaries plus 65% of eligible remuneration paid. The credit value is limited to $40,000 per eligible employee per year and $2 million per company, or group of associated companies, in respect of all taxation years ending in a calendar year.