B.C. Permanently Boosts Tax Credit for Video Game and VR Developers: What It Means for You
The B.C. government has announced a permanent increase to the Interactive Digital Media Tax Credit (IDMTC)—a major move that could significantly benefit video game, VR, AR, and other interactive media companies operating in the province. If you're in this space, this is a development you don’t want to miss.
What’s Changing?
Effective September 1, 2025, the IDMTC rate will increase from 17.5% to 25% of eligible salary and wages. This 7.5% boost is a game-changer, especially for early-stage and growing digital media companies, offering much-needed cash flow relief and stronger incentives to grow locally.
The tax credit will also become permanent, ending years of temporary extensions and offering long-term stability for companies planning future investments.
Who’s Eligible?
The credit applies to qualifying corporations that develop interactive digital media products primarily for entertainment or educational purposes. This includes:
- Video game developers
- Virtual and augmented reality creators
- Simulation software providers
- Other interactive digital experiences
To qualify, a company must:
- Operate in British Columbia
- Pay qualifying salary and wages to employees directly engaged in interactive digital media production
- Be a Canadian-controlled private corporation (CCPC) or a taxable Canadian corporation with a permanent establishment in B.C.
Why This Matters
This enhanced and permanent tax credit places B.C. among the most competitive jurisdictions in North America for interactive digital media. For companies already in the province—or considering relocating here—it significantly lowers the cost of hiring and retaining top tech talent.
Finance Minister Katrine Conroy noted that the move is aimed at supporting high-skill jobs and encouraging innovation in the province’s growing digital economy.
How Senova Can Help
At Senova we understand that accessing tax credits can be complex—especially when determining eligibility, compiling qualifying expenditures, and navigating CRA compliance.
Here’s how we can support you:
- Eligibility Assessments – We’ll review your business activities and structure to ensure you qualify under IDMTC rules.
- Maximizing Claims – Our tax experts can help identify all eligible expenses and ensure proper documentation to optimize your claim.
- Application Support – We’ll guide you through the entire claim process, from provincial registration to federal filings.
- Strategic Planning – Looking to expand or scale your operations? We can help you integrate tax credit strategies into your broader business plan.
Let’s Talk
This is an exciting opportunity for B.C.’s digital media innovators—and a valuable incentive that can improve your bottom line. Whether you're a startup studio or an established developer, the right tax strategy can unlock thousands (or millions) in savings.
Connect with our team at Senova today to explore how you can make the most of the new IDMTC enhancements and grow confidently with expert financial guidance.