BCIDMTC and SR&ED Tax Credits

The Scientific Research and Experimental Development (SR&ED) tax credit offers assistance to digital media companies who are engaging in experimental development and, through this work, overcoming technological obstacles. By contrast, the Interactive Digital Media Tax Credit (IDMTC) provides funding for the production and development of interactive digital media which will be released on the public market. Earlier this year, we presented the case for pairing up SR&ED with the Ontario Interactive Digital Media Tax Credit (OIDMTC). However, is this also possible in other provinces such as British Columbia?

Can BC digital media companies take advantage of SR&ED and the British Columbia Interactive Digital Media Tax Credit (BCIDMTC) together? The answer is…yes! If your company pays BC provincial taxes, and if your company only claims federal SR&ED credits, you may be eligible to receive tax credits from both programs. If you have offices in both Ontario and BC, it is possible to apply for SR&ED, OIDMTC, and BCIDMTC, as long as eligible projects are taking place in each province. In BC, the validity of eligible BCIDTMC projects may have to be proven through a Principal Business Test, which assesses what kind of work and how much work your business conducted in BC. As you may be eligible for 35% of your SR&ED costs covered through federal tax credits, 35% of your interactive digital media development costs incurred in Ontario funded through refundable OIDMTC credits, and a further 17.5% of your interactive digital media development costs incurred in British Columbia awarded as refundable tax credits through BCIDTMC, applying for multiple programs can mean more resources can be put toward your business goals.

Our business analysts and technical writers here at NorthBridge will work with you and your company to determine which funding program best suits your business needs which claims will make the largest impact to your bottom line. NorthBridge can offload the work from you, allowing you to focus on the development of your product and business.