Digital Media
The government of Canada defines Interactive Digital Media as digital content and technologies that allow users to engage, participate, or influence the content or experience, rather than passively consuming it. The easiest interpretation of the term is games, thought it can also encompass apps, web platforms, virtual reality or augmented reality, provided the following criteria is met:
- User Interaction: requires the user to interact
- Dynamic Content: content can adapt based on user input or choices
- Multi-Sensory Engagement: combines visuals, audio or sometimes haptic feedback to create and immersive experience
- Two way communication: allows real-time feedback or communication between the user and the system
With a strong industry featuring innovative development in cross, platform entertainment, game development, virtual and augmented reality, and more interactive digital media, the government of Canada has a robust system of financial supports for the industry in the form of grants, tax credits and other financial contributions.
The largest source of funding is through Interactive Digital Media Tax Credits, available at the provincial level. The rates depend on region, program and production type and are outlined below:
| BRITISH COLUMBIA | |
| BC Interactive Digital Media Tax Credit (IDMTC) | BC Interactive Digital Media Tax Credit (IDMTC) 17.5% of eligible expenditures |
| MANITOBA | |
| Manitoba Interactive Digital Media Tax Credit (MIDMTC) | 35-40% of eligible expenditures (depending on certain wage conditions) |
| NEWFOUNDLAND AND LABRADOR | |
| Newfoundland and Labrador Interactive Digital Media Tax Credit (IDM) | 40% of eligible salary expenditures 65% to eligible subcontracting expenditures |
| NOVA SCOTIA | |
| Digital Media Tax Credit (DMTC) | 50% of eligible labour expenditures (+10% regional bonus) 25% of eligible expenses in Nova Scotia (+5% regional bonus) |
| ONTARIO | |
| Ontario Digital Media Tax Credit (OIDMTC) | 40% of eligible expenditures for companies that develop their own IP 35% for service contracts |
| QUEBEC | |
| Quebec Multimedia Tax Credit (CTMM) | 37.5% of eligible expenditures |
The Canada Media Fund is another significant source of interactive digital media funding, prioritizing the creation of popular and innovative Canadian content and software for both current and emerging digital platforms. Their Experimental Stream focuses on digital media content, and is in place to drive the creation of innovative, interactive content as well as leading edge software applications for digital media platforms.
SR&ED is another key source of funding for digital media companies that are developing innovative technologies as part of their product. See our information on SR&ED here.
Contact us for more information on Digital Media Tax Credits.