Interactive Digital Media Tax Credit

Tax Incentives: Recent Manufacturing R & D Film & Video Education Mining Federal

The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate income tax credit for companies that develop and produce interactive digital media projects in Manitoba.

The tax credit will be equal to 40% of the remuneration paid to Manitobans on eligible projects approved by Manitoba Jobs and the Economy.  The maximum tax credit on an eligible project is $500,000.

Projects that begin prototyping and product development after April 9, 2008 and before 2017 can qualify for the credit. A qualifying company must be a taxable Canadian corporation with a permanent establishment in Manitoba.  The tax credit will be processed as part of a qualifying company’s annual income tax return and administered by the Canada Revenue Agency.

In Budget 2013, adjustments were made to the MIDMTC.  The following changes are effective for projects that have been issued an eligibility certificate by Manitoba Jobs and the Economy after 2011, and that commence production after 2012:

  • companies may claim up to $100,000 in eligible marketing and distribution expenses that are directly attributable to an eligible project;
  • financial support from the Canada Media Fund that is recoupable or repayable will not be treated as “government assistance;”
  • an eligible product that is developed under contract for an arm’s-length purchaser does not need to demonstrate the product will be resold or licensed by that arm’s-length purchaser; and
  • a broader interpretation of the sale requirement will provide the province with added flexibility in determining which types of commercialization projects will be eligible.

For additional information on these changes, visit http://www.gov.mb.ca/finance/budget14/papers/taxation.pdf or contact Manitoba Jobs and the Economy.
http://www.gov.mb.ca/jec/busdev/sibd/idm_taxcredit.html