Some good news came across the wire today. The BC government, after much consultation with industry, has proposed a labour tax credit package for the interactive digital media sector (as well as some increases to existing film, digital animation and VFX credits).
The proposed interactive digital media tax credit is set to be 17.5% of labour costs. Which is a great start, but still a ways off Manitoba and Ontario's 40% credit for interactive digital media.
Subject to approval by the legislature, the planned tax measures include:
- New BC Interactive Digital Media tax credit for video game development of 17.5 per cent of qualifying B.C. labour costs.
- Production Services Tax Credit on labour costs for foreign productions increased to 33 per cent from 25 per cent.
- Digital Animation or Visual Effects tax credit bonus increased to 17.5 per cent from 15 per cent.
- Qualified B.C. labour expenditures cap increased to 60 per cent from 48 per cent of production costs.
If approved, the BC Interactive Digital Media tax credit will be effective for qualifying video game development projects that begin after Aug. 31, 2010.
