In a Canadian province, the tax credit for gaming companies will be increased to 25%
The authorities in the province of British Columbia, Canada have decided to increase the Interactive Digital Media Tax Credit (IDMTC) for so-called "interactive digital media." Among those eligible for the benefit are game developers.
Through IDMTC, Canadian gaming companies can recoup a portion of the funds spent on employee salaries. Currently, the compensation rate is 17.5%, but in September 2025 it will increase to 25%.
Notably, IDMTC initially began as a temporary support measure. In British Columbia, as in several other Canadian provinces, this benefit was launched in 2010 with a five-year expiration plan, but it was extended multiple times. Starting in September 2025, IDMTC will become a permanent benefit in the region.
Officials believe that local gaming companies will now hire more talented professionals since their financial burden will be slightly reduced. As a result, the competitiveness of developers will increase, ultimately having a positive impact on the province's economy.
British Columbia is one of the most popular provinces in Canada for game developers. The Canadian Entertainment Software Association estimated that in 2024 there were offices of 146 gaming companies in the province. Only Quebec (257) and Ontario (276) have more. For example, EA Vancouver, The Coalition, Relic Entertainment, Kabam Games, and Blackbird Interactive are based in British Columbia.