Alberta cancels tax credit initiatives for game development studios in Canada

The initiative to bring back a tax incentive for developers in Alberta, Canada, will not move forward as initially planned.

As reported by The Logic, although Premier Danielle Smith had indicated in November 2022 the intention to restore this program, the province has decided to instead concentrate on funding partnerships and investments to support the digital media gaming sector rather than delivering tax breaks specifically for that industry.

Innovation Minister Nate Glubish was instructed by Smith to create a competitive tax incentive similar to those in other leading Canadian centers like Quebec, Ontario, and British Columbia, which provided tax credits to the gaming industry of 37.5%, 40%, and 17.5%, respectively, with the last increasing to 25% recently in September.

Jonathan Gauthier, Glubish's press secretary, mentioned that forming strategic alliances is considered "the most effective and sustainable" approach to fostering game development in Alberta.

The video game sector in Canada made a $5.1 billion impact on the nation's GDP in 2024, witnessing a 3% growth from 2021 as highlighted by GamesIndustry.biz.

Of the $5.1 billion GDP contribution, $3.9 billion came directly from the gaming sector, with an additional $1.2 billion attributed to broader economic influences such as supply chain interactions and wages for individuals employed in the industry.