Alberta cancels tax credit plans for game studios in Canada

The initiative to reinstate a tax incentive for developers in Alberta, Canada, has been abandoned.

As reported by The Logic, Premier Danielle Smith had unveiled plans in November 2022 to bring back the policy. However, Alberta's government now aims to bolster the digital media gaming sector through "strategic funding partnerships and investments" rather than implementing a "sector-specific" tax credit.

Innovation Minister Nate Glubish was directed by Smith to formulate a tax strategy paralleling the incentives offered by other major Canadian provinces: Quebec with 37.5%, Ontario at 40%, and British Columbia at 17.5%—rising to 25% in September for the gaming industry.

According to Jonathan Gauthier, press secretary for Glubish, forming strategic partnerships is seen as "the most effective and sustainable" approach to enhance game development within Alberta.

In 2024, the Canadian games sector added $5.1 billion to the nation's GDP, showing a 3% growth since 2021.

This economic contribution includes a direct input of $3.9 billion from the industry itself, complemented by an additional $1.2 billion arising from wider economic activities, such as supply chain and employee-related wages.