Vancouver/CMEDIA: Reportedly an increased tax credit for Digital media industry in B.C. will benefit the interactive Video game and virtual reality (VR) developers.
B.C. houses 161 video game companies and 230 immersive technology companies, according to the Entertainment Software Association of Canada with almost half of all video game companies being small, made up of 10 people or fewer.
“Video games are big business in our province, supporting thousands of jobs,” said Premier David Eby. “We want to keep growing our tech sector to create even more opportunities for British Columbians. This tax credit will help game developers hire, attract new investment and keep building some of the best games in the world.”
To promote the industry of Video game and virtual reality (VR) developers, the Province has made the tax credit permanent and is increasing it from 17.5% to 25% beginning Sept. 1, 2025.
The interactive digital media tax credit helps companies offset labour costs from developing their products.
Large developers in the sector with operations in B.C. include Microsoft, Nintendo, EA, Take-Two and CD Projekt Red.
During the process of development of interactive digital media including video games, educational software and simulators, businesses can claim the credit on salaries and wages paid.
“As a game developer and entrepreneur, I know how important people are to success in the industry,” said Brenda Bailey, Minister of Finance. “We have increased the credit to support jobs for the skilled, hard-working people in interactive digital media, whether they are a software engineer at a VR developer or an artist at an independent game studio. We stand by our developers and can’t wait to see what they create next.”
The changes support growth in the industry, facilitates employing more than 20,000 people in B.C. and adds more than $1 billion to the province’s gross domestic product every year, according to CreativeBC.
“Electronic Arts appreciates B.C.’s continued commitment to the interactive digital media sector through enhancements to the interactive digital media tax credit,” said Natali Altshuler, COO, EA SPORTS Studios. “Long-term support like this reflects the Province’s recognition of the industry’s value and enables companies like ours to continue contributing to B.C.’s creative and innovative economy.”
Technology companies in B.C. can also tap into the Province’s Integrated Marketplace Initiative.
Having committed an additional $30 million for the initiative, The Province helps tech companies test their products.
B.C. ‘s newly enhanced venture-capital tax credit program with an increased individual limit of $300,000, the province encourages investment in small businesses. and benefiting eligible small studios
Introduced in Budget 2025, the increased tax credit for interactive digital media is part of the Province’s plan to grow the economy, encourage investment and protect jobs in B.C.
Film and TV, mining exploration, shipbuilding and book publishing are included in the industries that can access income tax credits in B.C.
