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This credit is part of a movement to encourage development within the creative sector, and is intended to help the Canadian digital media industry compete on an international level.

In order to qualify for the tax credit, the product has to have its primary purpose as education, information, or entertainment, and must be capable of presenting information in at least three of the following forms: text, sound, images, and moving images. The Digital Media Tax credit can, when applicable, be combined with the Scientific Research & Experimental Development (SR&ED) program in order to maximize innovation funding. This refundable tax credit is administered on a provincial level and requirements vary accordingly. Programs are available in Ontario, Nova Scotia, British Columbia, Manitoba, Quebec, and New Brunswick.