In September of 2018 the Alberta Government introduced it’s new Interactive Digital Media Tax Credit, in an effort to diversify their economy. Unlike the BC IDMTC which was integrated directly into BC’s Income Tax Act, the Alberta Government introduced a new INTERACTIVE DIGITAL MEDIA TAX CREDIT ACT.
While there are many similarities, there are also significant differences.
Alberta corporations must submit a “Labour Plan” based upon projections and actual labour expenditures for the preceding tax year. Even more onerous is the requirement to file detailed costs and other information within 90 days of the end of the tax year for which they have been granted “conditional approval” for their labour plan.
While this may be a difficult hurdle for many small, Alberta-based gaming companies, companies with eligible expenditures of only $50,000 will qualify. This compares with a minimum eligible expenditure of $100,000 for the BC IDMTC.
The tax credit percentage is richer than the BC IDMTC – at 25% compared to only 17.50% for BC claims. What’s more there is a further 5% for female employees, ‘gender minorities’, indigenous people, people with disabilities and visible minorities.