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News - New budget ends IDM tax credit for video game studios in Alberta, Canada

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New budget ends IDM tax credit for video game studios in Alberta, Canada

<div style="margin: 5px 5% 10px 5%;"><img src="https://www.sickgaming.net/blog/wp-content/uploads/2019/10/new-budget-ends-idm-tax-credit-for-video-game-studios-in-alberta-canada.jpg" width="200" height="200" title="" alt="" /></div><div><p>The 2019-23&nbsp;budget revealed by Alberta’s United Conservative Party government this week eliminates the <a href="https://www.alberta.ca/interactive-digital-media-tax-credit.aspx">Interactive Digital Media Tax Credit</a>, a program that aimed to encourage the growth of Alberta’s game industry through a refundable tax credit.</p>
<p>According to the <a href="https://calgaryherald.com/news/five-business-tax-credits-scrapped-ucp-abandons-targeted-programs-in-favour-of-lower-corporate-taxes">Calgary Herald</a>, the Interactive Digital Media Tax Credit is one of five business tax credits completely eliminated in the budget.</p>
<p>In that plan, the&nbsp;UCP suggests choosing to instead lower the corporate tax rate by 4 percent over the next several years will yield better results in job creation and economic growth than focused, industry-specific tax credits.&nbsp;</p>
<p>Set up in 2018, the Interactive Digital Media Tax Credit offered game studios operating out of Alberta a 25 percent refundable tax credit for labor costs, along with an additional tax credit of up to 5 percent for teams that participated in an optional diversity and inclusion program. The goal of the short-lived program was to attract tech talent to Alberta and support growth in the province’s interactive digital media industry.</p>
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https://www.sickgaming.net/blog/2019/10/...ta-canada/
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