British Columbia will increase its interactive digital media tax credit from 17.5% to 25% starting September 1, 2025, as the province seeks to strengthen hiring and investment in its gaming and virtual reality sectors.
The permanent tax credit applies to salaries and wages paid during development of video games, educational software and simulators. The gaming industry employs more than 20,000 people in B.C. and contributes over $1 billion annually to the province’s GDP, according to CreativeBC.
“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 opportunity 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.”
Supporting skilled workforce growth
The enhanced credit aims to help companies offset labour costs and compete for skilled workers in areas like software engineering and digital art. Finance Minister Brenda Bailey emphasized the focus on employment support.
“As a game developer and entrepreneur, I know how important people are to success in the industry,” said Bailey. “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.”
B.C. hosts 161 video game companies and 230 immersive technology companies, with nearly half of gaming firms employing 10 people or fewer. Major developers with B.C. operations include Microsoft, Nintendo, EA, Take-Two and CD Projekt Red.
Industry welcomes stability
Gaming companies say the permanent nature of the credit provides crucial planning certainty for hiring and expansion decisions.
“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 of 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.”
Independent studios also welcomed the increase. Raphael van Lierop, founder and creative director of Hinterland, said the change “makes a big difference for independent studios with significant development staff in B.C., like Hinterland, as we work on Blackfrost, the sequel to The Long Dark.”
Additional support measures
The province has committed an additional $30 million to its Integrated Marketplace Initiative, which helps tech companies test their products. Small studios can also access B.C.’s enhanced venture-capital tax credit program, which increased individual investment limits to $300,000.
The gaming tax credit joins other B.C. industry tax credits available for film and TV, mining exploration, shipbuilding and book publishing sectors.
