The government of British Columbia, Canada has revealed sweeping new tax credits that it hopes will aid the growth of digital media production within its boundaries.
The BC Interactive Digital Media tax credit for game developers proposes a credit for 17.5 percent of qualifying B.C. labor costs. If approved, the tax credit would go into effect for game development projects beginning after August 31, 2010.
Other planned tax breaks include an increase on an existing tax credit for labor costs of foreign film productions within B.C., from 25.0 percent to 33.0 percent, and an increase in tax credits for digital animation or visual effects from 15.0 percent to 17.0 percent.
Kevin Krueger, Tourism, Culture and the Arts Minister, said about the tax credits, “They will serve to help keep B.C. at the forefront of the North American film and television industry, while providing a significant boost for video game production in our province.”
Douglas Tonsgard, CEO of Next Level Games in Vancouver, offered his take to the Vancouver Sun on what the credits would mean for his game development company:
It will do two things. It will stop job losses that have been happening now, and it will prepare us properly for future growth in Vancouver. Before the tax credit, it didn't make sense to grow your business in Vancouver. I know we will be adding people to our company now.
