Manitoba interactive digital media tax credit

Manitoba Jobs and the Economy will issue a tax credit certificate to a corporation that develops and produces an eligible interactive digital media project in Manitoba, upon completion of the project. However, the corporation must first receive a certificate of eligibility before the start of the project.

The following conditions apply:

• the tax credit certificates can be issued on a tax-year basis (this does not apply if the purchaser is the government or a public body)
• repaid or repayable government assistance does not reduce eligible labour costs
• where a government or public authority is the purchaser of an interactive digital media product, the amount paid by the purchaser and the amount of the interactive digital media tax credit cannot exceed 100% of the project's costs

To claim the credit, a qualifying corporation must be a taxable Canadian corporation with a permanent establishment in Manitoba. It must pay at least 25% of the salary and wages to employees who are Manitoba residents for the project period.

The amount of the credit is equal to 40% of eligible labour expenditures paid in the tax year to residents of the province. A maximum amount of expenses of $500,000 per eligible project was applicable before June 30, 2016.

Projects that begin prototyping and product development before 2020 qualify for the credit.

For projects that have been issued an eligibility certificate after 2011 and that start production after 2012:

• companies may claim up to $100,000 in eligible marketing and distribution expenses that are directly attributable to an eligible production entitled to claim marketing and distribution expense
• financial support from the Canada Media Fund that is recoupable or repayable will not be treated as government assistance
• an eligible product that is developed under contract for an arm’s-length purchaser does not need to demonstrate the product will be resold or licensed by that arm’s-length purchaser
• a broader interpretation of the sale requirement will be used by the province in determining which types of commercialization projects will be eligible

This credit is fully refundable.

Claiming the credit

File the certificate with your return no later than the filing-due date of the tax year following the tax year in which the project was completed.

On line 614 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit you are claiming.

Forms and publications

• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba (provincial site)

Date modified:

2017-04-26