Victoria – Video game and virtual reality (VR) developers will soon benefit from an increased tax credit for the interactive digital media industry in B.C.
For more information about the interactive digital media tax credit, visit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/interactive-digital-media
“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.”
To provide certainty for the industry, the Province has made the tax credit permanent and is increasing it from 17.5% to 25% beginning Sept. 1, 2025. Businesses can claim the credit on salaries and wages paid during development of interactive digital media, which include video games, educational software and simulators.
“As a game developer and entrepreneur, I know how important people are to success in the industry,” said Brenda Bailey, Minister of Finance. “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. We stand by our developers and can’t wait to see what they create next.”
The changes support growth in the industry. It employs more than 20,000 people in B.C. and adds more than $1 billion to the province’s gross domestic product every year, according to CreativeBC.
“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, 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.”
Technology companies in B.C. can also tap into the Province’s Integrated Marketplace Initiative. The Province has committed an additional $30 million for the initiative that helps tech companies test their products. Eligible small studios can also benefit from B.C.’s newly enhanced venture-capital tax credit program, which has an increased individual limit of $300,000 to encourage investment in small businesses in B.C.
The increased tax credit for interactive digital media was introduced in Budget 2025 and is part of the Province’s plan to grow the economy, encourage investment and protect jobs in B.C.
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Other industries that can access income tax credits in B.C. include film and TV, mining exploration, shipbuilding and book publishing.
There are 161 video game companies and 230 immersive technology companies in B.C., according to the Entertainment Software Association of Canada.
Almost half of all video game companies in B.C. are small, made up of 10 people or fewer.
Large developers in the sector with operations in B.C. include Microsoft, Nintendo, EA, Take-Two and CD Projekt Red.
The interactive digital media tax credit helps companies offset labour costs from developing their products.
