Digital Media Tax Credit
The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia. Clarification on July 1st 2015 – Animation for Film Industry Tax Credit As of January 1, 2008 the credit rates were increased. Tax credit amounts will now be equal to the lesser of: 50 percent of eligible Nova Scotia labour expenditures; or 25 percent of total expenditures made in Nova Scotia A 10 percent geographic area bonus on labour expenditures (5 percent bonus on total expenditures) is available for products developed outside the Halifax Regional Municipality.
Grant Deadline
Deadline not available
Funding Amount
Range between $1 - $100,000
Type of Grant
Tax Credit
Sectors
Arts & Culture, Film, Music, Entertainment, Media
Demographics
Incorporation
For Profit
Perks
Region Restriction
This grant is restricted to whole of Canada
Keywords
development, business, tax credit, Individuals, Educational services, interactive, digital media, entertainment
Age Restriction
This grant is age restricted from 18 to 100
Eligibility and Requirements
Eligibility
To be eligible for this credit, a corporation developing an interactive digital media product must satisfy all of the following requirements:
- Be a taxable Canadian corporation
- Corporation must have a “permanent establishment” in Nova Scotia, meaning:
- - A fixed place of business in the province
- - Assets in the province to develop the product
- - Personnel in the province who can contract on behalf of the corporation
- Corporation must not be a prescribed labour-sponsored venture capital corporation under the federal Income Tax Act
To be eligible for this credit, the digital media product:
- Must be interactive
- Primary purpose must be to educate, inform or entertain users
- May be developed for use by either individuals or businesses
- Must achieve its primary purpose by presenting information in at least two of three formats: text, sound or images.
To be eligible for the geographic area bonus, the corporation must:
- Have a permanent establishment outside the Halifax Regional Municipality
- At least 50 per cent of salaries for the development of the product must be paid to employees who work out of a permanent establishment in the eligible geographic area.
Note: There is no requirement for the corporation to own the copyright to the product.
The following products are NOT eligible for the credit:
- Operating system software
- Application software (e.g. database, spreadsheet, word processing)
- Products developed primarily for interpersonal communications (e.g. cellphone, e-mail software)
- Any product that is pornographic or discriminatory
- Any product that is primarily used to advertise or promote a corporation or organization
Eligibility is assessed on a product-by-product basis.
Grant Application website
Contact
Samantha Thomson
Revenue Officer
Tel: 902.424.5388