BC Makes Interactive Digital Media Tax Credit Permanent and Boosts Rate to 25%
British Columbia is doubling down on its support for the province’s burgeoning game development and immersive tech sectors. As of September 1, 2025, the Interactive Digital Media Tax Credit (IDMTC) is being made permanent and increased from 17.5% to 25% for qualifying salaries—a significant win for developers and tech companies in BC.
Why This Matters
Long-term certainty: Making the IDMTC permanent gives studios confidence to plan long-term projects and investments.
Greater financial incentive: The new 25% refundable credit applies to wages supporting video games, educational software, VR/AR experiences, and other interactive media developed in BC .
Talent and job growth: BC’s interactive digital media industry employs over 20,000 people and contributes more than $1 billion annually to the provincial GDP. This enhanced credit is expected to fuel further growth.
What This Means for Your Business
Increased savings: With the rate boost to 25%, qualified BC-based wage expenses yield much larger refunds.
Strategic investment: The permanence of the credit eases long-term staffing, R&D, and capital investment decisions.
Competitive edge: BC now ranks even stronger against other global hotspots, making it more attractive to both domestic and foreign development teams.
Next Steps
Check eligibility: Ensure wage expenses are tied to interactive digital media projects like video games, VR/AR, educational tools, and simulators.
Track meticulously: Maintain clear documentation of development staff time and project hours in BC.
Plan around the timing: The new 25% rate kicks in on September 1, 2025—align development and accounting cycles to maximize savings.
Ready to take advantage?
If you're looking to navigate BC's enhanced tax credit landscape—developing strategies to claim the IDMTC, integrate it with SR&ED, or align it with private investment opportunities—don't hesitate to get in touch. Turn these incentives into growth drivers for your studio.
