British Columbia increases Interactive Digital Media Tax Credit to 25%

The British Columbia (B.C.) government has made the Interactive Digital Media Tax Credit (IDMTC) permanent and increased it from 17.5% to 25% starting September 2025.

The increased IDMTC will support game developers, educational software creators, and VR/AR innovators in B.C. to sustain jobs and foster locally made IP. 

DigiBC, a long-time advocate for the tax credit, said the move could support the Canada province in becoming a leader in digital media entertainment by helping companies recruit talent and develop “world-renowned games". 

British Columbia is home to a number of games companies, including EA Sports FC developer EA Vancouver, Marvel Contest of Champions maker Kabam Games, Luigi’s Mansion 3 studio Next Level Games, Gears of War outfit The Coalition, and Homeworld 3’s Blackbird Interactive.

Attracting talent and studios 

“Vancouver continues to be one of Canada’s core game development hubs and an important part of a vibrant B.C. tech sector," said DigiBC board chair Jeanne-Marie Owens. 

“The renewed and increased IDMTC will not only foster job growth in existing companies but also attract new studios and talent, further cementing our province’s status as a leader in digital media innovation." 

DigiBC added in a blog post: “This increase is welcome news as the games industry faces a period of economic challenge, particularly affecting small and independent studios. 

“DigiBC remains committed to advocating for further investment opportunities to support local innovation and ensure long-term industry growth and are encouraged by the province’s continued investment to this end.”