Digital Media Industry to Benefit From Tax Credit

first_imgThe province has introduced a tax credit that will help companies in Nova Scotia develop interactive products like video games and websites. Regulations announced today, Nov. 26, provide specific details on the Nova Scotia Digital Media Tax Credit. “The digital media industry is a creative, growing industry with great potential for our future economy,” said acting Finance Minister Angus MacIsaac. “This tax credit makes us more competitive — it is financial incentive for producers to come to work in Nova Scotia and to hire Nova Scotians.” The credit, originally announced in the budget, is available for interactive digital media products whose primary purpose is to educate, inform or entertain. It is based on 35 per cent of Nova Scotia labour costs or 17.5 per cent of total development costs incurred in Nova Scotia, whichever is less. An additional bonus is available for product development outside Halifax Regional Municipality. Rates of credit and operation of the program are similar to the Film Industry Tax Credit, announced in September. The minister said government intends to increase the credit’s rates to match those of the Film Industry Tax Credit, in the spring. There are several digital media companies in operation in Nova Scotia. Extensive consultation with the industry took place as part of the program design and development of regulations. The credit is effective July 1, 2007. To get the credit, corporations must apply and meet eligibility criteria. Further details can be found at www.gov.ns.ca/finance . Official guidelines and application forms will be available online in January.last_img read more