Manitoba Interactive Digital Media Tax Credit

Overview of the Manitoba Interactive Digital Media Tax Credit program:

The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate income tax credit which provides up to a 40% credit on qualified labour expenditures, and some marketing and distribution expenses, incurred in the development of eligible interactive digital media products for market.

Benefits of the Manitoba Interactive Digital Media Tax Credit program:

• A 40% credit on qualified labour expenditures, and some marketing and distribution expenses, incurred in the development of eligible interactive digital media products for market.

Eligibility criteria of the Manitoba Interactive Digital Media Tax Credit program:

• (a) The corporation, incorporated in Canada (federally or provincially), is taxable under subsection 89(1) of the Income Tax Act (Canada).
• (b) It must maintain a consistent presence in Manitoba during the period when eligible expenses arise, typically indicated by a local office, assets, and representatives with contracting authority.
• (c) For a 40% tax credit, the company must allocate 25% of its annual salaries to Manitoba residents. Alternatively, for a 35% credit, if they pay less than 25% of their salaries locally, they should have a minimum of $1,000,000 in eligible Manitoba labor costs, without overlaps in other government assistance.