Intake status: Closed – Applications to register with the program are not being accepted.

Ministry responsible: Economic Development, Trade and Tourism

Overview

Effective October 24, 2019, the Interactive Digital Media Tax Credit (IDMTC) program is being phased out.

Budget has been allocated to support participants that have already received conditional approval through the January 2019 intake.

Important information for conditionally approved participants as well as next steps are outlined on this page.

Note:

  • No further application intake windows will take place.

The IDMTC offers a 25% refundable tax credit for labour costs associated with interactive digital media activities.

The program is available to corporations whose primary business is the creation and development of interactive digital media and gaming products.

Tax credit amounts are calculated based on a percentage of labour expenses directly attributable to the production of interactive digital media products.

Eligible corporations who hire employees from under-represented groups may also qualify for an additional tax credit of up to 5% of all eligible costs through the diversity and inclusion program component if all conditions are met.

Conditionally approved participants

Tax credits will be honoured for companies that received Conditional Approval Letters through the January 2019 intake.

Companies with conditional approval will still need to follow the guidelines and next steps for submitting actuals and applying for a tax credit certificate.

Funding

Tax credit certificates issued through the IDMTC are refundable.

Eligible salary and wages paid as of April 1, 2018 are eligible for the IDMTC program.

Note that the Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit cannot be claimed for the same tax year as a claim for the IDMTC.

For more information on how to file tax credits in Alberta, contact the Tax and Revenue Administration Client Self-Service (TRACS).

Diversity and inclusion

Corporations applying for the IDMTC can participate in the diversity and inclusion component of the program, which offers eligible corporations an additional 5% tax credit (calculated on an individual employee basis) for under-represented employees in technical positions.

Additional information on the diversity and inclusion program component is outlined in the program guidelines.

Next steps

Step 1. Submit actuals to receive a tax credit certificate

In order to receive a tax credit certificate, a corporation is required to submit actual eligible salary and wage expenses.

The following information must be submitted through the online application portal within 90 days of a corporation’s fiscal year end.

The total amount of the corporation’s eligible salary and wages, as determined under the Schedule of the Interactive Digital Media Tax Credit Regulation, for the taxation year.

For the purposes of the Interactive Digital Media Tax Credit Act, salary and wages must demonstrate that they:

  • are directly attributable to eligible activities
  • are incurred by the corporation in the taxation year on or after April 1, 2018
  • are paid to an individual who was resident in Alberta as of December 31 of the year preceding the taxation year for which a tax credit is claimed under the Income Tax Act (PDF, 18.9 MB)
  • are included in the cost to, or in the case of depreciable property the capital cost to, the corporation of a property in the taxation year under the Income Tax Act (PDF, 18.9 MB)
  • are deductible as an outlay or expense in determining the income of the corporation for the taxation year under Part 2 of the Income Tax Act (PDF, 18.9 MB)
  • have the amount of designated assistance that the corporation received from the Government of Alberta during the taxation year

Those corporations wishing to remain in the IDMTC program for the following year, will be required to submit a new forecast, similar to the one submitted during registration.

Step 2. Delivery of tax credit certificates

Tax credit certificates will be available for download through the online application portal.

Additional program details

For more information on the program, refer to:

Contact

Connect with the IDMTC program:
Email: idmtc.program@gov.ab.ca