Manitoba interactive digital media tax credit

Manitoba Science, Technology, Energy and Mines will issue a tax credit certificate to a corporation that develops and produces an eligible interactive digital media project in Manitoba, upon completion of the project. However, the corporation must first receive a certificate of eligibility before the start of the project.

Effective for certificates of eligibility and tax credit certificates issued after March 23, 2010:

• tax credit certificates can be issued on a tax-year basis instead of at the end of a project (this does not apply if the government or a public body is the purchaser);
• repaid or repayable government assistance will no longer reduce eligible labour costs; and
• where a government or public authority is the purchaser of an interactive digital media product, the amount paid by the purchaser and the amount of the interactive digital media tax credit cannot exceed 100% of the project's costs.

To claim the credit, a qualifying corporation must be a taxable Canadian corporation with a permanent establishment in Manitoba. It must pay at least 25% of the salary and wages to employees who are Manitoba residents for the project period.

The amount of the credit is equal to 40% of eligible labour expenditures paid in the tax year to residents of the province. The maximum tax credit on an eligible project is $500,000.

Projects that begin prototyping and product development after April 9, 2008, and before 2014 will qualify for the credit.

This credit is fully refundable. There are no carry-back of carry-forward provisions.

Claiming the credit

File the certificate with your return no later than the filing-due date of the tax year following the tax year in which the project was completed. On line 614 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you are claiming.

Forms and publications

• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)