On Monday, July 7, 2025, the Province of British Columbia announced a historic update to the Interactive Digital Media Tax Credit, making the program permanent and increasing the credit rate. This change will benefit video game and virtual reality (VR) developers across the province.
To provide long-term certainty for the sector, the tax credit will become permanent and rise from 17.5% to 25% starting September 1, 2025. Eligible businesses can claim the credit on salaries and wages paid during the development of interactive digital media, including video games, educational software, and simulators.
These enhancements support continued growth in B.C.’s interactive digital media industry, which employs over 20,000 people and contributes nearly $2 billion annually to the province’s GDP.
Learn more about the Interactive Digital Media industry here
See the original press release here