- Refundable corporate tax credit
- Focused on supporting digital media production in Manitoba
- Accepts applications each taxation year
The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable tax credit for eligible companies that develop and produce digital media projects in Manitoba.
MIDMTC offers a refundable corporate income tax credit equal to 40% of Manitoba labour costs on eligible projects. A maximum of $1,250,000 of eligible labour costs may be claimed for an eligible project, for a maximum tax credit of $500,000 (40% of $1,250,000).
Eligible labour, as well as some marketing and distribution costs, that are directly attributable to product development, and were incurred and paid during the “project period” of an eligible project are eligible for the MIDMTC.
A qualifying company must be a taxable Canadian corporation with a permanent establishment in Manitoba. The company must pay at least 25% of the salaries and wages during the project period to employees who are Manitoba residents in order to qualify for a 40% tax credit.
The product must:
- Be an interactive non-linear digital media product
- Consist of a combination of digital software and data files which is designed to present information through sound, images and/or text and provides users with an interactive experience
- Be designed primarily to educate, inform or entertain the user
- Be commercialized and sold to one or more purchasers that deal at arm’s-length with the eligible developing corporation.
MIDMTC is an ongoing program that accepts applications for each taxation year or upon project completion.