The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia.
Tax credit amounts will be equal to the lesser of:
- 50% of eligible Nova Scotia labour expenditures or;
- 25% of total expenditures made in Nova Scotia.
A 10% geographic area bonus on labour expenditures (5% bonus on total expenditures) is available for products developed outside the Halifax Regional Municipality. Corporations may also be eligible to receive a credit on marketing and distribution expenditures to a maximum of $100,000 per product. These expenditures may be made outside the province.
A qualifying expenditure is defined as the sum of the following:
1. Eligible salaries
2. 65% of eligible remuneration
3. Marketing and distribution expenditures to a maximum of $100,000 per eligible product
- Be a taxable Canadian corporation;
- Corporation must have a “permanent establishment” in Nova Scotia;
- Must be interactive;
- Primary purpose must be to educate, inform or entertain users;
- May be developed for use by either individuals or businesses;
- Must achieve its primary purpose by presenting information in at least two of three formats: text, sound or images