Business and Economic Development

Tax Credits and Programs: Manitoba Interactive Digital Media Tax Credit


The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate income tax credit which provides up to a 40% credit on qualified labour expenditures, and some marketing and distribution expenses, incurred in the development of eligible interactive digital media products for market.

To be eligible for credit, a corporation must first apply for a Certificate of Eligibility before proposed project work on the product begins.  Projects are reviewed for eligibility on a case by case basis.

To qualify for a 40% tax credit, a company must be a taxable Canadian corporation with a permanent establishment in Manitoba and pay 25% of its company salaries and wages to Manitoba residents. A company that pays less than 25% of its salaries and wages to Manitoba residents can qualify for a 35% tax credit if it incurs at least $1 million in qualifying Manitoba labour expenses annually.

An eligible product must include the development of digital media that the user interacts with by employing both software and data files. The media will include a combination of text, sound, or images. A qualifying product must be non-linear in nature and enable the user to become a participant with the media, not simply a reader or spectator.

Products must also meet a sales requirement to qualify for this tax credit. End products must be commercialized and sold to one or more purchasers that deal at arms-length with the eligible developing corporation. A product developed for the internal use of the applicant company, or for the internal use of a non arms‑length buyer will not qualify.

Operating systems, products used primarily for interpersonal communication, promotional products and adults-only rated video games are not eligible for this tax credit.

 

For more information, please contact:

Manitoba Interactive Digital Media Tax Credit
Financial Analysis Branch
Manitoba Growth, Enterprise and Trade
1010 – 259 Portage Avenue
Winnipeg, MB  R3B 3P4
Email: FABGET@gov.mb.ca
Phone: 204-945-2770

 

MIDMTC Program Materials:

1 - Program Information and Main MIDMTC Application/Claim Forms

2 - Other Forms/Templates Companies May Require for their MIDMTC Applications/Claims

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