MN: New tax credit to help digital media
By Mario Cywinski | September 21, 2008
MN: the digital media industry in the province is in for quite a treat with a new tax credit on its way.
Launched in mid-September the Digital Media Tax Credit will be available to all companies that produce and develop interactive digital media projects within the province.
"We believe the tax credit will allow media developers in Manitoba to expand their businesses, while appealing to out-of-province developers who may be considering Manitoba as a place to set up shop," said Science, Technology, Energy and Mines Minister Jim Rondeau.
Here is a list of the vitals of the new credit announced in the province's spring budget:
- maximum credit will be $500,000;
- will be available for projects that start after April 9, 2008 and before 2011;
- a company must be permanently located in the province and be taxed within Canada;
- the credit is to equal 40 per cent of remuneration paid on labour costs that the province has approved.
The Canada Revenue Agency will be responsible for administering the new credit, as it will be included as part of a company's annual income tax return.
It is interesting to note that the digital media sector has grown 850 per cent over the past three years in the province. This is likely as a result of Canada being home to the forth largest video gaming industry in the world.
For more information on the tax credit call: 945-0589.
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