Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
BC Backs VR and Gaming Studios With Tax Credit Boost
BC Fintech Tax Credit | July 8, 2025
Image: Freepik
BC Government Increases Digital Media Tax Credit to 25% Permanently
British Columbia is making perman Interactive Digital Media Tax Credit (IDMTC) and raising the rate to 25%, effective September 1, 2025. The expanded credit applies to qualified salaries and wages for the development of video games, virtual reality (VR) applications, educational software and simulators.
The IDMTC was first introduced in 2010. The 25% rate was recently put on the table as a temporary increase under Budget 2025 which is now being made permanent. It replaces the earlier 17.5% baseline rate and is aimed at helping creators retain staff, attract capital, and grow jobs in the province’s interactive digital media sector. According to CreativeBC, the industry contributes over $1 billion to provincial GDP and supports over 20,000 jobs.
David Eby, BC Premier, said that it will boost long term investment:
“This tax credit will help game developers hire, attract new investment and keep building some of the best games in the world.”
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
Brenda Bailey, Finance Minister and former game developer, emphasized the impact on both indie and enterprise studios:
“Whether they are a software engineer at a VR developer or an artist at an independent game studio, we stand by our developers.”
The province also announced:
- Additional $30 million CAD investment in its Integrated Marketplace Initiative, designed to help BC companies pilot and scale new tech products
- Raised the venture capital tax credit limit to $300,000 per investor per year to attract more early stage capital
There are currently 161 video game companies and 230 immersive tech firms operating in BC, many of them with fewer than 10 employees. Global developers with a presence in the province include Microsoft, Nintendo, EA, Take-Two, and CD Projekt Red.
Why This Matters
This permanent tax credit increase will strengthen the planning outlook for studios, venture funds, and fintechs financing interactive media. Companies using revenue-based financing or IP-backed lending models now will be operating in a more stable tax environment.
See: U.S. Tax Bill Could Drive Capital Back to Canada
Investors and lenders can model developer cash flow with improved accuracy, especially for VR and immersive media startups that operate on tight burn rates. For full details, visit the official IDMTC program page.
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