Programs and Incentives
Manitoba Interactive Digital Media Tax Credit
The Manitoba Interactive Digital Media Tax Credit (MIDMTC) is a refundable corporate tax credit designed to help stimulate economic growth and job creation in Manitoba's interactive digital media industry and attract new investment to the sector. The MIDMTC provides up to a 40% credit to businesses 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. Common examples of interactive digital media products include video games, simulators and multi‑pathed, participatory e-learning products.
Budget 2023 expanded eligibility for the Interactive Digital Media Tax Credit to allow for more flexible forms of employee compensation and incentives to be included as eligible labour expenditures, effective April 1, 2023. Expanded eligibility now allows for the inclusion of other employee labour expenses beyond base salary and wages; including project related bonuses (e.g., project completion bonus to mark various milestones) and employee benefits directly attributable to the project. Labour expenditures such as bonuses tied to profits or revenues, stock options and signing bonuses are still ineligible labour expenditures under the tax credit.
Operating systems, products used primarily for interpersonal communication, promotional products and adults-only rated video games are not eligible for this tax credit. Products developed for the internal use of the applicant company, or for the internal use of a non arms-length purchaser, will not qualify.
News Release
Province Makes Enhancements to Manitoba Interactive Digital Media Tax Credit as Part of Budget 2021
June 25, 2021
For more information, please contact:
Manitoba Interactive Digital Media Tax Credit
Economic Programs Branch
1010 – 259 Portage Avenue
Winnipeg, MB R3B 3P4
Email: ecdevprograms@gov.mb.ca
Phone: 204-451-7099
MIDMTC Program Materials:
Available in alternate formats upon request.
1 - Program Information and MIDMTC Application
2 - Other Forms/Templates Companies May Require for their MIDMTC Applications/Claims
- MIDMTC Product Description Template (MS Word file)
- MIDMTC Commercialization Plan Template (MS Word file)
- MIDMTC Budget Template (MS Excel file)
- MIDMTC Declaration of MB Residency/Consent Form (PDF)
- MIDMTC 3rd Party Declaration Form (PDF)
