News Summary

The Government of British Columbia has made its Interactive Digital Media Tax Credit (IDMTC) permanent and increased it from 17.5% to 25%, as announced in the province’s 2025 budget. This initiative aims to attract talent and foster growth in the video game, VR/AR, and educational software industries. Tax credits like these have significantly contributed to Canada’s video game industry, now a $5.1 billion sector. B.C. ranks as the third-largest province for game development, following Quebec and Ontario, with major studios like EA Vancouver and Xbox-owned The Coalition. The move comes amid challenging times for the global gaming industry, with numerous layoffs and studio closures. In Canada, the number of ‘micro studios’ fell by 25% between 2021 and 2024, with B.C. experiencing a 35% reduction in such small teams.