British Columbia is doubling down on its fast-growing interactive digital media sector with a major tax incentive aimed at game studios and VR developers.
Home to 161 video game companies and 230 immersive technology firms, B.C. has emerged as a global hub for digital creativity. Nearly half of these studios are small—ten people or fewer—while major players like Microsoft, Nintendo, EA, Take-Two, and CD Projekt Red also have a presence in the province.
Collectively, the sector supports more than 20,000 jobs and contributes over $1 billion to the provincial economy each year, according to Creative BC.
To fuel further growth, the Province is increasing its Interactive Digital Media Tax Credit from 17.5% to 25%, effective September 1, 2025, and making the credit permanent. It applies to salaries and wages paid for developing products like video games, educational software, and simulators.
“Video games are big business in our province,” said Premier David Eby. “This tax credit will help developers hire, attract new investment, and continue building some of the best games in the world.”
“Whether you’re a software engineer at a VR developer or an artist at an indie studio, this credit supports jobs and innovation,” added Finance Minister Brenda Bailey.
The move was praised by local industry leaders, including Electronic Arts.
“B.C.’s long-term support reflects the Province’s recognition of our industry’s value,” said Natali Altshuler, COO of EA SPORTS Studios. “It enables companies like ours to continue contributing to B.C.’s creative and innovative economy.”
Beyond the tax credit, B.C. is also investing in broader tech-sector support:
An additional $30 million for the Integrated Marketplace Initiative, which helps startups pilot and test emerging technologies.
A boost to the venture capital tax credit program, raising the individual annual limit to $300,000 to spur early-stage investment.
These incentives, introduced as part of Budget 2025, aim to grow the economy, encourage private-sector investment, and solidify B.C.’s position as a leader in the global digital media landscape.
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