Manitoba extends interactive digital media tax credit to 2019

The Manitoba government hopes to see more digital media startups producing apps, games and other technologies in the province by extending its interactive digital media tax credit.

The refundable income tax credit provides a 40 per cent rebate on eligible labour, marketing and distribution costs related to the development of interactive digital media products in Manitoba.

The credit, which was introduced in 2008,has been extended to December 2019, the province announced Wednesday.

"Renewing this tax credit means more young people will have the opportunity to be part of this exciting and expanding segment of our fast-growing economy," Jobs and the Economy Minister Kevin Chief said in a news release.

To qualify for the tax credit, a company must be permanently based in Manitoba and projects must be approved by the Department of Jobs and the Economy.

During a news conference in Winnipeg, Chief tried out a program madeby The Campfire Union, a local virtual reality startup.

"As a virtual reality startup, it is very challenging to grow your company while maintaining the pace of innovation required in the interactive digital media sector," said Lesley Klassen, the company's chief innovation officer.

"We are using the Manitoba Interactive Digital Media Tax Credit to hire a developer. It will help us stay competitive globally."

The province says the tax credit has helped companies that work in website and app development, arts and culture, film, video and marketing, health care and education.