B.C. is increasing a tax credit for video game developers in an attempt to boost the industry in the province.
"Video games are big business in our province, supporting thousands of jobs," Premier David Eby said in a news release. "We want to keep growing our tech sector to create even more opportunity for British Columbians."
The tax credit for interactive digital media, which includes video games and virtual reality, will be increased from 17.5 per cent to 25 per cent and made permanent.
The credit can be claimed on salaries and wages paid during the development of video games, educational software or simulators.
Finance Minister Brenda Bailey is co-founder of Vancouver-based video game developer Deep Fried Entertainment, and made the announcement alongside Eby at Electronic Arts' Burnaby offices on Monday, July 7.
"For those of you who aren't close to the games industry, these folks up here can tell you, games are incredibly difficult to make," Bailey said. "They are deeply complex technological accomplishments."
The interactive digital media industry employs 20,000 people in B.C., and adds $1 billion per year to the province's gross domestic product, according to CreativeBC. This independent agency advocates for creative industries in B.C. and helps manage these types of tax credits.
Bailey highlighted how a strong video game development industry can boost the rest of the tech sector in the province.
"I have personally witnessed many people who've come from the games industry and gone into other sectors of our economy, other sectors of technology, and helped it grow," she said. "This is an important part of the story."
Bailey said several other provinces have similar subsidies of between 40 and 50 per cent. She did not want B.C. to go higher because there are other factors drawing people to the province, and she did not want to go past the break-even point for collecting tax revenue versus providing credits.
