This program is designed specifically for businesses like yours in the interactive digital media industry. By applying, you can receive up to 40% in tax credits on qualified labour expenditures and some marketing and distribution expenses. This can significantly reduce your costs and help you invest more in your projects.

Key Benefits:

• Up to 40% tax credit on eligible expenses
• Refundable credit, meaning you get money back even if you owe no taxes
• Expanded eligibility to include project-related bonuses and employee benefits

Why Apply?

• Boost your cash flow: Use the savings to reinvest in your business.
• Competitive edge: Lower costs can help you price your products more competitively.
• Easy qualification: If you meet the basic criteria, the process is straightforward.

Applying for this program can provide the financial support you need to grow and innovate, making it an excellent opportunity for your business.

Type of Financing:

• Refundable Tax Credit: The Manitoba Interactive Digital Media Tax Credit (MIDMTC) offers a refundable corporate income tax credit of up to 40% on qualified labor expenditures and some marketing and distribution expenses incurred in the development of eligible interactive digital media products.

Repayment Terms and Interest Rates:

• Repayment Criteria: The tax credit is refundable, meaning businesses can receive a portion of the credit as a refund if the credit amount exceeds their tax liability.
• Eligible Expenses: Qualified labor expenditures, marketing, and distribution expenses related to the development of interactive digital media products are eligible for the tax credit.
• Ineligible Expenses: Operating systems, products primarily for interpersonal communication, promotional products, and adults-only rated video games are not eligible for the tax credit.

Fees:

• No Fees: There are no specific fees associated with applying for or receiving the Manitoba Interactive Digital Media Tax Credit.

The Manitoba Interactive Digital Media Tax Credit is a great opportunity for your business. This program offers a refundable tax credit of up to 40% on qualified labor expenses and some marketing and distribution costs. This means you can get back a significant portion of what you spend on developing interactive digital media products.

You can use the tax credit for:

• Salaries and wages for your Manitoba-based employees.
• Project-related bonuses and employee benefits directly tied to the project.

To qualify for the full 40% credit, your business must pay at least 25% of its salaries and wages to Manitoba residents. If you pay less than this, you can still qualify for a 35% tax credit if you incur at least $1 million in qualifying Manitoba labor expenses annually.

This program is designed to help your business grow by reducing development costs and encouraging investment in new projects. It’s a valuable way to support your business financially while contributing to the local economy.

1. Apply for a Certificate of Eligibility:
Visit the provided link to access the Certificate of Eligibility application form. Complete and submit this form before starting any project work.

2. Prepare Necessary Documentation:
Gather the following documents to support your application:

• Financial statements
• Business plan
• Product description using the MIDMTC Product Description Template
• Commercialization plan using the MIDMTC Commercialization Plan Template
• Estimated budget using the MIDMTC Budget Template
• Declaration of Manitoba Residency/Consent Form
• 3rd Party Declaration Form (if applicable)

3. Submit the Application:
Submit the completed Certificate of Eligibility application along with the prepared documentation to the Economic Programs Branch via email or mail.

4. Await Review and Approval:
Your application will be reviewed on a case-by-case basis. Be prepared to provide additional information if requested.

5. Receive Certificate of Eligibility:
Once approved, you will receive a Certificate of Eligibility. This certificate is required to claim the tax credit.

6. Track Eligible Expenses:
Keep detailed records of all qualified labour expenditures and eligible marketing and distribution expenses incurred during the development of your interactive digital media product.

7. File for the Tax Credit:
At the end of the fiscal year, file for the Manitoba Interactive Digital Media Tax Credit using the Certificate of Eligibility and your documented expenses.

8. Maintain Compliance:
Ensure ongoing compliance with the program requirements, including any updates or changes to eligible expenses and reporting criteria.