Monday July 7, 2025 | BURNABY, BC – reporting from VICTORIA, BC
by Mary P Brooke | Island Social Trends
As announced today in Burnaby at the well-known digital game developer company Electronic Arts (EA) Sports Studio, the digital media sector in BC will get a tax credit boost from 17.5% to 25% effective September 1, 2025.
“Video games are big business in our province, supporting thousands of jobs,” said Premier David Eby. “We want to keep growing our tech sector to create even more opportunity for British Columbians. This tax credit will help game developers hire, attract new investment and keep building some of the best games in the world.”
Finance Minister Brenda Bailey pointed out how the tax credit lift is to provide certainty for the industry and could help keep more jobs in BC at a time when the overall economy is straining under the uncertainties of the trade challenges faced by Canada and certain economic sectors.
Businesses can claim the credit on salaries and wages paid during development of interactive digital media, which include video games, educational software and simulators.
A similar digital tax credit is higher in many other provinces including at 40% in Ontario, Quebec and Manitoba, and as high as 50% in Nova Scotia, according to Bailey today.
The finance minister said that BC has other perks to offset the rate that is lower in BC than in other provinces including essentially ‘getting to live here’ — presumably climate, other social tax benefits and beauty of the region — even though the cost of housing particularly in Greater Vancouver is extremely high.
Boosting the economy:
There are 161 video game companies and 230 immersive technology companies in B.C., according to the Entertainment Software Association of Canada.
- Almost half of all video game companies in B.C. are small, made up of 10 people or fewer.
- Large developers in the sector with operations in B.C. include Microsoft, Nintendo, EA, Take-Two and CD Projekt Red.
- The interactive digital media tax credit helps companies offset labour costs from developing their products.
- Other industries that can access income tax credits in B.C. include film and TV, mining exploration, shipbuilding and book publishing.
Herself a game developer entrepreneur:
“As a game developer and entrepreneur, I know how important people are to success in the industry,” said Brenda Bailey, Minister of Finance.
“We have increased the credit to support jobs for the skilled, hard-working people in interactive digital media, whether they are a software engineer at a VR developer or an artist at an independent game studio. We stand by our developers and can’t wait to see what they create next.”
The changes support growth in the industry. It employs more than 20,000 people in B.C. and adds more than $1 billion to the province’s gross domestic product every year, according to CreativeBC.
Eby also pointed out today how his young family has enjoyed this first part of summer vacation by including gaming in their activities.
Electronic Arts:
“Electronic Arts appreciates B.C.’s continued commitment to the interactive digital media sector through enhancements to the interactive digital media tax credit,” said Natali Altshuler, COO, EA SPORTS Studios.
“Long-term support like this reflects the Province’s recognition of the industry’s value and enables companies like ours to continue contributing to B.C.’s creative and innovative economy.”
EA originals include The Sims, Split Fiction, Immortals of Aveum, Tales of Zau and It Takes Two. Newer games include Dragon Age and a range of sports games.
Games are played on a range of platforms including PC, PlayStation, Xbox, Nintendo Switch, Mobile and Pogo.
Province’s Integrated Marketplace Initiative:
Technology companies in B.C. can also tap into the Province’s Integrated Marketplace Initiative. The Province has committed an additional $30 million for the initiative that helps tech companies test their products.
Eligible small studios can also benefit from B.C.’s newly enhanced venture-capital tax credit program, which has an increased individual limit of $300,000 to encourage investment in small businesses in B.C.
The increased tax credit for interactive digital media was introduced in Budget 2025 and is part of the Province’s plan to grow the economy, encourage investment and protect jobs in B.C.
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NEWS SECTIONS: BUSINESS & ECONOMY | DIGITAL TECH