Digital Media Tax Credit (DMTC) - Atlantic Canada Business Grants

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia.

Comments on Funding:

Funding will be the lesser of 50% of eligible Nova Scotia labor expenditures, or 25% of total expenditures made in Nova Scotia.

A 10% geographic area bonus on labor expenditures (5% bonus on total expenditures) is available for products developed outside the Halifax Regional Municipality.

Corporations may also be eligible to receive a credit on marketing and distribution expenditures to a maximum of $100,000 per product. These expenditures may be made outside the province.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a taxable Canadian corporation,
have a “permanent establishment” in Nova Scotia, meaning: a fixed place of business in the province, assets in the province to develop the product and personnel in the province who can contract on behalf of the corporation,
be developing an interactive digital media product,
not be a prescribed labor-sponsored venture capital corporation under the federal Income Tax Act.

To be eligible for the geographic area bonus, the corporation must:

have a permanent establishment outside the Halifax Regional Municipality,
pay at least 50% of salaries for the development of the product to employees who work out of a permanent establishment in the eligible geographic area.

Application Steps:

The applicant must submit the completed, dated and signed application forms to the Nova Scotia Department of Finance and Treasury Board.

Documentation Needed:

The applicant must submit the following documentation:

the application form,
Declaration of Residency Forms for all employees listed in the expenditure report,
invoices for all third party work completed,
statements of eligible remuneration for all invoices,
statements detailing the qualifying expenditures and total expenditures of the “eligible product” (Affidavit, Review Engagement Report or Audit Report),
Articles of Incorporation and Memorandum of Association,
Shareholders Registry,

Corporate chart,
Gantt Chart,
the completed Digital Media Product,
the chain of title documentation - if the applicant does not retain principle ownership of the “eligible product”, he must provide a Certificate of Election form signed by the entity who owns the property rights,
Exchange of Information Form, which permits the Taxation and Federal Fiscal Relations Division (TFFRD) to exchange information related to the application for audit and verification purposes.

Program Contact:

Nova Scotia Department of Finance - Digital Media Tax Credit

FITC.zip

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