Finance
Business, Tourism, Culture and Rural Development

October 13, 2015

Supporting Innovative Industries to Foster the Economy

Province’s Interactive Digital Media Tax Credit Now Available

Companies working with interactive digital media can now avail of a new tax credit specially designed to support businesses in this industry. The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit was announced as part of Budget 2015: Balancing Choices for a Promising Future. The details of the credit have been finalized and the regulations were implemented this week.

“Our government expects to invest approximately $1 million in this tax credit, based on the number of companies currently working with interactive digital media in the province. This credit will help support and retain the current interactive digital media industry in the province and encourage future growth. Our government moved forward with this program as a way to assist in leveling the competitive landscape of this province for digital media companies considering where to locate. Through our investment in this initiative we continue to make strategic decisions that are diversifying our economy.”
- The Honourable Ross Wiseman, Minister of Finance and President of Treasury Board

The Interactive Digital Media Tax Credit will:

  • Provide a 40 per cent refundable provincial tax credit on eligible salary and remuneration expenditures to IDM companies in the province incurred on or after January 1, 2015;
  • Help companies with the competitive cost of labour in the province up to a maximum credit value of $40,000 per person and to a maximum of $2 million per company, per year; and
  • Have a five-year sunset with renewal subject to a program evaluation.

For further details of the tax credit visit http://www.fin.gov.nl.ca/fin/tax_programs_incentives/business/idmtc.html.

“Our government is proud to continue to support a diverse economy and growing industries. This new tax credit will help to grow the digital media industry in our province by encouraging growth of existing companies and serving as a great incentive for other companies to expand or relocate to Newfoundland and Labrador.”
- The Honourable Darin King, Minister of Business, Tourism, Culture and Rural Development

The Provincial Government continues to put money back in the pockets of Newfoundlanders and Labradorians through tax measures. This is in line with government’s Population Growth Strategy that supports individuals and families who choose Newfoundland and Labrador as their home with a focus on workforce, families, communities and immigration.

“The technology sector represents a great opportunity for economic diversity and growth in our province. Initiatives such as the Newfoundland and Labrador Interactive Digital Media Tax Credit demonstrate the positive linkages between policy initiatives and business results by helping technology companies to be competitive at a global level while locally based. At NATI we believe these initiatives are critical to ensure the people of Newfoundland and Labrador have a vibrant and diversified future economy.”
- Chris Dillon, Chair, Newfoundland and Labrador Association of Technology Industries

Last year alone residents and businesses benefited from approximately $700 million in tax measures, including enhancements to the seniors’ benefit, reductions in the small business corporate income tax rates, and low income tax reductions. The Provincial Government’s goal is to stimulate growth and intensify efforts to pursue the significant opportunities available to the province to ensure a vibrant economy over the long term.

QUICK FACTS

  • The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit is now available to businesses working in this industry.
  • Based on the number of companies currently working with interactive digital media in Newfoundland and Labrador, the Provincial Government expects to invest approximately $1 million in this tax credit.
  • The Interactive Digital Media Tax Credit will provide a 40 per cent refundable provincial tax credit on eligible salary and remuneration expenditures to IDM companies in the province incurred on or after January 1, 2015.
  • The Provincial Government continues to put money back in the pockets of Newfoundlanders and Labradorians through tax measures. Last year alone residents and businesses benefited from approximately $700 million in tax measures, including enhancements to the seniors’ benefit, reductions in the small business corporate income tax rates, and low income tax reductions.

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Media contacts:

Jennifer Tulk
Director of Communications
Department of Finance and Human Resource Secretariat
709-729-6830, 728-4104
jennifertulk@gov.nl.ca
Tansy Mundon
Director of Communications
Business, Tourism, Culture and Rural Development
709-729-4570, 693-1865
tansymundon@gov.nl.ca

2015 10 13                             2:50 p.m.