Digital Media Tax Credit

📋 Eligible Entities - Corporations registered in Nova Scotia or operating a permanent establishment in the province - Canadian-controlled private corporations (CCPCs) are eligible - Sole proprietors and partnerships with a Nova Scotia business address - Non-profit organizations engaged in digital media development - Foreign-owned companies with a Nova Scotia operations base - Entities must be actively engaged in the development of interactive digital media products ### 💰 Funding Details - Credit Rate: 50% refundable tax credit on eligible local labour costs - Alternative Credit Rate: 25% refundable tax credit on total eligible spending in Nova Scotia - Maximum Per Project: No specified cap mentioned; subject to program budget availability - Repayability: Non-repayable refundable tax credit (treated as a tax refund) - Timing: Credits are applied against corporate income tax or remitted as a refund - Currency: Canadian dollars ### 🛠️ Approved Expenses - Labour Costs (50% credit option): - Salaries and wages for Nova Scotia-based employees - Contractor fees for development work performed in Nova Scotia - Payroll-related costs - Total Project Spending (25% credit option): - Software development and programming - Digital asset creation and design - Production and testing costs - Technology infrastructure and tools purchased in Nova Scotia - Professional services related to product development ### ⚠️ Conditions & Milestones - Product Requirement: Must result in an interactive digital media product (e.g., software, web applications, games, digital content platforms) - Nova Scotia Nexus: Work must be performed in Nova Scotia; spending must occur within the province - Tax Compliance: Applicant must be in good standing with Canada Revenue Agency and provincial tax authorities - Reporting: Detailed documentation of eligible labour costs or total spending required for verification - Credit Selection: Must elect either the 50% labour cost credit or 25% total spending credit—cannot claim both - Timing: Credit claimed through corporate tax filing; must be applied in the taxation year expenses were inc