The Alberta Interactive Digital Media Tax Credit (IDMTC) is for eligible registered IDM corporations that develop interactive digital media credit products in Alberta after April 1, 2018.
The credit is calculated at 25% of eligible salary and wages incurred in the tax year and is FULLY refundable. That means you are required to first apply it to income taxes payable but if you clear that balance you will still get the amount of the credit as a refund! Eligible corporations that hire under-represented populations may qualify for an additional 5% through the Diversity and Inclusion program component.
Here is an example, if you have $200,000 in eligible salaries and wages, you may be entitled to $50,000 in the form of this tax credit. (I know – wow!)
The process to apply can be a little intimidating, but it is really straightforward once you get into it.
The intention of this article was to review the process but we have found the guidelines really walk you through this best so instead, we have included that guideline here:
Once you are approved as an IDM and receive your certificate you then claim the credit when completing your Alberta Corporate Tax Return.
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This blog is intended for general use and understanding. Specific cases can alter recommendations which are often based on current court cases. These recommendations may evolve as new court cases or CRA interpretations become available. Thus direct professional advice is always recommended to ensure you are getting the right information for you and your business.