Alberta scraps plans for video game tax credit

Alberta has scrapped its plans to reinstate a tax credit for video game developers, according to a report. 

Premier Danielle Smith proposed a video game and multimedia tax credit in 2022 to keep Alberta competitive with provinces like Quebec, Ontario, and British Columbia, which offered tax credits ranging from 17.5% to 40%. 

However, The Logic has learned that the Alberta government will now support the “digital media gaming industry through strategic funding partnerships and investments,” according to innovation minister Nate Glubish’s press secretary Jonathan Gauthier.

The province’s government believes strategic partnerships are “the most effective and sustainable” way to support game development, citing collaborations with Shred Capital and Flying Fish Ventures to invest in Alberta-based companies.

Pushing for stronger tax incentives

Elsewhere in Canada, British Columbia has made its Interactive Digital Media Tax Credit permanent and will increase it from 17.5% to 25% in September 2025. 

The boost aims to support game developers, educational software creators, and VR/AR innovators, fostering local jobs and IP.

In the UK, meanwhile, TIGA recently proposed increasing the UK’s Video Games Expenditure Credit (VGEC) from 34% to 39% and raising qualifying expenditure from 80% to 100% in its submission to the Government’s Spending Review. 

The trade body also suggested a 53% Independent Games Tax Credit (IGTC) for games with budgets up to £23.5 million. TIGA argues these changes would drive job creation, investment, and regional industry growth.