Nova Scotia Digital Media Tax Credit (NSDMTC)
Eligibility & Details
What this program funds and who can apply
Program Description
Tax credit of 25-50% of qualifying expenditures for interactive digital media development in Nova Scotia, with an additional 10% geographic bonus for development outside Halifax and up to $100,000 in marketing/distribution costs per product. Supports video game studios, interactive software developers, and digital media producers.
Eligibility Requirements
- Corporation with qualifying expenditures in Nova Scotia
- Developing eligible interactive digital media products
- Products must meet interactivity and digital media requirements
- Must obtain eligibility certificate from the province
- Expenditures must be incurred in Nova Scotia
Quick Assessment
Funding Details
- Amount
- 25-50% of qualifying expenditures; +10% geographic bonus outside Halifax; +$100K marketing/distribution per product
- Type
- Tax Credit
- Level
- Provincial
- Co-Funding
- Up to 50% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe 10% rural bonus for development outside Halifax is a significant differentiator — studios in Dartmouth, Truro, or other non-Halifax locations get up to 60% effective rate. Nova Scotia's lower cost of living combined with this credit makes it increasingly attractive for remote-friendly game studios. The $100K marketing allowance per product is often overlooked but valuable for indie studios launching on Steam or console platforms.
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Success Profile
Video game studios and interactive media developers operating in Nova Scotia. Growing cluster of indie studios in Halifax and surrounding areas. Companies with 5+ Nova Scotia developers typically see meaningful credit amounts. Studios developing original IP benefit most from the higher rate tiers.
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Evaluation Criteria
Entitlement credit — no scoring or competitive evaluation. Eligibility assessed against three criteria: (1) corporation has permanent establishment in Nova Scotia, (2) product qualifies as an interactive digital media product under the regulations, and (3) expenditures are eligible NS labour or total expenditures. The key determination is whether the product meets the interactivity requirements — it must primarily function to educate, inform, or entertain through user interaction.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 6
Eligible Expenses 5
- Nova Scotia labour expenditures directly related to developing an eligible interactive digital media product
- Total expenditures incurred in Nova Scotia associated with product development (up to 30% rate)
- Marketing and distribution expenditures up to $100,000 per product (including outside-province expenses)
- Salaries and wages of NS-based developers, artists, and technical staff
- Costs of contracting eligible services from NS-resident individuals
Ineligible Expenses 6
- Expenses claimed under other NS tax credits (Section 41 or 47 of the NS Income Tax Act)
- Labour expenditures for employees outside Nova Scotia
- Administrative and overhead costs not directly related to development
- Marketing expenses exceeding $100,000 per product
- Expenses for products that are primarily passive content (video, audio not meeting interactivity test)
- Costs for products primarily used for gambling or pornographic content
Intake Periods
Year-round. No application deadlines. Part A submissions accepted anytime. Part B claims filed with annual corporate tax return.
Deadline Notes
Ongoing entitlement program. Applications processed year-round. Claims filed with annual corporate tax return after obtaining eligibility certificate.
Open Application Portal →Ineligible Organizations
- Labour-sponsored venture capital corporations prescribed under the federal Income Tax Act
- Corporations without a permanent establishment in Nova Scotia
- Non-Canadian corporations (must be a taxable Canadian corporation)
- Tax-exempt organizations
- Corporations developing products that are primarily passive content or fail the interactivity test
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskLow. Entitlement credit with no clawback provisions once certificate is issued and credit is claimed on a valid tax return. Risk of reassessment if CRA determines product did not meet eligibility criteria or expenditures were overstated.
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How NSDMTC Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Nova Scotia Digital Media Tax Credit ... | 25-50% of qualifying expenditures | Moderate | Tax Credit Offset | Ongoing |
| Canada Media Fund | up to $250K | Hard | Mixed (Advance + Reimb.) | Ongoing (multiple... |
| Nova Scotia Creative Industries Fund | Up to $30,000 | Easy | Reimbursement | Annual deadline... |
| Strategic Response Fund (formerly Str... | Up to $50 million | Hard | Mixed (Advance + Reimb.) | Ongoing — continuous... |
| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Annual intake window.... |
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