Alberta scraps tax credit plans for Canadian game studios
Plans to revive a tax credit for developers in Alberta, Canada, have been scrapped.
According to The Logic, Premier Danielle Smith announced plans to revive the scheme in November 2022, but now Alberta officials intend to “support the digital media gaming industry through strategic funding partnerships and investments” instead of offering “sector-specific” tax credits.
Alberta’s Innovation Minister Nate Glubish was tasked by Smith to develop a tax proposal to match that of other key Canadian development hubs such as Quebec, Ontario, and British Columbia, which were offering tax credits to game makers of 37.5%, 40%, and 17.5%, respectively, with the latter increasing to 25% in September.
Jonathan Gauthier, press secretary for Glubish, told the publication that strategic partnerships were “the most effective and sustainable” way to aid game development in Alberta.
Canada’s games industry contributed $5.1 billion to its GDP in 2024, reflecting a 3% increase in the sector since 2021.
The total contribution of $5.1 billion to Canada’s GDP is estimated to be $3.9 billion directly from the sector, with an additional $1.2 billion from broader economic effects including the supply chain and employee wages.
