B.C. Premier David Eby visited Electronic Arts in Burnaby on Monday, July 7, 2025, to announce an increase in the tax credit offered to video game developers. Photo credit: Darryl Dyck / The Canadian Press
British Columbia has announced a significant tax credit increase for the creators of video games and virtual reality software, aiming to strengthen its local tech industry and compete globally. Starting September 1, the province will permanently boost its interactive digital media tax credit from 17.5% to 25%.
Premier David Eby announced on Monday at the Burnaby offices of Electronic Arts (EA), one of the world’s leading video game developers. He emphasized that the decision is part of a broader strategy to build a more self-reliant economy, especially in light of trade pressures from the United States.
Eby said that earlier threats from the U.S., particularly those involving heavy tariffs on Canadian entertainment content, were a “wake-up call” for B.C. to strengthen industries that can thrive independently.
Helping B.C.’s Tech Scene Grow
Finance Minister Brenda Bailey explained that the new rate is meant to strike a balance. While other provinces have offered even higher credits, B.C. already has strong advantages, including a favourable tax environment and a reputation for attracting international talent.
Bailey added that this move supports what she called the “knowledge economy,” which includes fields like digital media, tech, and software development.
Local Impact and Job Creation
According to Creative BC, a government agency that supports the province’s creative sectors, the interactive digital media industry employs about 20,000 people in B.C. and adds more than $1 billion to the province’s economy each year. This includes video game studios, virtual reality developers, and companies creating educational or simulation software.
With the tax credit increase, the government expects to spend around $141 million on the program in 2025–26, rising to over $180 million by 2027–28.
Natali Altshuler, Chief Operating Officer of EA SPORTS Studios, welcomed the change, saying it shows the province recognizes the industry's value. She highlighted that the tax support allows companies like EA to grow their presence in B.C. and continue investing in local talent.
Support for Small Studios
While EA represents the big players, the policy shift also benefits smaller developers. The Entertainment Software Association of Canada noted that nearly half of B.C.'s 161 video game companies have 10 or fewer employees. Additionally, the province is home to 230 companies focused on immersive technologies like VR and AR.
For these smaller teams, the increased tax credit could mean hiring new staff, investing in better tools, or scaling up their creative ideas.
U.S. Reactions and B.C.’s Stance
Earlier this year, former U.S. President Donald Trump threatened to impose 100% tariffs on foreign-made films after B.C. increased film tax credits to attract more Hollywood productions. Some worry that a similar reaction might follow this new gaming tax credit.
However, Eby made it clear that the decision to increase the credit was made in B.C.’s own interest. “We’ll deal with any U.S. reaction if and when it happens,” he said confidently.
