New Brunswick Digital Media, Film & Interactive Media Credits (2025 Guide)
New Brunswick is a growing centre for digital media, video game, film, television, animation, and interactive content production in Atlantic Canada. The province's generous, refundable tax credits for digital media and film are designed to attract creative and technology businesses, foster local talent, and encourage investment in high-value, export-oriented projects. These incentives have helped grow the NB tech and media sector, create jobs, and stimulate local economic development—making them a cornerstone of the region’s innovation strategy.
NB digital media and film credits are among the most accessible and stackable in Canada, offering real cash refunds to both local and international companies (with a NB presence), and can be combined with federal programs for maximum benefit. The programs are a major reason why NB is seeing growth in video game, animation, and film/TV production, with new studios, post-production houses, and international productions choosing the province.
- NB Digital Media Tax Credit: For interactive media, games, e-learning, and animation
- NB Film Tax Credit: For film, TV, documentary, and animation productions
- Bonus Credits: For regional hires, first-time projects, diversity, and more
- Stacking: Coordinated with federal CPTC, PSTC, IDMTC, SR&ED, and other incentives
Key New Brunswick Credits for Digital Media & Film
- New Brunswick Digital Media Tax Credit – Refundable credit for eligible salaries and expenditures in the creation of interactive digital media products (video games, e-learning, mobile apps, animation, etc.).
- Eligibility: Incorporated companies (Canadian or foreign) with a permanent establishment in NB. Partnerships may qualify if structured appropriately.
- Eligible Projects: Interactive digital media (video games, e-learning, animation, mobile/web apps, AR/VR, simulation software, etc.). Excludes pure marketing/promotional sites, or non-interactive content.
- Eligible Expenditures: Primarily NB-resident salary/wages, plus certain NB-based subcontract and contractor costs. Bonuses for hiring first-time graduates or diversity hires may apply.
- Credit Rate: Up to 40% of eligible NB labour costs, with potential bonuses for regional hiring, diversity, or first-time projects.
- Step-by-Step Claim:
- Register your company and proposed project with Opportunities NB before starting work.
- Receive a certificate of eligibility for your project (may require a business plan, project description, and budget).
- Track all eligible NB payroll, work hours, and associated expenditures throughout the project.
- After project completion (or annually for ongoing work), submit a detailed claim to Opportunities NB with payroll reports, employee lists, and proof of NB residency.
- Once approved, file the NB corporate tax return (T2 with NB428/NB479 schedules) and attach the certificate to claim the refund or credit. Refunds are paid even if no tax is owed.
- Calculation Example: If you paid $500,000 in eligible NB salaries for a video game project, your baseline credit would be $200,000 (40%). With a 5% bonus for regional hiring, this could rise to $225,000.
- Documentation: Payroll reports, T4s/RL-1s, signed contracts, proof of NB residency, project descriptions, and evidence of eligibility for any bonuses.
- New Brunswick Film Tax Credit – Refundable credit for eligible labour costs and expenditures for film/TV, documentaries, short film, and animation productions completed in NB.
- Eligibility: NB-incorporated production companies (Canadian-controlled for domestic credit; service companies for foreign projects).
- Eligible Projects: Film, TV, documentary, animated series, shorts, and approved digital/interactive productions.
- Eligible Expenditures: NB-resident labour (cast, crew, animation, etc.), plus some qualifying goods/services purchased in NB.
- Credit Rate: Up to 40% of eligible NB-resident salaries, with possible bonuses for shooting outside major centres, regional hiring, or diversity.
- Step-by-Step Claim:
- Apply for pre-approval and a certificate of eligibility from NB Film & TV Services before principal photography begins.
- Submit a detailed budget, financing plan, and shooting schedule.
- Hire NB-resident cast and crew; keep payroll records and contracts.
- After completion (or annually for series), submit a final cost report and supporting documentation to NB Film & TV for review.
- Receive a final certificate, then file with your NB T2 corporate return (with all supporting documents) to receive your refund.
- Calculation Example: $700,000 in eligible NB labour on a feature film = $280,000 refundable credit (40%). Regional/bonus incentives can increase this up to 50% in some cases.
- Documentation: Payroll (T4s, pay stubs), residency declarations, contracts, call sheets, final cost reports, and all certificates.
- Bonus Credits – Additional incentives for hiring NB residents, filming outside major urban areas, or working with first-time producers.
- Regional Hire Bonus: Extra 5% for hiring NB grads or for projects outside Moncton/Fredericton/Saint John.
- Diversity/First-Time Producer Bonus: Additional 5–10% for projects meeting diversity, inclusion, or new producer criteria.
- Calculation Example: $200,000 in base NB salaries, 40% base + 5% regional + 5% diversity = $100,000 total credit (50%).
- Documentation: Proof of NB residency, graduate status, diversity/inclusion hires, and supporting applications. Maintain meticulous employee and hiring records.
- Stacking with Federal Programs – Most NB digital media/film credits can be combined with:
- Federal Film/Video Production Services Tax Credit (PSTC)
- Federal Interactive Digital Media Tax Credit (IDMTC) for software/games
- SR&ED for R&D-heavy projects
Structuring Projects for Maximum Credits
Case Study 1: Game Studio – "NB GameWorks" develops a new $1M game, with $600,000 in NB payroll and $100,000 in contractors. They:
- Register the project with Opportunities NB before work begins
- Track all NB-resident hires, contracts, and meet diversity bonus criteria
- Claim 40% base + 5% regional + 5% diversity = 50% on $600,000 ($300,000). Contractors may be eligible at a lower rate.
- File for the federal IDMTC (15% on net eligible labour after NB credit)
- Claim SR&ED for qualifying R&D activities
Case Study 2: International Film – "Global Cinema Ltd." incorporates a NB subsidiary, registers a $2M film, hires NB crew and talent, and claims 40% refundable credit on $1M of NB payroll ($400,000), plus the federal PSTC (21.5%).
Common Mistakes, Audit Risk & Best Practices
- Missing Pre-Approval: Failing to register your project before work starts can result in denied claims.
- Poor Documentation: Incomplete payroll, lack of proof of NB residency, or missing contracts are the top reason for denied or delayed credits.
- Over-claiming Non-Resident Labour: Only NB-resident salaries/contractors are fully eligible. Non-resident amounts may not qualify.
- Double-Claiming: You cannot claim the same dollar for both NB and federal credits. Always calculate net eligible expenditures for stacking.
- Audit Risk: Both Opportunities NB and CRA regularly audit credit claims, especially for larger projects or repeat claimants. Keep all records for at least 7 years.
Best Practice: Use payroll software that tracks NB residency, keep signed employee declarations, and maintain a project binder (physical or digital) with all contracts, timesheets, and supporting docs. For co-productions, clarify which company claims which credits.
Frequently Asked Questions: NB Digital Media & Film Credits
Can I stack NB digital media/film credits with federal programs?
Yes. Most NB credits can be stacked with federal CPTC, PSTC, IDMTC, and SR&ED, but you must not double-claim the same dollar. Calculate the NB credit first, then claim federal credits on the net eligible amount.
Do I need to be an NB company to claim these credits?
You must be incorporated and have a permanent establishment in New Brunswick. Foreign companies can qualify if they set up a NB subsidiary and hire NB-resident staff. International productions often use NB service companies to access credits.
What deadlines apply for NB digital media/film credits?
You must register and apply for eligibility before starting the project. Final claims are usually due within 18–24 months of project completion. Late applications are often denied.
What documentation is required for audit?
Maintain payroll records, T4s, contracts, residency documents, call sheets, project plans, and all eligibility certificates. For bonuses, keep proof of graduate status, regional location, or diversity hires.
Can part of a project (e.g., VFX/animation) qualify if the main shoot is elsewhere?
Yes—VFX, animation, and post-production work performed in NB for an external project can qualify for the NB digital media/film credit, provided all NB-resident payroll and project documentation is maintained. This is a popular strategy for NB studios.
Can I amend a previous year’s claim if I discover missed credits?
Yes, you can request a T2 adjustment (T2-ADJ or ReFILE) for up to 3 previous years for missed credits. Gather all supporting documentation and approvals before submitting.
Related NB & National Digital Media/Film Tax Credit Pages
- NB Business Tax Breaks Directory – Main NB credit index
- NB Innovation & R&D Credits – R&D, SR&ED, and tech incentives
- Canada-Wide Business Tax Credits – Film, SR&ED, and IDMTC
- Startup Tax Incentives – Angel, media, and innovation credits
- Quebec Multimedia, Game & Film Credits – For cross-border productions
- BC Film, Digital Media Credits
- Ontario Digital Media, Film & Content Credits
Official program info:
NB Interactive Digital Media Tax Credit | NB Film & TV Services