CALGARY—Tucked inside an Alberta government bill to diversify the province’s economy is an Easter egg for digital media companies — one promising to slash studios’ labour costs by a quarter.

When it launches on Sept. 4, the Interactive Digital Media Tax Credit — part of the Alberta government’s Growth and Diversification Act — will refund digital media companies 25 per cent of whatever they pay to Alberta-based employees in salary, wages, and bonuses.

The act will also cover five per cent of payroll costs for under-represented workers, including women, Indigenous people, and people with disabilities.

“We know that Alberta’s interactive digital media (IDM) industry offers tremendous growth potential — growing from just a few studios in the 1990s to approximately 55 studios today — and we want to see this trend continue,” Economic Development Minister Deron Bilous said in a statement.

Several major IDM companies have a presence in Alberta, including BioWare. The company started in Edmonton, but was bought out by Los Angeles-based Electronic Arts, a video game giant, in 2007.

Serious Labs, an Edmonton-based software company, is pleased at the offer, but said it’ll need to look at the fine print. Details on who can apply haven’t been announced by the government yet.

“On the surface, the salary number sounds pretty generous, when they say salaries, wages, and bonuses,” said Darrell Skoreyko, the company’s director of financing.

Serious Labs has nearly doubled its staff in the last year, he said, but he’s unsure from the government’s announcement who exactly would be covered.

“Is it all the staff? Or is it only certain qualified staff?” he asked.

Bilous announced plans for the tax credit in March, saying digital media entrepreneurs create “hundreds of good jobs for Albertans” while developing software for use around the world.

According to the ministry, interactive digital media studios in Alberta employ around 540 full-time staff, and generate $50 million to $80 million annually to the province’s GDP.

Alberta now joins Ontario, British Columbia, and Quebec in providing incentives to companies involved in interactive digital media, animation, and film.

However, Ontario still offers bigger breaks through the Ontario Interactive Digital Media Tax Credit: 40 per cent for marketing and distribution expenses, 35 per cent for labour on projects developed under a “fee-for-service” arrangement, and a 35 per cent for digital game companies, according to a government website.

Despite the offers, Skoreyko said better rates in other provinces wouldn’t necessarily prompt a company to move out of Alberta.

“I don’t think it would be the only factor in making a decision, but it would certainly influence a company,” Skoreyko said.

Quebec also offers a “taux de credit” for 37.5 per cent of eligible labour expenses for the “production of multimedia titles in Quebec,” according to Investissement Quebec’s website, while B.C.’s Interactive Digital Media Tax Credit gives 17.5 per cent of eligible salaries and wages back.

As of 2017, B.C. also allowed businesses to claim the credit even if they don’t primarily produce interactive digital media, so long as they incurred more than $2 million in B.C. labour costs.

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The provincial government hasn’t been known for supporting Alberta’s tech industry, Skoreyko said. And while details of the new tax credit are still unclear, he hopes it’ll help businesses like his grow.

“At the very least, it will make us more competitive in Alberta,” Skoreyko said.

Brennan Doherty is a work and wealth reporter with StarMetro Calgary. Follow him on Twitter @Bren_Doherty

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