Alberta scraps tax credit plans for Canadian game studios

The Alberta government’s decision not to proceed with a new interactive digital media tax credit leaves the province without the type of production incentive available to game developers in several competing Canadian jurisdictions. The proposed measure had been intended to improve Alberta’s competitiveness with provinces such as British Columbia, Ontario and Quebec, where tax credits can reduce the labour costs associated with game production. For Alberta studios, the decision affects the financial environment for hiring, expansion and attracting outside investment. Game development is labour-intensive, making salary-based incentives particularly relevant when companies compare locations for new teams or projects. The decision also follows the cancellation of Alberta’s previous Interactive Digital Media Tax Credit in 2019, leaving developers to rely on other provincial programs and targeted investments rather than a dedicated game-production tax credit.