26/05/2023
ALBERTA NDP WILL CREATE DIGITAL MEDIA JOBS, FILL EMPTY OFFICE SPACE IN DOWNTOWN EDMONTON
EDMONTON – The Alberta NDP will build a more resilient economy, create jobs in the digital media sector, and fill empty office space in downtown Edmonton through the reinstatement of the Interactive Digital Media Tax Credit (IDMTC).
In the UCP’s first budget, they claimed economic diversification is “a luxury” and cut several tax credits that supported startups, particularly in the tech sector. The IDMTC attracted companies to Alberta and supported the growth of others. However, its cancellation led to companies hiring out of province.
“With the introduction of the tax credit, we saw companies move to Alberta, while those already here expanded their workforce. Sadly, against the best advice of business leaders and economists, this tax credit was one of the first of many good economic programs the UCP government cancelled after the election,” said Alberta NDP candidate for Edmonton-South West Nathan Ip.
“Four years later, Alberta has fallen behind.”
The IDMTC offered a 25 per cent credit on wages, salaries and bonuses paid to employees working to create interactive digital products such as video games, training simulation, and film special effects.
An additional five per cent top-up was offered to companies hiring from under-represented demographics, including women, Indigenous people and people with disabilities.
Despite promising a digital media tax credit during her UCP leadership campaign, Danielle Smith failed to implement one in Budget 2023. Digital Aberta, the association for the digital media industry, warned the snub would lead to job losses.
According to a report issued last year from the Entertainment Software Association of Canada (ESAC), Alberta is now missing out on investment and losing ground to other jurisdictions. Ontario, Quebec, and British Columbia all offer competitive tax credits to foster video game development.
“I've been building computer games in this province for almost 25 years now. When the NDP unveiled the digital media tax credit in 2018, for the first time, I was excited to be doing so on a level playing field. That was a critical part of us having the opportunity to gather investment for the studio,” said Aaryn Flynn, CEO of Inflexion Games in Edmonton.
“I'm excited for the opportunity for the digital media tax credit to come back under an NDP government, and we're excited to continue to grow here in Alberta.”
The downtown Edmonton office vacancy rates are now the third highest in the country at 23.5 per cent, according to CBRE.
According to Statistics Canada, the number of head offices located in Edmonton has also decreased under the UCP.
“An Alberta NDP government will level the playing field and we will compete. We will restore the Interactive Digital Media Tax Credit and we will draw investment here,” said Alberta NDP candidate for Edmonton-City Centre David Shepherd.
“We’ll create more, good-paying jobs right here in Edmonton and fill empty office space downtown. And we will build a better future for Alberta.”
The Alberta NDP has also committed to eliminating the small business tax for the majority of small businesses and maintaining the lowest corporate tax rate in the country.
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