The dream of a tax credit for video game developers in the province has ended, but in its place the Ministry of Technology and Innovation is planning strategic and targeted investments into the sector.
The task given to Minister Nate Gublish in his 2022 mandate letter to develop a matching tax credit for the video game and digital media industry to other jurisdictions ended this week. That original mandate had asked the minister to develop a tax credit scheme that would have made the province more competitive with Ontario, Quebec, and B.C.
Press Secretary for the Ministry of Technology and Innovation, Jonathan Gauthier, said that the decision to axe the tax credit scheme came after an independent analysis of the Interactive Technologies Incentive Program.
“It was determined that a sector-specific boutique tax credit is not the best use of taxpayer dollars. Instead of sector-specific tax credits, Alberta’s government has chosen to support the digital media gaming industry through strategic funding partnerships and investments,” Gauthier said via email.
“Through Alberta Innovates, Alberta’s government has partnered with Shred Capital, a venture studio, to provide gaming companies with access to industry leaders, which will provide crucial support to small and medium-sized gaming companies. The Alberta Enterprise Corporation (AEC) is also a partner in funds with Flying Fish Ventures, which has invested in companies such as Artificial Agency, an AI-driven gaming company.”
He said that the Government of Alberta believed that investments and partnerships were the most effective and sustainable way to support the video game industry in the province.
Shred Capital is based in Vancouver, Flying Fish Ventures is based in Seattle, Washington, and Artificial Agency is based in Edmonton.
The Calgary Game Developers Association (CGDA) said that they understood the strategic shift that the government had taken towards supporting the industry, and that they were committed to continuing to work with the province to identify and develop partnerships, investment opportunities, and to advocate for high-impact tailored supports for local developers across the city and Alberta.
“Our goal is to nurture local talent and help Alberta develop a globally competitive gaming industry. We want to build stronger relationships with government and industry to ensure our collective focus is on fostering collaboration, economic growth and innovation, while ensuring that the local game development community remains a key part of Alberta’s future,” read a statement from the CGDA.
Brad Parry, CEO of Calgary Economic Development, said that the lack of tax credits was unlikely to affect further development of the video game industry in Alberta.
He indicated that the change in provincial policy was also not going to affect future Opportunity Calgary Investment Fund investments into the esports and video game development sectors.
