Quebec multimedia tax credit for studios and producers

Quebec has become a major hub for video games and interactive content. The tax credit for the production of multimedia titles supports this industry by reducing eligible labour costs incurred in Quebec.

Often referred to in French as the CTMM, this credit is intended for corporations that produce interactive titles such as video games, certain educational applications and other digital multimedia content that meets the program’s criteria.

For a taxation year beginning in 2026, total assistance can reach 37.5% of eligible labour expenditures. This maximum consists of a 32.5% refundable portion and a 5% non-refundable portion.

The multimedia tax credit and other cultural tax credits

Quebec offers several tax measures for cultural and digital industries, but they do not cover the same productions.

The multimedia title credit applies to digital content run by software that allows the user to participate in how the content unfolds. Credits for film or television productions, visual effects, animation and dubbing use different definitions and are administered under their own rules.

Video editing or a digital animated film is therefore not automatically an eligible multimedia title. Interactivity is central, along with conditions related to the medium, content and producer.

Investissement Québec reviews the sector-specific parameters and issues certificates. Revenu Québec remains responsible for the tax parameters and the amount claimed on the corporation’s income tax return.

What is an eligible multimedia title?

According to Investissement Québec’s detailed program sheet, a title must generally:

• be produced by the corporation claiming the credit;
• be published on an electronic medium;
• be run by software that allows interactivity;
• contain an appreciable volume of at least three of the following elements: text, sound, still images and animated images.

The user must participate in all or substantially all of the content’s progression. Feedback, the control exercised by the user and the title’s ability to adapt to the user’s actions are among the factors used to assess interactivity.

Video images cannot, on their own, cause sound and animated images to count simultaneously as two distinct components. Special rules also apply to related titles, parts of titles and commissioned productions.

A commercial video game, interactive application or vocational training simulator may qualify based on its characteristics. A linear video, brochure website or content merely distributed on a digital medium does not qualify simply because it is digital.

Who can claim the credit?

A corporation must have an establishment in Quebec where it carries on an eligible business and incur production expenditures for eligible titles.

Tax-exempt corporations, Crown corporations and their wholly controlled subsidiaries are excluded. The general stream also excludes a corporation already claiming under the specialized corporation stream for the same year.

The program has two paths:

Stream	General profile	Main certificates
General stream	Corporation producing one or more eligible titles without necessarily meeting the specialized stream’s activity test	Initial certificate for each title and an annual production-work certificate
Specialized corporations	Corporation for which at least 75% of eligible activities carried out in Quebec correspond to activities covered by the program	Annual specialized-corporation certificate and annual production-work certificate for all eligible titles

Meeting the 75% threshold does not relieve a specialized corporation from documenting its titles, work and employees. Certificates must be obtained for every taxation year in which the credit is claimed.

Quebec multimedia tax credit rates for 2026

For a corporation whose taxation year begins in 2026, the rates depend on the category of title certified by Investissement Québec.

Title category	Refundable portion	Non-refundable portion	Total assistance
Commercial title available in French that is not a vocational training title	32.5%	5%	37.5%
Commercial title not available in French that is not a vocational training title	25%	5%	30%
Other title, including a vocational training title	21.25%	5%	26.25%

These rates are tied to the calendar year in which the taxation year begins. The refundable portion declines gradually through 2028 while the non-refundable portion increases. Total assistance then remains 37.5%, 30% or 26.25%, depending on the category.

The non-refundable portion reduces income tax payable. Subject to the applicable conditions, an unused amount may be carried back three taxation years or forward twenty taxation years when the corporation is entitled to the refundable credit in the year of the carryover.

The Quebec Ministry of Finance’s official tax expenditure page shows how both portions change each year.

Eligible labour expenditures

The credit is calculated on labour expenditures attributable to eligible production work. These expenditures may include:

• salaries and wages paid to eligible employees;
• eligible amounts paid to a non-arm’s-length subcontractor for work performed by its employees at an establishment in Quebec;
• 50% of amounts paid to an arm’s-length subcontractor for eligible production work carried out in Quebec.

Production work generally begins with the title’s design and covers the stages required to produce it. Depending on the facts, this may include design, programming, integration of visual and audio elements, testing directly related to production and certain expressly recognized post-commercialization analyses.

For taxation years beginning after December 31, 2024, the former annual $100,000 cap per employee has been eliminated. However, an annual exclusion threshold corresponding to the applicable basic personal amount must be subtracted from each employee’s eligible wages, with the adjustments required by the tax rules.

Marketing, distribution, general administration and customer service do not become eligible simply because they relate to an eligible title. Mixed roles must be allocated according to the work actually performed.

How to obtain Investissement Québec certificates

The process depends on the stream.

Under the general stream, the corporation must obtain an initial certificate confirming the title’s eligibility. That certificate does not need to be renewed. The corporation must then obtain a production-work certificate for every taxation year in which it claims the credit.

Under the specialized stream, the corporation applies annually for a specialized-corporation certificate and a certificate covering eligible production work for its titles.

The certificate application must normally be submitted to Investissement Québec before the end of the fifteenth month following the fiscal year-end. An application filed later but before the end of the eighteenth month may be accepted at Investissement Québec’s discretion when the delay is reasonably justified. It will be refused after 18 months.

The corporation then claims the credit from Revenu Québec using the applicable form and certificates. Investissement Québec’s multimedia title production page provides the current program sheets and forms.

Clear records of tasks, hours, titles and subcontractors make the application easier to prepare. To review your structure before the next filing, speak with an Avinova specialist.

Interaction with SR&ED, CDAE-IA and other assistance

A corporation may carry out activities that appear relevant to several tax credits, but it cannot assume the same expenditure will generate every incentive without adjustment.

The multimedia credit rules reduce eligible labour expenditures by government and non-government assistance and other benefits attributable to those expenditures. Anti-stacking rules also apply when an expenditure may generate more than one tax credit.

SR&ED addresses work carried out to achieve a scientific or technological advancement through a systematic investigation. The multimedia credit instead covers eligible production work for a certified title. One production may contain distinct bodies of work, but the allocation must be supported by project records.

Our SR&ED and CDAE-IA comparison helps explain why the eligibility criteria and calculation bases are not interchangeable.

Preparing the multimedia credit during production

Decisions made during production directly affect the quality of the file: defining the titles, describing duties, allocating employees, tracking subcontractors and planning French-language availability.

It is better to structure these records during development than to reconstruct them after year-end. The correct title category, stream and expenditure allocation must follow the facts and certificates, not merely the name given to the product.

To assess your titles and prepare the certificates, book a consultation with the Avinova team and explore our grants and tax credits directory.

FAQ

What is the maximum Quebec multimedia tax credit rate in 2026?

For a taxation year beginning in 2026, a commercial title available in French that is not a vocational training title may generate total assistance of 37.5%. This consists of a 32.5% refundable portion and a 5% non-refundable portion applied to eligible labour expenditures after the required adjustments.

Does the credit apply to animation studios?

It may apply to an interactive animation title that meets all the criteria, but not automatically to a linear audiovisual production. The title must be run by software that allows the user to participate in all or substantially all of the content’s progression and must contain the required volume of multimedia components. Film and television productions are covered by different measures.

What is the difference between the general and specialized streams?

The general stream certifies titles individually through an initial certificate, followed by an annual production-work certificate. The specialized stream is intended for a corporation for which at least 75% of eligible activities in Quebec correspond to activities covered by the program. It must obtain an annual specialized-corporation certificate and a production-work certificate covering its eligible titles.

Can the multimedia credit be combined with SR&ED?

The same corporation may potentially claim different measures when distinct bodies of work meet their respective criteria. However, assistance must be reported, expenditures must be allocated correctly and anti-stacking rules must be followed. A project-by-project and expenditure-by-expenditure review is recommended before filing.