Michigan Video Game Tax Credits

GamesIndustry International has posted an excellent article on the tax credits available for video game developers. Michigan is among the dozens of states and Canadian provinces that provide tax credits for video game development. Under the 2013 Film and Digital Media Incentive, the State of Michigan offers a partial reimbursement of a video game developer’s eligible expenditures that are paid for producing a “digital media project” in Michigan. Producers of interactive games fall under this definition, which means that video game developers are eligible provided they spend at least $100,000 in direct production expenditures and expenditures on Michigan personnel.

If a game developer meets these requirements, it may be eligible for a partial reimbursement  namely, 32% of payroll expenditures and 27% of production expenditures. Thus, the theory goes, video game developers are incentivized to do business in Michigan and hire Michigan employees.

If you are a video game developer looking to take advantage of this tax credit, contact one of our expert video game lawyers today.

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