Quebec luring video game jobs from U.S.

The key point in this article is the 37.5% of payroll costs –  refundable tax credit for video game companies.   It certainly has been effective with 86 companies and 8,400 jobs created but it cost the Quebec government $100 million last year alone.

Remember, this is a refundable tax credit meaning the company gets the money if it expends the payroll – it has nothing to do with paying taxes.

I assume that the Quebec government has done some kind of multiplier analysis that they use to justify this incentive level.  Or maybe they are just trying to build an industry – without worrying about the taxes it will generate – in the hopes that in the long term it will stick in the province (even if the incentives are lowered/eliminated).

I’m not sure but it makes the competitive landscape for this sector very complicated.  NS, PEI, ONT and BC have all put similar incentive programs in place to compete for such a glamorous industry.

Regardless, there are 8,400 game developers roaming around downtown Montreal.  That is impressive.