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Quebec reinstates video game tax breaks

A new budget means new tax breaks: The Quebec government has restored the 37.5 percent credit for game development, which was slashed last June.

Last June the Quebec government announced plans to slash the tax breaks which have lured so much game development to the Canadian province, but as of today, they're back. [PDF link]

The government has passed a new budget which includes the large tax breaks the region is known for.

In the wake of last year's news, many Quebec-based studio execs were quick to criticize any changes to the tax scheme, but as of today, they have no need for complaint.

The tax credit is designed to defray the costs of game development by providing relief on employee salaries -- 30 percent for commercial games developed in Quebec, with a potential 7.5 percent bonus if they're in French. Serious games for "vocational training" can get a 26.5 percent break on salaries. All projects must be directed through Investissement Québec for certification prior to receiving any tax aid.

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