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[MauroNL]

http://affaires.lapresse.ca/economi...ntion-record-de-120-millions-pour-ubisoft.php
This article was originally in French, so the below is Google Translated to English so it might not look cohesive all the time.

The governments of Canada, Nova Scotia, Ontario and, most importantly, Quebec provided a total of $ 120.5 million in grants to Ubisoft during its fiscal year 2016-2017, ended March 31 latest.

This is revealed in the annual report of the French company, unveiled at the end of July. Canadian government assistance reached $ 110.2 million in 2015-2016 and $ 90.4 million in 2014-15. With one exception, they have increased each year since the data became available.

Of all the multinational video game companies in Canada, Ubisoft is the only one to make public the money obtained from governments. It must be said that these are of vital importance in the group's finances.

For the last 12 fiscal years, Ubisoft has received more grants from Canadian governments ($ 629.8 million) than it has earned before tax (613.2 millions of euros).

I thought this was interesting. Is it normal for publishers/developers to receive such large grants? Are there numbers for different other publishers and countries?

 

[LegitMcfalls]

I think its more common in Canadian industies. Ubi helps create jobs and does alot for local colleges and universities same for EA, Rockstar and probably Bethesda too.

 

[Kamisori]

For the last 12 fiscal years, Ubisoft has received more grants from Canadian governments ($ 629.8 million) than it has earned before tax (613.2 millions of euros).

What about the taxes received indirectly from the employees by living there (and the dynamic of the cities where they are located)?

 

[AAK]

A good chunk of that money ended in the hands of the Canadian work force I presume.

 

[Nirolak]

I thought this was interesting. Is it normal for publishers/developers to receive such large grants? Are there numbers for different other publishers and countries?

Canada does this to scale more than most places, but there are a number of areas that offer large tax incentives.

For example, Georgia (the US state):

This week, Georgia Gov. Nathan Deal (R) signed a bill into law that will provide $25 million in tax breaks to game developers in an effort to encourage economic development in the southern state. The law, previously known as House Bill 958, passed the Georgia state House and Senate earlier this year. It also includes a number of other tax-related legislation including sales-tax holidays and exemptions from sales taxes for qualifying food banks. Georgia-based developers that may benefit from the law include Cartoon Network Games, Red Orchestra developer Tripwire Interactive, and Smite developer Hi-Rez Studios.

This is the second time that Deal has signed a bill into law that benefits the state’s game-development industry. In 2012, Georgia passed House Bill 1027 that let studios keep up to 30 percent of their state taxes due in credits.

Source: https://venturebeat.com/2014/04/15/...als-out-25m-in-tax-breaks-to-game-developers/

 

[Chuck the Bean]

What about the taxes received indirectly from the employees by living there (and the dynamic of the cities where they are located)?

It is spined like an investment but how can we calculate if the Gov get full return on that "investment"? Of course it does create jobs but that's a lot of money...

 

[Foreign Jackass]

where's my mario+rabbids

 

[Daedardus]

But are these tax breaks or actually cash grants?

 

[Oneself]

It's more like a publicity investment than anything else.

 

[HStallion]

So Canada is at fault for Mass Effect Andromeda!

 

[Kamisori]

It is spined like an investment but how can we calculate if the Gov get full return on that "investment"? Of course it does create jobs but that's a lot of money...

That's why i said that, Ubi maybe pay less taxes than the governement gives, but the hole may be filled thanks to employees living in the country and boosting the areas where they are implemented (and that's a lot of people)

 

[AEdouard]

It's a lot of money, but it's pretty much money the government wouldn't have anyway if Ubi wasn't there. And Ubi expanded their operations in Montreal thanks in a large part to these credits. They have around 4,000 (?) employees right now in the city (and they basically opened shop because of that money in the late 90s). I think overall it's a good investment.

Montreal basically started from nothing in the 90s videogame wise and is now the 4th or 5th largest videogame city in the world, with tons of studios and good, creative jobs.

 

[kevin1025]

So Canada is at fault for Mass Effect Andromeda!

We make Mass Effect, we take Mass Effect away.

 

[AEdouard]

But are these tax breaks or actually cash grants?

It's a 'refundable tax credit'. Ubi gets/pays the difference between the taxes they owe and the credit. Overall it pretty much cancels out.

Overall it's a net positve for the city/country in terms of jobs/economic activity/revenue, but you always have to wonder what the right % should be. Incentive/tax competition between countries is a terrible thing. But you do what you gotta do. US states do the same all the time in other sectors.