Category Archives: Video Games

In today’s Boston Globe, its editors endorse a plan to offer tax incentives to video game companies. Recognizing that this sector offers significant growth potential and jobs, the Globe editorial characterizes incentives as a long-term investment:

Incentives for video game developers … could serve as an invaluable long-term incubator of talent, helping to further build up the local industry. While Greater Boston’s strengths — a wealth of top research institutions and a concentration of tech-savvy young people — are a good match for the industry’s needs, other jurisdictions are also making a strong bid to attract game developers.

If reader comments to the editorial are any measure of voter enthusiasm for the measure, the legislature will have an uphill battle trying to implement an incentive program. Nevertheless, the Globe’s support is a major development in the effort to create a tax-friendly environment for this burgeoning sector.

There are already at least 17 other states that offer tax incentives to video game companies. The tax incentive game is sometimes criticized as a race to the bottom, with states competing with one another at the expense of taxpayers. However, the judicious use of tax credits could yield dividends to the Commonwealth because the Bay State already has much to offer interactive media companies and a thoughtful incentive plan would further buttress our standing as a top destination for video game entrepreneurs.

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Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience at large law firms, working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and labor and employment. We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.

State governments across the country are competing to attract video game developers to stimulate local economies.  As part of this effort, at least 20 states have enacted legislation to provide tax incentives to interactive media companies.  Most of these incentive packages have been implemented in the past five years.  Typically, the tax incentives take the form of credits, grants, and exemptions.  The incentives are often administered by a state’s film office.

Beck Reed Riden LLP is pleased to provide Stephen Riden’s comprehensive list of the states that are currently offering tax incentives to video game companies, along with a short description of each state’s incentive plan.

The chart is available for download here. (June 2011 update.)

We are following tax incentive legislation for game developers pending in several other states.  Check back for periodic updates or email us at info@beckreed.com, and we will automatically send the latest updates as they become available.  We welcome your feedback:  Please drop us a line if you have more up-to-date information.

Please note that this summary is not legal advice or tax advice of any nature, nor is it a substitute for proper legal research and advice. It is provided for informational purposes only.

About Us

Beck Reed Riden LLP is Boston’s innovative litigation boutique. Our lawyers have years of experience at large law firms, working with clients ranging from Fortune 500 companies to start-ups and individuals. We focus on business litigation and labor and employment. We are experienced litigators and counselors, helping our clients as business partners to resolve issues and develop strategies that best meet our clients’ legal and business needs – before, during, and after litigation. We’re ready to roll up our sleeves and help you. Read more about us, the types of matters we handle, and what we can do for you here.