In another under-the-radar issue, the government on Friday came through with a 35 per cent Digital Media Refundable Tax Credit, similar to a tax credit program already offered to the Nova Scotia film industry.

While the details of the credit for digital productions is still being worked out, it is expected it will offer the same incentives available to qualified film productions and co-productions produced and / or shot in Nova Scotia.

According to a government website, the film credit is calculated as the lesser of either 35 per cent of eligible Nova Scotia labour or 17.5 per cent of the total costs for productions in metro, or the lesser of either 40 per cent of eligible Nova Scotia labour or 20 per cent of total production costs for productions in other parts of the province.

Melanie Williams, who speaks on behalf of Lunenburg video-game maker, HB Studios, says her company has been pushing the government for the digital production tax credit for some time now.

And while the seven-year-old company is pleased that Nova Scotia has finally come up with something to help out with production costs, she says the company is getting ready to create about 20 new jobs over the next six to nine months as Phase 1 of an expansion that will allow HB Studios to take on new projects.

The company is currently based in Lunenburg, but it is also investigating what other provinces have to offer; more specifically, she says Prince Edward Island is offering an attractive incentive package to locate on the Island.

HB Studios just recently came out of an exclusive relationship with video game industry giant EA Sports, says Williams. Although HB is still working with EA, she says the company is eager to explore other gaming options, which may lead to bigger and better things in the future.

HB Studios has doubled in size over the last couple of years to a staff of 60, which is currently working on six projects, including four titles for EA and the Trailer Park Boys game for PlayStation3 and Xbox 360.

The company reports that global sales have reached over three million units and over the last seven years and revenues have surpassed $17 million, generating at almost $4.5 million in 2006 alone.

This all comes down to creating a positive business climate in Nova Scotia, not just for high-tech success stories like HB Studios, but for all business.

Although payroll incentives and other tax credits go a long way, many business advocates will say that cutting back on government spending while cutting taxes is a more equitable, broad-based way to assist business and encourage those who are contemplating starting a business.

See the full story at The ChronicleHerald.ca