Interactive digital media developers that are currently located in North Carolina—as well as those contemplating doing business in North Carolina—should evaluate their business activities to take full advantage of the tax benefits of a new North Carolina tax credit for companies developing interactive digital media, including video game companies and developers of online virtual worlds and interactive websites that allow consumers to create and manipulate certain digital goods (i.e., avatars in role-playing scenarios). In particular, digital media developers should consider joint ventures with educational institutions that will allow them to maximize the benefits provided by the North Carolina credit. For more information on North Carolina’s new tax credit for digital media developers, please read our full client alert, “North Carolina Creates New Tax Incentive Opportunity for Digital Media Companies,” written by Rimon attorneys Donald M. Griswold, Michael A. Jacobs, John P. Feldman and Kelley C. Miller.