In March, the Government of Quebec announced significant changes to its animation and visual effects tax credit. Effective May 31, the base rate of the tax credit was increased from 20 to 25%, but at the same time, a 65% cap was introduced, which IATSE International points out is a sudden and significant cut.
This cap, the labor org says, has resulted in devastating job losses for what was a thriving industry in the Province. On August 28, DNEG, a seven-time Academy Award winning visual effects and animation studio, announced it would be making significant staffing changes in the next few weeks (hinted at earlier this year). The cuts to Quebec’s tax credit pile on to the ongoing effects of last year’s actors’ and writers’ strikes. IATSE represents many of the workers in Canada’s animation and VFX industry.
“It is shocking to me that the Quebec Government, which has always been a huge supporter of the arts and arts workers, would not consult with the industry prior to making such a significant change,” said IATSE Director of Canadian Affairs John Lewis. “The consequences have already been devastating for the Province. We’re seeing a talent and economic bleed. Highly skilled workers are making plans to leave and studios are closing their doors and relocating.”
IATSE says the union has been meeting with animation and VFX workers to discuss impacts and potential supports but urges the Government of Quebec to reverse the cap “before the damage to the Province becomes permanent.”
[Source: IATSE]
