MONTREAL, QC – In March, the Government of Quebec announced that it would be making 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 per cent but at the same time, a 65 per cent cap was introduced, which is a sudden and significant cut.
This cap 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. The film industry has been struggling since last year’s actors’ and writers’ strikes, so that situation coupled with Quebec’s tax credit reduction is the equivalent of kicking an industry when it’s down.
As the union representing many of these workers, the IATSE is critical of the lack of consultation with industry stakeholders, as well as the speed with which the new regime was rolled out. “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.”
The IATSE has been meeting with animation and VFX workers to discuss impacts and potential supports but urges the Government of Quebec, in the strongest terms, to reverse the cap before the damage to the Province becomes permanent.
For more information or to arrange an interview, please contact:
Isabelle Lecompte, IATSE International Representative