Visual effects, animation studios unite in push for better tax deal in Quebec – Montreal [Video]

Visual effects and animation companies are uniting to strike a better deal with the Quebec government after it implemented tax changes that some firms say will cost them nearly two-thirds of their revenues next year.

Last spring, the provincial government added in the budget a 65 per cent cap on tax credits that international film studios can claim when they subcontract work to VFX and animation companies operating in Quebec. The original subsidy, which had no cap, was introduced in 1998, and the government says it has become too expensive.

The tax change entered into effect May 31, and as a result VFX and animation studios say the big film companies are less incentivized to put Quebec talent to work.

Véronique Tassart, director of mergers and acquisitions at Cinesite, said her company and other VFX and animation studios are making a joint set of proposals to the Quebec government in …