Montreal VFX And Animation Workers Facing Uncertainty Amid Tax Credit Cuts

Quebec's New Tax Measures Impact The Competitiveness And Stability Of The Film Production Industry

 

The visual effects (VFX) and animation industry in Montreal, once a thriving hub of creativity and innovation, is now grappling with significant challenges. Recent amendments to Quebec's tax credit for film production services have led to widespread concern, layoffs, and a sense of uncertainty among industry professionals. This article delves into the impact of these tax credit cuts on Montreal's VFX and animation workers, highlighting their struggles and the broader implications for the industry.

The Impact of Tax Credit Cuts

The Quebec government's decision to amend the tax credit for film production services has sent shockwaves through the VFX and animation industry. The new measures, which came into effect earlier this year, include an increase in the base rate of the tax credit from 20% to 25% and a cap on its application to 65% of a contract's value. This cap is a significant change from the previous system, where there was no cap, allowing studios to benefit more extensively from the tax credits.

The rationale behind these amendments, as stated by Quebec Finance Minister Eric Girard, is that the financial support extended to the VFX and animation industry since 1998 had become "disproportionate." The government aims to redirect support towards Quebec cinema, believing this to be a more balanced approach. However, industry professionals argue that these changes have made Quebec less competitive, leading to a slowdown in film projects and job losses.

Industry Response and Sit-in Protest

In response to the tax credit cuts, VFX and animation workers have organized protests and sit-ins, hoping to persuade the government to postpone the amendments. One such protest took place at Place de la Dauversière across Montreal's city hall, where a group of industry professionals, including Thai Son Doan, gathered to voice their concerns.

Thai Son Doan, a 50-year-old compositing supervisor with over 20 years of experience, donned a shirt emblazoned with "Quebec has lost its effect(s)" and joined the sit-in. Doan, who recently lost his job, expressed the collective anxiety and frustration of his peers. "To see us grouped together undergoing this difficult time is at least less lonely, but it's a reality we're all facing," he said.

The Human Cost of Industry Changes

The human cost of these industry changes is profound. At its peak in 2022, Montreal's VFX and animation sector employed around 8,000 people. However, projections suggest that this number will plummet to 1,800 by next year. The "Quebec has lost its effect(s)" group has highlighted that four Quebec studios will have to close by August, and four international studios based in the province are considering relocation.

For professionals like Doan, the situation is particularly dire. Having weathered previous industry slowdowns after the 9/11 attacks and the 2008 financial crisis, Doan is now facing unemployment at a time when he has more responsibilities, including a mortgage and two children. Relocation, which was an option in his younger years, is now less feasible.

Andrée Ingenito and her partner, both VFX professionals, share similar concerns. With a new baby and a recently purchased house, they are acutely aware of the precariousness of their situation. Ingenito voiced the uncertainty they feel, contemplating the need to potentially retrain and start their careers anew if layoffs were to occur.

The Future of Montreal's VFX and Animation Industry

The future of Montreal's VFX and animation industry remains uncertain. Professionals like Matthieu Chatelier, a supervisor at Montreal-based Folks studio and the main organizer of the sit-in, emphasize the specialized nature of their work. "What we do is so specialized, it's not something we can transfer to another industry," he explained.

As the industry grapples with these changes, many are looking for ways to adapt. Doan, for instance, is focusing on keeping his skills up to date and exploring opportunities in the video game industry, despite its own challenges. The sentiment across the industry is one of resilience, but also of a cautious hope that the government might reconsider or at least mitigate the impact of the tax credit cuts.

Conclusion

The tax credit cuts in Quebec have cast a shadow over Montreal's once-thriving VFX and animation industry. As professionals face job losses and uncertainty, their calls for government intervention and support grow louder. The industry's future hinges on a delicate balance between financial sustainability and competitive incentives, and only time will tell how these changes will reshape the landscape of film production in Quebec.

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Source: CBC

Photo Credit: Paula Dayan Perez/CBC

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