Visual Effects, Animation Studios Unite to Convince Quebec for Better Tax Deal

Visual Effects, Animation Studios Unite to Convince Quebec for Better Tax Deal
The Quebec Fleur-de-lis provincial flag flies on top of the National Assembly’s main tower in Quebec City on Jan. 18, 2023. The Canadian Press/Jacques Boissinot
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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 percent 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.