Regional Animation Tax Credit

Okanagan Film Commission Logo with a film reel in blue and orange.

If you haven’t yet heard, our local animation industry has taken a hit, and our regional tax credit has been pulled. This affects us all, even if you’re not in the animation world. Below, we are posting a template letter we have been sending to government officials. Please feel free to use this as a guide and reach out on your own. If we have band together and show those in charge the impact this will cause, they might see how detrimental this will be to our Community and reconsider. Thank you.

I am writing to ask for an opportunity to discuss the recent changes to provincial tax credits for animation productions, effective June 1, 2024. Specifically, the decision to exclude animation productions from eligibility for the regional and distant location tax credits is troubling me.

While I fully understand the government’s intention to address misuse of the credits, this decision unfairly penalizes animation companies based in the Okanagan region. The Okanagan has experienced significant growth in its animation industry over the past decade, with local companies playing a crucial role in job creation and economic development in our community. However, the exclusion of animation productions from regional tax credits poses a serious threat to the viability of these businesses and undermines the progress we have made.

As a respected leader within the interior of British Columbia, your influential support is essential in promoting the interests of animation companies based in the interior. I urge you to actively pursue modifications to the proposed tax credit changes that would still provide regional tax credits for animation companies with physical locations, based in our region. Such measures are crucial in protecting our local businesses’ competitiveness and sustained prosperity.
I understand that the recent amendment aims to prevent the misuse of credits by animation companies to subsidize remote workers, which is not the intended use of the credit. However, there are more effective solutions than excluding animation productions altogether. It is essential to find a balance that addresses misuse while still supporting the growth and sustainability of our locally based animation industry.

Thank you for your attention to this matter. I greatly appreciate your advocacy for the communities of the interior of British Columbia and your commitment to ensuring fairness and equity in our province’s tax credit system.

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