Quebec VFX/animation studios seek better tax deal amid 65% cap on tax credits, forecasting revenue losses and potential industry contraction.

Quebec's visual effects and animation studios are collaborating to request a more favorable tax deal from the provincial government after a new 65% cap on tax credits for international film studios. This cap, introduced in May 2023, is expected to lead to significant revenue losses—25% in 2024 and 63% by 2025—causing job cuts and studio closures. The industry, which generated $1.3 billion in 2022, anticipates a drop to $393 million by 2025.

September 26, 2024
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