Montreal VFX and Animation Workers Face Uncertainty Amid Tax Credit Cuts The vibrant VFX and animation industry in Montreal, Canada, is facing uncertainty after the provincial government announced cuts to its popular tax credit program. The move has left workers in the sector worried about the future of their livelihoods. The tax credit, known as the Quebec Film and Television Production Tax Credit (QFTPTC), offers a 37.5% refundable tax credit to productions that spend at least 25% of their budget in the province. It has been a major driver of economic activity and job creation in Montreal, which has become a global hub for VFX and animation. However, the government has recently been facing pressure to reduce its budget deficit. In its 2023 budget, it announced cuts to the QFTPTC, reducing the refund rate to 34% and the minimum spending requirement to 20%. The cuts have sent shockwaves through the industry. VFX and animation studios rely heavily on the tax credit to make their projects financially viable. With the reduction in support, they may have to reduce production or even shut down operations altogether. “The tax credit cuts are devastating for our industry,” said Julie Roy, president of the Association des créateurs et des industries de l’animation du Québec (ACIAQ). “Many studios are already struggling to keep up with competition from other jurisdictions, and these cuts will make it even harder.” VFX and animation workers are also worried about the potential impact on their careers. The sector employs thousands of highly skilled professionals, including artists, animators, and technicians. With fewer productions being made in Montreal, they may have to look for work elsewhere. “I’ve been working in VFX for over 20 years,” said Marc Gaudreault, a visual effects supervisor. “I’ve seen the industry boom and bust, but these cuts are unprecedented. I’m not sure what the future holds for us.” The government has defended the cuts, arguing that they are necessary to balance the budget. However, the industry is urging the government to reconsider. They point to the economic benefits of the VFX and animation sector, which include job creation, investment, and tourism. “The tax credit is not just a subsidy,” said Roy. “It’s an investment in our future. It creates jobs, generates revenue, and promotes Quebec’s reputation as a leader in the creative industries.” The uncertainty surrounding the tax credit cuts is having a chilling effect on the industry. Studios are hesitant to start new projects, and many workers are considering leaving Montreal for greener pastures. The future of the VFX and animation industry in Montreal hangs in the balance. The government’s decision to cut the tax credit has created a climate of fear and uncertainty. Unless the government changes course, the sector could face a significant decline.Visual Effects and Animation Industry in Montreal Faces Layoffs and ClosuresVisual Effects and Animation Industry in Montreal Faces Layoffs and Closures On the first day of unemployment, Thai Son Doan joined a crowd of visual effects (VFX) and animation workers at Place de la Dauversière for a sit-in protest. The group is demanding the postponement of recent amendments to Quebec’s tax credit for film production services, which they say has led to a stall in film projects and mass layoffs. Doan, a 50-year-old compositing supervisor with over 20 years of experience, was not surprised by his own unemployment. “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. In March, the Quebec government announced an increase in the base rate of the tax credit from 20% to 25%, but capped its application to 65% of a contract’s value. Previously, there was no cap. Industry leaders raised concerns about the impact of the new measures, but the government proceeded with the amendment. Finance Minister Eric Girard said the support extended to the VFX and animation industry since 1998 had become “disproportionate,” and that the government was choosing to increase support for Quebec cinema instead. Four Quebec studios will close by August, and four international studios based in the province are looking to relocate, according to the “Quebec has lost its effect(s)” group. At its peak in 2022, the industry employed 8,000 people in Montreal. The group estimates that number will fall to 1,800 next year. After over 20 years in the industry, Doan is no stranger to slowdowns. But with two kids and a mortgage, the stakes feel higher this time. He and other workers are now facing the daunting prospect of retraining or relocating. “What we do is so specialized, it’s not something we can transfer to another industry,” said Matthieu Chatelier, a supervisor at the Montreal-based Folks studio. “It’s like asking a plumber to build walls.” Despite the challenges, Doan remains optimistic. He plans to update his skills and portfolio, exploring options in the video game industry while keeping his expectations low. The industry’s future remains uncertain, but the workers are determined to fight for their livelihoods and the preservation of the vibrant VFX and animation sector in Montreal.