Panelists at the Okanagan TV/Film Industry Forum from left to right; Judy Lee, Ara Andorian, Darren Robson, Terri Hadwin, Jon Summerland, Erin Hazlehurst, Kelly Veltri, and James Alton. From March 16, 2024.

(JESSE TOMAS / iNFOnews.ca)

Cartoon creators in the Okanagan are about to take a big financial hit.

The BC government recently revoked a significant tax credit for animators in the province, and some in the film industry worry they could be next.

The government made a series of changes to provincial tax laws on Feb. 22. One of them excludes animators from a tax credit as of June 1. 

Sean Ridgway, the head of Kelowna’s Centre for Arts and Technology’s 3D animation program, said this change is going to have a major impact on an industry that has been growing in the Okanagan.

“It (the tax credit) has really driven the industry here and the ability to survive and hire local talent for a long time. I’ve always dreaded hearing news like this,” Ridgway said. “It confuses me. The industry has been stable and strong here for a good decade. Even in recent weeks I’ve seen growth with hiring here locally.”

The production services tax credit allowed for animation studios in the Okanagan to get their taxes reduced by up to 56 per cent of their labour costs.

READ MORE: Forum for Okanagan TV and film talked industry "boom"

“It’s been a big driver for the industry around here, especially when it comes to hiring local artists like our graduates,” Ridgway said.

The film industry in the Okanagan is still eligible for this tax credit, but some worry it’s next on the chopping block.

Okanagan film commissioner Jon Summerland said the entire film and TV industry ought to fight the decision to revoke this credit for animators.

“We have now been kneecapped,” Summerland said. “The taxpayers of the Okanagan need to do the best we can to make sure this industry doesn’t go away. If they get away with this then film’s next. Our wine industry is dying, our animation industry is dead, I know it’s a bummer but we need your help.”

Animation studios in the Okanagan have worked on popular shows like “Rick and Morty” and “Bob’s Burgers.”

Ridgway said he’s confused about the government’s reasoning for this decision.

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“I’m thinking because they said they’re trying to close a loophole or give a slap on the wrist for people who might have been abusing the tax credit. It’s a mystery to me. This is affecting jobs and a whole industry potentially,” Ridgway said. “I don’t know why they would go across the board and remove this. Is it people working from home? But at the same time those people who are working from home are local and they are serving the local industry.”

The MLAs for Kelowna-Mission, Kelowna-Lake Country, Westside-Kelowna, and Penticton have published a letter to the Minister of Tourism and Arts, Lana Popham, asking them to restore the credit for animators.

“These changes, however, have severe negative financial and recruiting effects on animation studios based in and operating out of regional and distant locations, such as Kelowna. This is a devastating cut for our region, with well over a hundred people who have lost their jobs. Additionally, we have been advised there was no consultation or warning,” the letter said.

“The Okanagan has seen significant growth in its animation industry over the past decade, with local companies contributing to job creation and economic growth. This decision unfairly penalizes animation companies based in the Okanagan region.”

Read the full letter here.

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