The Okanagan Animation Sector is under threat from a recent change that would exclude the industry from a vital regional and distant location tax credit.
The Okanagan Animation Sector is under threat from a recent change that would exclude the industry from a vital regional and distant location tax credit. 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 these Okanagan based animation companies and is a devastating cut, resulting in over a hundred job losses already and more likely to come.
On behalf of the affected companies, MLA’s Renee Merrifield (Kelowna Mission), Norm Letnick (Kelowna - Lake Country), Ben Stewart (Kelowna West) and Dan Ashton (Penticton) have written a letter to the Minister of Tourism, Arts, Culture and Sport, Hon. Lana Popham to urgently request reconsideration.
Below is the letter:
"Dear Minister Popham,
Thank you for the important work you are doing to support British Columbians.
As MLAs representing the Okanagan region, we are writing today regarding deep concerns that have been brought to our attention regarding the announcement that effective June 1, 2024, animation productions will be excluded from the regional and distant location tax credits.
As we understand it, the intent of the change is to prevent a growing trend of animation companies using the credit to subsidize remote teleworkers. 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 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.
On behalf of the animation companies that have reached out to us, can you provide clarification and confirmation that you will work with them to mitigate the severe negative impact this would have on their brick-and-mortar studios? The suggestion brought forward is to modify the wording to clarify that only companies based in the regions are eligible to apply for distance and regional credits.
Thank you for your consideration. We look forward to hearing back from you.
Kind regards,
MLA Renee Merrifield Kelowna-Mission
MLA Norm Letnick Kelowna-Lake Country
MLA Ben Stewart Westside-Kelowna
MLA Dan Ashton Penticton"