Know Your Animation Tax Incentives!

Coming by way of a tweet from Cathal Gaffney is an overview of production incentives from around the world put together by Entertainment Partners. Since it focuses on every credit in most major jurisdictions and sub-jurisdictions, I thought it would be easier to tease out the ones pertaining specifcally to animation and comment on those instead,

Starting off in the US, there is Connecticut, whose credit was successful in attracting Blue Sky Studios to the state from its cormer home just next door in New York. While the credit has undoubtedly helped the studio establish a home and serve as a production base for some very successful studios, it has nonetheless served to sap some of the talent from nearby New York City. Nonetheless, it has so far allowed a major studio to remain in the north-east US, for now.

Australia has both federal and territorial credits with the former requiring an “Australianess Test”, something that is common in many countries offering credits (although not all apply to all productions). At the lower level, New South Wales and Queensland offer credits as well. Australia was the first destination for overseas animation production all the way back in the day when Hanna-Barbera among others started the practice in order to save costs. Today, Australia is still quite the contender in the animation scene with Happy Feet being the latest film touted on the Australian government’s quite comprehensive animation site. (No mention of Fern Gully though).

Moving on to the credits that American’s will be most familiar with, British Columbia offers, and has offered extensive credits for quite a while, and have been successful in establishing a “Hollywood North” in the state with the likes of Pixar among others being attracted to set up satellite operations there. Otherwise, home-grown outfits like Nerd Corps take advantage of the talent pool. British Columbia/Vancouver is often cited as the local industry that could stand to lose most should the credits dry up as it is relatively close to the epicenter of Los Angeles.

In contrast both Ontario and Quebec offer credits but appear to have a larger indigenous industry that can support production. Even then it isn’t immune to business failures (sorry, can’t find a link to the exact story) but successes have included the likes of Cake Animation and Atomic Cartoons.

Interestingly enough, France also offers an animation tax credit (up to EUR 4million) that will surely have been used by the likes of Illumination Entertainment as well as Bibo Films for their production, A Monster in Paris.

New Zealand also offers a credit but seems to limit it to shorts only. I suppose there is an obligatory shoutout to Mukpuddy who seem to have a lot of fun making animation down there 🙂

Then there is Taiwan, which has yet to stretch its animation muscles to the extent that Korea and Japan have in recent decades. The credit does seem to be quite generous, so it should not be surprising if we see more content coming from the island in the coming years.

Lastly, there is Ireland, which although is not explicitly outlined as having an animation credit, has nonetheless made the technique its own over the last 15 years. Plenty of studios have reaped its benefit (most obviously Cartoon Saloon with The Secret of Kells) but they have also been active producers of their own content as well; an absolutely essential aspect to tax credits if they are to be successful.

So there you go. There are plenty of places around the world where animation is being subsidised.