BC’s Animation Tax Credits Just Got a Huge Boost. Here’s What It Means for the Industry
The BC animation industry just got some major news—higher tax credits are on the way, making the province one of the most competitive places in Canada for animation production and animation careers. On March 4th, the BC Government officially announced the details of these increased incentives, which could offer studios up to 42% in tax credits on their entire production budget. This is a game-changer for established studios and young animators like our graduates from 2D Animation & Digital Art and 3D Animation.
A Look Back: How Animation Careers Were Impacted When Credits Were Reduced in 2024
For years, BC has been a powerhouse in the animation and VFX industries, attracting major productions from around the world. However, in 2024, the provincial government made adjustments to the Regional and Distant Location Tax Credit, significantly reducing financial incentives for studios operating outside of the Vancouver area. This change made it harder for studios in cities like Kelowna, Victoria, and other regional hubs to compete with Vancouver-based companies and global competitors.
Many industry professionals voiced concerns that the reduction could drive business away from BC’s smaller cities, limit job opportunities for aspiring animators, and reduce the province’s overall attractiveness to international productions.
Now, with the return of enhanced tax credits, the province is set to reclaim its position as one of Canada’s top destinations for animation production.
What’s Changing in 2025?
Starting January 1, 2025, these new tax incentives will take effect, offering significant financial advantages to animation productions in BC. Here’s how it breaks down:
- BC Basic Tax Credit: Increasing from 28% to 36% on eligible labor
- Digital Animation Tax Credit (the “Dave Credit”): An additional 16% on eligible labor
- Regional & Distant Location Tax Credit: 12% bonus for eligible studios outside Vancouver
- Total Tax Credit Potential: 42% of the entire production budget
These changes mean that studios in regional areas, such as Kelowna and other locations—can now offer some of the most competitive tax credits in Canada.
What This Means for Young Animators
For animation students and early-career animators, this is incredible news. The return of the Regional and Distant Location Tax Credit makes it more attractive for studios to open and expand in smaller cities, creating more job opportunities outside of Vancouver.
Here’s why this matters:
More Studios, More Jobs – With stronger financial incentives, animation studios in Kelowna, Victoria, and beyond will have more funding to hire new talent.
Easier Entry into the Industry – More studios mean more job openings which mean more chances for new graduates to land their first industry role.
Opportunities Outside Vancouver – Not everyone wants to move to a big city. These tax credits encourage growth in regional hubs, giving young animators more choices.
A Stronger Future for BC Animation – By making BC one of the best places in Canada to produce animation, these tax credits ensure long-term industry growth.
The Future Looks Bright for BC Animation
With the most competitive tax credits in Canada, a thriving talent pool, and cutting-edge studios across the province, BC is set to become an even bigger animation powerhouse. Whether you’re an aspiring animator looking to enter the industry or a production company scouting for your next project location, BC has just become one of the best places to be.
Our animation programs are a great way to kickstart your creative career!
We teach skills including:
- Character Animation
- Animation Software (Toon Boom Storyboard Pro, Adobe Creative Cloud, Autodesk Motion Builder, Unreal and more*)
- Workflow and studio best practices
- Visual storytelling and composition
- Portfolio development
Both programs take advantage of our dedicated animation lab classrooms, graduate support, mentoring, and career guidance.
*Software learned is dependent on program of choice. For complete details, please visit our 2D Animation & Digital Art and 3D Animation program pages.
If you’re passionate about animation and want to be part of this exciting industry shift, now is the perfect time to start your journey. College for Arts and Technology offers two animation diploma programs: 2D Animation & Digital Art and 3D Animation. Both are offered in-person, on our campus in Kelowna, and teach the hands-on and soft skills needed to pursue a career in animation. If you’re interested and would like to speak with someone in our Admissions Department, fill out an inquiry form.