Axing film tax credit kills animation project, producer says

A company that had been considering opening an animation studio in Dundurn, Sask., says they can't make a go of it without the province's film employment tax credit, a program that issoon to end.

The idea for an animation studio came from KarmaFilm, which was in Dundurn to make a vampire-based movie, Rufus.

The Saskatoon-based company proposed using the local curling rink forstop-motion animation projects.

However, Anand Ramayya of KarmaFilm told CBC News the studio won't work without provincial tax credit money.

"Basically without the tax credit we won't be able to function in the province at all," Ramayya said. "So we'll have to pull the project and we'll have to move elsewhere."

The mayor of Dundurn, Per Vinding, said the town was keen on the idea, especially the $2 million worth of economic activity associated with it.

"We'd like to see that go ahead," Vinding said. "They've come out and looked at it. They think they can make it work, and we think we can make it work. I think it's just a good thing for us."

However, Ramayya said the business model does not work without the employment tax credit.

"For the town of Dundurn, that means that this seriesthat could have been $2 million a yearwith the production happening right in their home town and right in Saskatchewan, will just evaporate," he said.

Vinding said he remains hopeful the project could yet move ahead, noting that just a few weeks ago he would never have predicted the town would be the location for filming a vampire movie.

"To go from a vampire movie to an animation project, that's about as diverse as you can get," he said.

Vinding said the future of the film tax credit will be discussed at an upcoming meeting of town council.