Technicolor is going ahead with a planned expansion in Quebec of its special effects studio despite the provincial government’s decision to pare the tax credit to 36 per cent from 45 per cent.
Paris-based Technicolor’s subsidiary Moving Picture Co. is launching an initial expansion phase at its Montreal studio, vice-president of investor relations at Technicolor Emilie Megel said on Monday.
The decision to invest in the Montreal operations means Technicolor is no longer mulling the possibility of putting that money in its Toronto or Vancouver facilities.
“We have several projects in Montreal and we were picked for several films on which the Montreal studio has begun work,” Ms. Megel said in an email message.
Earlier this month, Technicolor general manager Frédéric Rose said in a news report that the Quebec government’s move to shrink the special effects tax credit forced the company to reconsider investing further major sums in Montreal.
Quebec Premier Philippe Couillard’s government reduced film, television and multimedia tax credits last month as part of a broader deficit-cutting effort.
Ontario and British Columbia, the two other provinces where Technicolor has studios, offer tax credits of 45 per cent and 39 per cent, respectively.
Technicolor established its Montreal special effects studio last September.
The company worked on the special effects for U.S. blockbuster X-Men: Days of Future Past.