Digital Animation Benefits from Film Tax Credit Changes

Changes to the Film Industry Tax Credit are bringing business to the province.

The local digital animation industry has shown steady growth since the 25 per cent production cost cap was removed in December.

The change to the credit means labour-intensive sectors of the industry, such as digital animators, are able to use it more effectively, helping them secure more contracts for Nova Scotia.

"The removal of the cap has inserted a shot of energy into the industry," said Adam Mimnagh, executive producer at Huminah Huminah Animation. "Two days after the announcement, we were able to secure a one-year contract with Nelvana Entertainment, allowing us to hire nine additional staff members."

Huminah Huminah Animation is a service studio in Halifax specializing in 2D, 2.5D and 3D animated projects. Its latest contract is a co-production between Nelvana Entertainment and Hit Entertainment for 52 episodes of the TV series Mike the Knight.

Mike the Knight, created by Alexander Bar (Lunar Jim) and written by Marc Seal (Bob the Builder), follows a 10-year-old boy who wants to be a knight like King Arthur as he takes preschoolers through a world of castles, quests, dragons and trolls. The series will air on the preschool network Treehouse in Canada and has been pre-sold to broadcasters worldwide.

Huminah Huminah does not expect the industry to slow anytime soon. With two more 65-week contracts in discussions, it hopes to hire an additional 34 people.

"We're looking forward to a busy two or three years," said Mr. Mimnagh.

"We are thrilled to see companies such as Huminah Huminah benefitting from the tax credit change," said Ann MacKenzie, president and CEO of Film Nova Scotia. "Nova Scotia's film, television, and new media industry is one of the largest in Canada. The removal of this cap allows us to keep our competitive advantage when competing with other provinces for animation productions."

Film Nova Scotia is a provincial Crown agency reporting to the Minister of Economic and Rural Development and Tourism. The corporation provides a wide range of programs and services to support the province's audiovisual industry. With an industry that employs almost 3,000 people and contributes $100 million to the economy annually, Nova Scotia is among the largest production centres in Canada.