While Mackay cites tax incentives as being "attractive to studios," she says that the way rebates work is not always understood. "They think they have to shoot here to get the rebate, but they don't," Mackay explains. "They just have to have the vfx done here to get a rebate." Mackay notes that the British Columbia Film Commission has been holding information sessions to explain just what is eligible for rebates.

"I believe the Canadian film tax credit system is very effective at helping Canadian projects get off the ground," says Frantic Films' Bond. "We have a department creating Canadian shows for Canadian audiences, and that side of the company is doing incredibly well.

"In terms of post-production vfx, the credit is different in each province, and how that inter-relates with bids and projects is very complex," Bond continues. "Some clients want to handle the tax credit themselves and we do not have access due to the way the credit was designed. Some do not have the infrastructure or the size to handle the tax credit and it becomes a part of our project. And others handle it in entirely different ways. Some credits are for specific training or tasks that aren't designed for film productions to take advantage of, and so forth."

"I don't think the British Columbia visual effects industry as we know it would even exist without the kinds of aggressive tax credits created by the BC government," admits Atmosphere's Hoey. "In addition to the basic tax credit, there is also the so-called DAVE (Digital Animation and Visual Effects) tax credit, which greatly increases our ability to compete.

Warren Franklin of Rainmaker, which did the vfx for Blades of Glory, notes that staffs have doubled in size and more studios are coming to them for vfx work. © 2007 DreamWorks Llc. All rights reserved. Courtesy of Rainmaker.

"Because every province has different tax credits, I almost don't think of there being a 'Canadian' vfx market so much as there being 'Vancouver,' 'Toronto' and 'Montreal' markets," observes Hoey.

"It's a combination of the tax credit and insurance of quality that is drawing the work," adds Hybride's Raymond. "We can be judged on the work we've done."

Raymond notes that another incentive of the past -- a favorable exchange rate -- has been ebbing due to the stronger Canadian dollar. "It was a huge attraction," he says, "but where the dollar was once 68 cents [vs. the U.S. dollar], it is now 97 cents, to quote a job. That's where the tax credit may give us a break now. But the real attraction is the quality of work we provide. We're very lucky that we're being asked to participate and be in competition with the shops in L.A."

Benoit Drouin, evp, Buzz Image Group, agrees, saying, "With or without an unfavorable dollar exchange, our rate card is typically lower than those of Hollywood or Europe. Our experience has showed us that the deciding factor is based on quality, not price."

Homegrown Talent
Whether national or regional, the incentive system means that, for the most part, Canadian talent is being hired to do the work. "All of the talent we hire is Canadian," Gray Matter's Mackay says. "We have to, to get the rebate." Mackay says that it can be a challenge for her firm to find the talent it needs, because Gray Matter prefers to hire only seasoned professionals.

"Recruiting is always the toughest part of running a vfx company," suggests Atmosphere's Hoey. "There is a lot of competition for good people right now, so it can sometimes be difficult to find the right person, and expensive when we do. But the talent pool in British Columbia is amazing, and growing all the time. As British Columbia continues to make strides in the feature film market, I anticipate that the combination of cool projects and quality of life will entice an increasing number of talented artists away from other markets such as L.A. and London."