ANIMATION COMPANY GOT $49M IN EXCESSIVE TAX CREDITS

Blue Sky Studios, the company behind “Ice Age” and other animated films, received $49 million more in Connecticut state tax credits than it should have, state auditors said in a report released this week.

The Disney-owned company, based in Greenwich, Connecticut, is set to close in April and lay offits more than 450 employees. Disney, which also owns animation powerhouses Walt Disney Animation Studios and Pixar Animation Studios, announced the closure in February, citing difficult economic conditions amid the coronavirus pandemic.

Connecticut auditors said Blue Sky received about $94.4 million in state film production tax credits from the 2017 through 2019 state fiscal years. Auditors said the company instead should have received state digital animation tax credits, which are capped at a total of $15 million per year for all companies combined. That resulted in the company receiving $49.4 million more than it should have, auditors said.