No shocker to yourself – film funding doesn’t happen by itself. Film incentives available from the federal government in Canada and the film tax credits themselves play can play a vital role within the successful completion and financing of your film, TV, and digital animation projects in Canada.
As a producer, director or owner of any film, television, or digital animation project associated with Canada you may have noticed the successful financing of your project doesn’t happen magically.! What an understatement that is.
We can’t remember when any our clients made the declare that film financing is ‘ easy ‘. The reality is, though, that if you’re trying to find a great partner who simply wants to offer you 30-40% of the total production budget we know a man. A ‘ guy’. Well, not really, it’s the government of Canada, and beneath the proper circumstances who wouldn’t desire a partner like that.
The film incentives offered by the federal and provincial government in Canada total in the many million of dollars. These film tax credits can generally, since we stated, become a significant percentage of your current financing budget and challenge. Typically film funding with this type is performed by independent producers instead of major studios, but we’re quite certain the major boys make use of the strategy also.
Who is surprised whenever we state that the film industry as a whole features a risk element into it, and when you are able eliminate 30-40% of the risk right out from the gate then clearly you might be onto a winning strategy. Suffice to say an excellent director, cast, and story complement your strategy to win!
In film financing, as any business, it’s about money and return on investment. The interesting thing about film tax credits that the project – TV, film and animation doesn’t necessarily have to be a commercial success – (naturally it’s nice after it is).
Can film tax credits decrease the overall risk of a task – our clients certainly believe so. Naturally those other components such as marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
So what must you do in order to maximize on the consumption of prnewswire.com in Canada. A bunch of common sense helps. You should be able to demonstrate for the lender that you have a task that can be fully financed (debt – equity-tax credits) and exactly how the timing of those 3 financial components works.
Simply speaking the organization side of your project must align for the marketing and technical side of your plans. How is this done, ask clients. It really is done by surrounding your self having a proper film tax credit advisor and accountant, that have the knowledge to guide you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s definitely not the content we convey. You need to clearly demonstrate a sensible budget, how you will handle over runs, along with your timelines. So we remind readers that concerns all facets from the industry, whether it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions for the tax credit film funding in Canada. Your work as a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules as well as other committed finances will ‘ come together. ‘Generally independent projects get together as time passes, and go through a predictable ivakdq of financing, shooting, then post production and release.
To keep up some kind of financial conservatism around that challenging timeline the market generally needs a completion bond, which is a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This type of financing bond assures your equity, debt and tax credit financier that unforeseen events will likely be cared for, rather than putting any project at risk.
In summary, investigate film tax credit financing in Canada by speaking to an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of the credits can be achieved on both a when filed or perhaps on an accrual basis, assisting you further in everyday cash flow on your project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.