No shocker to yourself – film funding does not happen itself. Film incentives available from the federal government in Canada and the film tax credits themselves play can play a vital role in the successful completion and financing of the film, TV, and digital animation projects in Canada.
Being a producer, director or owner of any film, television, or digital animation project related to Canada you might have noticed the successful financing of the project doesn’t happen magically.! What an understatement which is.
We can’t remember when any our clients made the claim that film financing is ‘ easy ‘. The reality is, though, that when you’re searching for a great partner who simply wants to provide you with 30-40% of your own total production budget we realize a man. A ‘ guy’. Well, not really, it’s the government of Canada, and underneath the proper circumstances who wouldn’t want a partner that way.
The film incentives offered by the federal and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, as we stated, be considered a significant part of your general financing budget and challenge. Typically film funding of this type is done by independent producers rather than major studios, but we’re quite certain the major boys utilize the strategy also.
That is surprised when we state that the film industry as a whole features a risk element to it, and when you can eliminate 30-40% of the risk right out from the gate then clearly you happen to be to a winning strategy. Suffice to express a great director, cast, and story complement your tactic to win!
In film financing, as any business, it’s about money and return. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily have to be a professional success – (naturally it’s nice after it is).
Can film tax credits reduce the overall risk of a project – our clients certainly believe so. Naturally those other components such as marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
So what are you looking to do to maximize on the consumption of prnewswire.com in Canada. A ton of good sense helps. You have to be able to demonstrate towards the lender which you have a task which can be fully financed (debt – equity-tax credits) and exactly how the timing of those 3 financial components works.
Simply speaking the company side of the project needs to align to the marketing and technical side of your plans. How is this done, ask clients. It really is carried out by surrounding your self having a proper film tax credit advisor and accountant, who have the experience to assist you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s definitely not the message we convey. You need to clearly demonstrate a sensible budget, the way you will handle over runs, and your timelines. So we remind readers that concerns all aspects of 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 job being a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules and other committed finances will ‘ get together. ‘Generally independent projects combine over time, and undergo a predictable ivakdq of financing, shooting, and then post production and release.
To keep up some type of financial conservatism around that challenging timeline the business generally demands a completion bond, which is a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This kind of financing bond assures your equity, debt and tax credit financier that unforeseen events will likely be looked after, instead of putting any project at risk.
To sum up, investigate film tax credit financing in Canada by speaking to a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of your credits can be accomplished on both a when filed or perhaps with an accrual basis, assisting you further in day to day cash flow on the project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) can help you ace your project for financial success.