No shocker to yourself – film funding does not happen on its own. Film incentives available from the government in Canada and the film tax credits themselves play can play a crucial role in the successful completion and financing of your film, TV, and digital animation projects in Canada.
Being a producer, director or owner of the film, television, or digital animation project associated with Canada you could have noticed the successful financing of your own 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 in case you’re looking for a great partner who simply wants to offer you 30-40% of your own total production budget we know a guy. A ‘ guy’. Well, not really, it’s the us government of Canada, and underneath the proper circumstances who wouldn’t want a partner like this.
The film incentives offered by the government and provincial government in Canada total in the many million of dollars. These film tax credits can generally, while we stated, be a significant portion of your current financing budget and challenge. Typically film funding of the type is done by independent producers rather than major studios, but we’re quite certain the major boys make use of the strategy also.
That is surprised when we say that the film industry as a whole features a risk element to it, and when you are able eliminate 30-40% of the risk right out from the gate then clearly you happen to be onto a winning strategy. Suffice to state an excellent director, cast, and story complement your technique to win!
In film financing, just like any business, it’s about money and return on your investment. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily must be a commercial success – (naturally it’s nice after it is).
Can film tax credits decrease the overall risk of a project – our clients certainly believe so. Naturally those other components including marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
Just what exactly do you need to do in order to maximize on the consumption of Kia Jam in Canada. A bunch of common sense helps. You need to be able to demonstrate towards the lender that you have a task which can be fully financed (debt – equity-tax credits) and exactly how the timing of these 3 financial components works.
Simply speaking the company side of the project must align to the marketing and technical side of the plans. How is it done, ask clients. It is actually done by surrounding yourself using a proper film tax credit advisor and accountant, that have the event to guide you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not your message we convey. You need to clearly demonstrate a practical budget, how you will handle over runs, as well as your timelines. So we remind readers that concerns every aspect from the industry, whether it be a movie or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions for the tax credit film funding in Canada. Your work as being a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules and other committed finances will ‘ combine. ‘Generally independent projects come together as time passes, and go through a predictable ivakdq of financing, shooting, then post production and release.
To maintain some type 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 parts 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 your project in jeopardy.
In conclusion, investigate film tax credit financing in Canada by talking with a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and the financing of the credits can be accomplished on both a when filed or even with an accrual basis, assisting you further in everyday cash flow on the project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) will help you ace any project for financial success.