No shocker to yourself – film funding does not happen on its own. Film incentives offered by the us 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 being a producer, director or owner of any film, television, or digital animation project related to Canada you may have noticed the successful financing of the project doesn’t happen magically.! What an understatement that is.
We can’t remember when any one of our clients made the claim that film financing is ‘ easy ‘. The reality is, though, that if you’re searching for a great partner who simply wants to provide you with 30-40% of your total production budget we know a man. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and under the proper circumstances who wouldn’t need a partner like this.
The film incentives provided by the government and provincial government in Canada total in the many million of dollars. These film tax credits can generally, since we stated, be a significant portion of your current financing budget and challenge. Typically film funding of the type is performed by independent producers as opposed to major studios, but we’re quite certain the large boys make use of the strategy also.
Who is surprised whenever we state that the film industry in general includes a risk element with it, and when you are able eliminate 30-40% of that risk right out from the gate then clearly you are onto a winning strategy. Suffice to express a great director, cast, and story complement your technique to win!
In film financing, as any business, it’s about money and return. The interesting thing about film tax credits that the project – TV, film and animation doesn’t necessarily must be a professional success – (naturally it’s nice after it is).
Can film tax credits decrease the overall probability of a task – our clients certainly believe so. Naturally those other components like marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
So what must you do today to maximize on the utilization of prnewswire.com in Canada. A lot of common sense helps. You have to be able to demonstrate for 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 your project must align towards the marketing and technical side of your own plans. How is this done, ask clients. It is actually carried out by surrounding on your own using a proper film tax credit advisor and accountant, that have the knowledge to guide you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s definitely not your message we convey. You need to clearly demonstrate a practical budget, how you will will handle over runs, and your timelines. And that we remind readers that has to do with all aspects of the industry, whether it be a film or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that they have committed millions towards the tax credit film funding in Canada. Your job as a person receiving film tax credit financing in Canada is always to demonstrate that budgets and schedules as well as other committed finances will ‘ come together. ‘Generally independent projects come together with time, and go through a predictable ivakdq of financing, shooting, and then post production and release.
To maintain some sort of financial conservatism around that challenging timeline the business generally demands a completion bond, that is a financial instrument that insures the project if difficulties areas of committed funds aren’t received. This type of financing bond assures your equity, debt and tax credit financier that unforeseen events will be taken care of, rather than putting any project in jeopardy.
In conclusion, investigate film tax credit financing in Canada by talking with an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of your credits may be accomplished on both a when filed as well as upon an accrual basis, assisting you further in daily income on your project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) will help you ace any project for financial success.