No shocker to yourself – film funding doesn’t happen itself. Film incentives available from the federal government in Canada and also the film tax credits themselves play can play a huge role in the successful completion and financing of your film, TV, and digital animation projects in Canada.
Being a producer, director or owner of a film, television, or digital animation project related to Canada you could have noticed the successful financing of your own 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 truth is, though, that in case you’re searching for a great partner who simply wants to offer you 30-40% of your own total production budget we understand a man. A ‘ guy’. Well, certainly not, it’s the federal government of Canada, and under the proper circumstances who wouldn’t desire a partner that way.
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, since we stated, be considered a significant portion of your overall financing budget and challenge. Typically film funding of the type is done by independent producers instead of major studios, but we’re quite certain the major boys utilize the strategy also.
Who may be surprised once we state that the film industry overall has a risk element into it, and when you can eliminate 30-40% of this risk right out of the gate then clearly you might be onto a winning strategy. Suffice to express a great director, cast, and story complement your technique to win!
In film financing, just like any business, it’s about money and return. The interesting thing about film tax credits is your project – TV, film and animation doesn’t necessarily must be a professional success – (naturally it’s nice when it is).
Can film tax credits decrease the overall probability 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.
What exactly must you do to maximize on the utilization of prnewswire in Canada. A lot of good sense helps. You should be able to demonstrate towards the lender which you have a project that may be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the business side of your project must align to the marketing and technical side of the plans. How is this done, ask clients. It is actually performed by surrounding yourself having a proper film tax credit advisor and accountant, who may have the knowledge to guide you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not the content we convey. You have to clearly demonstrate a practical budget, how you will handle over runs, along with your timelines. So we remind readers that concerns every aspect from the industry, may it be a movie or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that they have committed millions to the tax credit film funding in Canada. Your task as being a recipient of film tax credit financing in Canada is always to demonstrate that budgets and schedules along with other committed finances will ‘ come together. ‘Generally independent projects come together with time, and go through a predictable ivakdq of financing, shooting, then post production and release.
To keep up some type of financial conservatism around that challenging timeline the market generally needs a completion bond, that is a financial instrument that insures the project if difficulties parts 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 taken care of, rather than putting your project in danger.
To sum up, 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 the credits can be achieved for both a when filed as well as with an accrual basis, assisting you further in daily cashflow on your project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.