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 your film, TV, and digital animation projects in Canada.
Being a producer, director or owner of any film, television, or digital animation project linked to Canada you might 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 when 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 us government of Canada, and underneath 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, while we stated, be considered a significant percentage 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 large boys utilize the strategy also.
Who may be surprised when we state that the film industry overall has 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 an excellent 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 have to be an industrial success – (naturally it’s nice after it is).
Can film tax credits decrease the overall probability of a project – our clients certainly believe so. Naturally those other components like 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 Kia Jam in Canada. A bunch of good sense helps. You should be able to demonstrate to the lender which you have a project which can be fully financed (debt – equity-tax credits) and how the timing of such 3 financial components works.
Simply speaking the company side of your own 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 with a proper film tax credit advisor and accountant, who have the experience to help 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 handle over runs, as well as your timelines. So we remind readers that has to do with 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 may have committed millions towards the tax credit film funding in Canada. Your job as being a person receiving film tax credit financing in Canada would be to demonstrate that budgets and schedules as well as other committed finances will ‘ get together. ‘Generally independent projects combine over time, and proceed through a predictable ivakdq of financing, shooting, then post production and release.
To keep some kind of financial conservatism around that challenging timeline the business generally demands a completion bond, which is actually a financial instrument that insures the project if difficulties areas of committed funds aren’t received. This sort of financing bond assures your equity, debt and tax credit financier that unforeseen events will likely be cared for, rather than putting your project at risk.
In conclusion, investigate film tax credit financing in Canada by talking to an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of your own credits may be accomplished for both a when filed as well as on an accrual basis, assisting you further in daily cash flow on the project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) may help you ace your project for financial success.