No shocker to yourself – film funding doesn’t happen itself. Film incentives provided by the government in Canada as well as the film tax credits themselves play can play a crucial role within the successful completion and financing of your film, TV, and digital animation projects in Canada.
As a producer, director or owner of the 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 certainly.
We can’t remember when any our clients made the claim that film financing is ‘ easy ‘. The reality is, though, that in case you’re trying to find a great partner who simply wants to provide you with 30-40% of your total production budget we understand a man. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and underneath the proper circumstances who wouldn’t desire a partner like that.
The film incentives supplied by the government and provincial government in Canada total in the many million of dollars. These film tax credits can generally, while we stated, become a significant part of your general financing budget and challenge. Typically film funding with this type is performed 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 say that the film industry in general features a risk element to it, and when you are able eliminate 30-40% of this risk right out from the gate then clearly you might be on to a winning strategy. Suffice to say a good 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 that the project – TV, film and animation doesn’t necessarily need to be an industrial success – (naturally it’s nice when it is).
Can film tax credits lessen the overall risk of a task – 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.
What exactly do you need to do to maximize on the consumption of Kia Jam in Canada. A bunch of good sense helps. You should be capable of demonstrate for the lender that you have a project that can be fully financed (debt – equity-tax credits) and exactly how the timing of these 3 financial components works.
Simply speaking the business side of the project has to align to the marketing and technical side of the plans. How is that this done, ask clients. It really is done by surrounding on your own with a proper film tax credit advisor and accountant, who may have the experience to assist you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the message we convey. You have to clearly demonstrate a practical budget, the way you will handle over runs, as well as your timelines. So we remind readers that is related to every aspect 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 towards the tax credit film funding in Canada. Your work being a person receiving film tax credit financing in Canada would be to demonstrate that budgets and schedules along with other committed finances will ‘ come together. ‘Generally independent projects combine over time, and go through a predictable ivakdq of financing, shooting, and after that post production and release.
To maintain some type of financial conservatism around that challenging timeline the market generally requires a completion bond, which is a financial instrument that insures the project if difficulties regions 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 looked after, instead of putting your project at risk.
In summary, investigate film tax credit financing in Canada by talking with a skilled, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of your credits may be accomplished on both a when filed as well as on an accrual basis, assisting you further in everyday cash flow on your project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) may help you ace your project for financial success.