No shocker to yourself – film funding does not happen itself. Film incentives provided by the government in Canada as well as 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 a film, television, or digital animation project linked to Canada you might have noticed the successful financing of the project doesn’t happen magically.! What an understatement which is.
We can’t remember when any one of our clients made the state that film financing is ‘ easy ‘. The fact is, though, that when you’re trying to find a great partner who simply wants to provide you with 30-40% of your own total production budget we realize a guy. A ‘ guy’. Well, not really, it’s the us government of Canada, and under the proper circumstances who wouldn’t desire a partner that way.
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, be considered a significant part of your current financing budget and challenge. Typically film funding of this type is done by independent producers as opposed to major studios, but we’re quite certain the large boys use the strategy also.
That is surprised when we claim that the film industry overall includes a risk element with it, and when you are able eliminate 30-40% of this risk right out of the gate then clearly you might be to a winning strategy. Suffice to say an excellent director, cast, and story complement your strategy to win!
In film financing, as 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 lessen the overall chance of a project – 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.
Just what exactly must you do in order to maximize on the utilization of prnewswire.com in Canada. A ton of sound judgment helps. You have to be in a position to demonstrate to the lender which you have a project that may be fully financed (debt – equity-tax credits) and how the timing of these 3 financial components works.
Simply speaking the organization side of your own project must align to the marketing and technical side of your own plans. How is this done, ask clients. It is performed by surrounding on your own using a proper film tax credit advisor and accountant, who may have the knowledge to assist you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not the message we convey. You should clearly demonstrate a realistic budget, how you will handle over runs, and your timelines. And we remind readers that has to do with every aspect in the industry, may it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions to the tax credit film funding in Canada. Your job as being a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules as well as other committed finances will ‘ come together. ‘Generally independent projects come together with time, and undergo a predictable ivakdq of financing, shooting, and after that post production and release.
To keep up some sort of financial conservatism around that challenging timeline the market generally demands a completion bond, that is a financial instrument that insures the project if difficulties areas 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.
In summary, investigate film tax credit financing in Canada by talking to a skilled, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of the credits may be accomplished on both a when filed or perhaps with an accrual basis, assisting you further in day to day income on your own 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.