No shocker to yourself – film funding doesn’t happen itself. Film incentives offered by the us government in Canada and also 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 the 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 that is.
We can’t remember when any one of our clients made the state that film financing is ‘ easy ‘. The reality is, though, that when you’re looking for a great partner who simply wants to offer you 30-40% of the total production budget we know a man. A ‘ guy’. Well, not really, it’s the federal government of Canada, and under the proper circumstances who wouldn’t want a partner that way.
The film incentives supplied by the federal 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 general financing budget and challenge. Typically film funding with this type is carried out by independent producers as opposed to major studios, but we’re quite certain the big boys use the strategy also.
That is surprised whenever we say that the film industry in general includes a risk element into it, and when you can eliminate 30-40% of this risk right out from the gate then clearly you are to a winning strategy. Suffice to state 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 an industrial success – (naturally it’s nice when it is).
Can film tax credits reduce the overall probability of a task – our clients certainly believe so. Naturally those other components including marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
What exactly must you do today to maximize on the consumption of Kia Jam in Canada. A ton of common sense helps. You have to be in a position to demonstrate to the lender you have a project 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 has to align for the marketing and technical side of your own plans. How is it done, ask clients. It really is carried out by surrounding your self having a proper film tax credit advisor and accountant, that have the experience to help you with 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 sensible budget, how you will handle over runs, and your timelines. So we remind readers that has to do with all aspects of the industry, may it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions to the tax credit film funding in Canada. Your task being a recipient of 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 come together with time, and proceed through a predictable ivakdq of financing, shooting, then post production and release.
To maintain some type of financial conservatism around that challenging timeline the industry generally demands a completion bond, that is a financial instrument that insures the project if difficulties parts 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, instead of putting any project at risk.
To sum up, 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 and 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 income on your own project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) may help you ace any project for financial success.