No shocker to yourself – film funding does not happen itself. Film incentives available from the federal government in Canada and also the film tax credits themselves play can play a huge role within the successful completion and financing of the film, TV, and digital animation projects in Canada.
As being a producer, director or owner of any film, television, or digital animation project linked to Canada you may have noticed the successful financing of your own project doesn’t happen magically.! What an understatement that 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 looking for a great partner who simply wants to present you with 30-40% of the total production budget we realize a man. A ‘ guy’. Well, not really, it’s the federal government of Canada, and beneath the proper circumstances who wouldn’t need a partner like that.
The film incentives provided by the government and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, since we stated, be a significant percentage of your current financing budget and challenge. Typically film funding of this type is carried out by independent producers as opposed to major studios, but we’re quite certain the large boys utilize the strategy also.
Who may be surprised whenever we claim that the film industry overall features a risk element with it, and when you are able eliminate 30-40% of this risk right from the gate then clearly you happen to be onto a winning strategy. Suffice to say a good 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 that your project – TV, film and animation doesn’t necessarily must be a commercial success – (naturally it’s nice when it is).
Can film tax credits reduce 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.
So what are you looking to do today to maximize on the utilization of Kia Jam in Canada. A ton of sound judgment helps. You need to be in a position to demonstrate towards the lender you have a task that can be fully financed (debt – equity-tax credits) and exactly how the timing of such 3 financial components works.
Simply speaking the organization side of your own project has to align for the marketing and technical side of your plans. How is this done, ask clients. It is carried out by surrounding your self using a proper film tax credit advisor and accountant, who have the event to guide you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not your message we convey. You should clearly demonstrate a practical budget, the way you will handle over runs, along with your timelines. And that we remind readers that is related to all aspects of the industry, may it be a film or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that they have committed millions for 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 as well as other committed finances will ‘ get together. ‘Generally independent projects combine as time passes, and proceed through a predictable ivakdq of financing, shooting, and then post production and release.
To keep up some sort of financial conservatism around that challenging timeline the industry 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 taken care of, as opposed to putting your project in danger.
In conclusion, investigate film tax credit financing in Canada by speaking to an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of the credits can be accomplished for both a when filed as well as with an accrual basis, assisting you further in daily cashflow on your project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) can help you ace any project for financial success.