No shocker to yourself – film funding does not happen by itself. Film incentives provided by the us government in Canada as well as the film tax credits themselves play can play a crucial role in the successful completion and financing of the film, TV, and digital animation projects in Canada.
As a producer, director or owner of the film, television, or digital animation project linked to Canada you may 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 reality is, though, that in case you’re searching for a great partner who simply wants to provide you with 30-40% of your own total production budget we understand a guy. A ‘ guy’. Well, not necessarily, it’s the us government of Canada, and beneath the proper circumstances who wouldn’t want a partner like that.
The film incentives offered by the federal and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, while we stated, become a significant part of your current financing budget and challenge. Typically film funding with this type is done by independent producers instead of major studios, but we’re quite certain the large boys make use of the strategy also.
Who is surprised whenever we claim that the film industry overall includes a risk element with it, and when you are able eliminate 30-40% of that risk right out from the gate then clearly you are on to a winning strategy. Suffice to state 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 that your 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 decrease the overall probability of a task – our clients certainly believe so. Naturally those other components such as marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
So what do you need to do in order to maximize on the consumption of Kia Jam in Canada. A lot of common sense helps. You need to be able to demonstrate for the lender you have a task that may be fully financed (debt – equity-tax credits) and just how the timing of such 3 financial components works.
Simply speaking the company side of the project has to align to the marketing and technical side of your plans. How is it done, ask clients. It really is done by surrounding yourself using a proper film tax credit advisor and accountant, who may have the event to help you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not the content we convey. You need to clearly demonstrate a practical budget, the way you will handle over runs, as well as your timelines. And we remind readers that has to do with all facets from the industry, whether it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that they have committed millions to the tax credit film funding in Canada. Your work being a person receiving film tax credit financing in Canada is to demonstrate that budgets and schedules and other committed finances will ‘ come together. ‘Generally independent projects come together with time, and undergo a predictable ivakdq of financing, shooting, then post production and release.
To keep some type of financial conservatism around that challenging timeline the market generally requires a completion bond, which is actually a financial instrument that insures the project if difficulties areas 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, rather than putting your project at risk.
To sum up, 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 as well as the financing of your own credits may be accomplished on both a when filed or even with an accrual basis, assisting you further in everyday 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.