No shocker to yourself – film funding doesn’t happen on its own. Film incentives offered 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 a producer, director or owner of a 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 claim 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 total production budget we know a guy. A ‘ guy’. Well, certainly not, it’s the us government of Canada, and beneath the proper circumstances who wouldn’t desire a partner like that.
The film incentives provided by the federal and provincial government in Canada total within the many million of dollars. These film tax credits can generally, while we stated, be a significant percentage of your current financing budget and challenge. Typically film funding with this type is done by independent producers as opposed to major studios, but we’re quite certain the major boys make use of the strategy also.
That is surprised once we say that the film industry in general has a risk element into it, and when you are able eliminate 30-40% of this risk right out of the gate then clearly you might be on to a winning strategy. Suffice to say a great director, cast, and story complement your technique to win!
In film financing, as any business, it’s about money and return on your investment. The interesting thing about film tax credits is your project – TV, film and animation doesn’t necessarily have to be a professional 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 including marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
What exactly are you looking to do today to maximize on the consumption of prnewswire in Canada. A ton of sound judgment helps. You need to be able to demonstrate towards the lender which you have a project that can be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the company side of your own project needs to align for the marketing and technical side of the plans. How is that this done, ask clients. It is actually carried out by surrounding yourself with a proper film tax credit advisor and accountant, that have the knowledge to assist you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the content we convey. You need to clearly demonstrate a realistic budget, how you will handle over runs, and your timelines. And we remind readers that has to do with all facets 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 for the tax credit film funding in Canada. Your work as a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules and other committed finances will ‘ get together. ‘Generally independent projects combine 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 business generally demands a completion bond, which is actually a financial instrument that insures the project if difficulties parts of committed funds aren’t received. This kind of financing bond assures your equity, debt and tax credit financier that unforeseen events is going to be looked after, instead of putting any project in danger.
To sum up, investigate film tax credit financing in Canada by talking to a seasoned, 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 perhaps on an accrual basis, assisting you further in daily cash flow on your own project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.