No shocker to yourself – film funding doesn’t happen on its own. Film incentives provided by the federal government in Canada as well as 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.
As being a producer, director or owner of the film, television, or digital animation project associated with Canada you could have noticed the successful financing of your own project doesn’t happen magically.! What an understatement that is certainly.
We can’t remember when any our clients made the claim that film financing is ‘ easy ‘. The fact is, though, that in case you’re trying to find a great partner who simply wants to present you with 30-40% of your own total production budget we realize a guy. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and underneath the proper circumstances who wouldn’t want a partner like that.
The film incentives provided by the government and provincial government in Canada total within the many million of dollars. These film tax credits can generally, as we stated, be a significant percentage of your general financing budget and challenge. Typically film funding with this type is performed by independent producers rather than major studios, but we’re quite certain the big boys use the strategy also.
That is surprised once we say that the film industry as a whole features a risk element with it, and when you can eliminate 30-40% of that risk right from the gate then clearly you are onto a winning strategy. Suffice to say an excellent director, cast, and story complement your tactic to win!
In film financing, just like any business, it’s about money and return on investment. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily have to be a commercial success – (naturally it’s nice when it is).
Can film tax credits lessen the overall probability of a project – our clients certainly believe so. Naturally those other components such as marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
Just what exactly must you do to maximize on the consumption of kjammedia in Canada. A ton of sound judgment helps. You need to be capable of demonstrate towards the lender that you have a project that can be fully financed (debt – equity-tax credits) and just how the timing of such 3 financial components works.
Simply speaking the organization side of your own project needs to align to the marketing and technical side of the plans. How is this done, ask clients. It is actually carried out by surrounding yourself with 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 most certainly not the message we convey. You should clearly demonstrate a sensible budget, how you will handle over runs, along with your timelines. So we remind readers that has to do with all aspects from the industry, whether it be a film or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions towards the tax credit film funding in Canada. Your job as a recipient of film tax credit financing in Canada is always to demonstrate that budgets and schedules along with other committed finances will ‘ combine. ‘Generally independent projects combine with time, and proceed through a predictable ivakdq of financing, shooting, then post production and release.
To keep some kind of financial conservatism around that challenging timeline the industry generally needs 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, instead of putting your project at risk.
In conclusion, investigate film tax credit financing in Canada by talking with a skilled, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of the credits may be accomplished for both a when filed or even on an accrual basis, assisting you further in daily cashflow on the project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) can help you ace your project for financial success.