No shocker to yourself – film funding doesn’t happen itself. Film incentives available from the us government in Canada as well as the film tax credits themselves play can play a huge role within 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 associated with Canada you could have noticed the successful financing of your 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 if you’re searching for a great partner who simply wants to offer you 30-40% of your own total production budget we understand a man. A ‘ guy’. Well, not really, it’s the federal government of Canada, and underneath the proper circumstances who wouldn’t want a partner like this.
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, as we stated, become a significant part of your general financing budget and challenge. Typically film funding with this type is carried out by independent producers rather than major studios, but we’re quite certain the major boys use the strategy also.
Who is surprised whenever we say that the film industry in general features 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 to a winning strategy. Suffice to state a good director, cast, and story complement your technique to win!
In film financing, just like any business, it’s about money and return on your investment. The interesting thing about film tax credits is that 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 chance 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 are you looking to do today to maximize on the usage of Kia Jam in Canada. A lot of common sense helps. You should be able to demonstrate to the lender that you have a task that may be fully financed (debt – equity-tax credits) and exactly how the timing of such 3 financial components works.
Simply speaking the company side of your project must align to the marketing and technical side of your plans. How is it done, ask clients. It is actually performed by surrounding yourself using a proper film tax credit advisor and accountant, who have the knowledge to assist you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s definitely not your message we convey. You should clearly demonstrate a sensible budget, the way you will handle over runs, along with your timelines. And we remind readers that concerns all facets in the industry, whether it be a movie 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 a person receiving film tax credit financing in Canada would be to demonstrate that budgets and schedules and other committed finances will ‘ get together. ‘Generally independent projects combine with time, and proceed through a predictable ivakdq of financing, shooting, then post production and release.
To keep up some sort of financial conservatism around that challenging timeline the market generally requires a completion bond, which is a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This sort of financing bond assures your equity, debt and tax credit financier that unforeseen events is going to be taken care of, as opposed to putting your project in danger.
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 also the financing of the credits may be accomplished on a when filed or perhaps on an accrual basis, assisting you further in everyday cash flow on the project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.