No shocker to yourself – film funding doesn’t happen on its own. Film incentives available from the government in Canada and also 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.
As a producer, director or owner of any film, television, or digital animation project related 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 our clients made the state that film financing is ‘ easy ‘. The truth is, though, that in case you’re trying to find a great partner who simply wants to offer you 30-40% of the total production budget we realize a man. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and beneath the proper circumstances who wouldn’t desire a partner like that.
The film incentives supplied by the federal and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, since we stated, be considered a significant percentage of your overall financing budget and challenge. Typically film funding of the type is done by independent producers rather than major studios, but we’re quite certain the big boys use the strategy also.
That is surprised when we say that the film industry overall includes a risk element with it, and when you are able eliminate 30-40% of the risk right from the gate then clearly you might be on to a winning strategy. Suffice to say a good director, cast, and story complement your strategy 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 that the 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 lessen the overall probability of a project – 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 in order to maximize on the utilization of Kia Jam in Canada. A lot of good sense helps. You should be capable of 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 your project has to align towards the marketing and technical side of the plans. How is this done, ask clients. It is carried out by surrounding on your own using a proper film tax credit advisor and accountant, who may have the event 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 will handle over runs, along with your timelines. So we remind readers that is related to every aspect of the industry, whether 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 being a person receiving film tax credit financing in Canada is always to demonstrate that budgets and schedules as well as other committed finances will ‘ combine. ‘Generally independent projects get together over time, and go through a predictable ivakdq of financing, shooting, and after that post production and release.
To maintain some sort of financial conservatism around that challenging timeline the market 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 kind of financing bond assures your equity, debt and tax credit financier that unforeseen events will be looked after, instead of putting your project in danger.
In conclusion, investigate film tax credit financing in Canada by talking with a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of your own credits can be achieved on both a when filed or perhaps upon an accrual basis, assisting you further in everyday cash flow on the project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) may help you ace any project for financial success.