No shocker to yourself – film funding doesn’t happen by itself. Film incentives provided by the federal government in Canada and also the film tax credits themselves play can play a huge role in 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 linked to Canada you may 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 declare that film financing is ‘ easy ‘. The truth is, though, that in case you’re trying to find a great partner who simply wants to present you with 30-40% of the total production budget we realize a guy. A ‘ guy’. Well, not really, it’s the government of Canada, and under the proper circumstances who wouldn’t need a partner like this.
The film incentives provided by the government and provincial government in Canada total in the many million of dollars. These film tax credits can generally, while we stated, become a significant percentage of your general financing budget and challenge. Typically film funding of 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 as a whole 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 might be to a winning strategy. Suffice to say an excellent director, cast, and story complement your technique to win!
In film financing, as any business, it’s about money and return. The interesting thing about film tax credits that the project – TV, film and animation doesn’t necessarily must be a professional success – (naturally it’s nice after it is).
Can film tax credits decrease 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.
So what do you need to do today to maximize on the usage of Kia Jam in Canada. A bunch of sound judgment helps. You have to be able to demonstrate to the lender you have a task that can be fully financed (debt – equity-tax credits) and how the timing of these 3 financial components works.
Simply speaking the business side of the project has to align towards the marketing and technical side of the plans. How is it done, ask clients. It is actually performed by surrounding your self having a proper film tax credit advisor and accountant, who have the knowledge to assist you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not your message we convey. You should clearly demonstrate a realistic budget, how you will handle over runs, as well as your timelines. So we remind readers that concerns all facets of 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 work as a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules along with other committed finances will ‘ come together. ‘Generally independent projects combine with time, and undergo a predictable ivakdq of financing, shooting, and after that post production and release.
To keep up some type of financial conservatism around that challenging timeline the industry 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 is going to be cared for, as opposed to putting any project at risk.
In conclusion, investigate film tax credit financing in Canada by speaking to a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and the financing of your credits can be achieved for both a when filed as well as on an accrual basis, assisting you further in everyday income on your project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.