No shocker to yourself – film funding does not happen by itself. Film incentives provided by the us 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.
As being a producer, director or owner of any film, television, or digital animation project associated with Canada you may have noticed the successful financing of the 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 looking for a great partner who simply wants to offer you 30-40% of your own total production budget we realize a man. A ‘ guy’. Well, certainly not, it’s the federal government of Canada, and underneath the proper circumstances who wouldn’t need a partner like this.
The film incentives supplied by the federal and provincial government in Canada total in the many million of dollars. These film tax credits can generally, as we stated, be a significant percentage of your overall financing budget and challenge. Typically film funding with this type is carried out by independent producers as opposed to major studios, but we’re quite certain the big boys make use of the strategy also.
Who is surprised whenever we claim that the film industry in general has a risk element to it, and when you are able eliminate 30-40% of this risk right from the gate then clearly you happen to be onto 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 investment. 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 when it is).
Can film tax credits lessen the overall probability 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.
Just what exactly must you do in order to maximize on the utilization of prnewswire.com in Canada. A bunch of good sense helps. You need to be able to demonstrate for the lender you have a project that may be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the business side of the project must align towards the marketing and technical side of your plans. How is this done, ask clients. It is actually done by surrounding on your own having a proper film tax credit advisor and accountant, who may have the event to guide you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the message we convey. You have to clearly demonstrate a sensible budget, how you will will handle over runs, along with your timelines. And that we remind readers that concerns all facets in the industry, whether it be a film or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions towards the tax credit film funding in Canada. Your work as a person receiving film tax credit financing in Canada is always to demonstrate that budgets and schedules as well as other committed finances will ‘ get together. ‘Generally independent projects get together as time passes, and proceed through a predictable ivakdq of financing, shooting, and then post production and release.
To keep up some type of financial conservatism around that challenging timeline the business generally demands a completion bond, which is 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 will be taken care of, rather than putting any project in jeopardy.
In summary, 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 your credits may be accomplished for both a when filed or perhaps on an accrual basis, assisting you further in day to day income on the project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace any project for financial success.