No shocker to yourself – film funding does not happen by itself. Film incentives provided by the government in Canada and also the film tax credits themselves play can play a crucial role within the successful completion and financing of your film, TV, and digital animation projects in Canada.
Being a producer, director or owner of a film, television, or digital animation project related to Canada you may 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 one of our clients made the state that film financing is ‘ easy ‘. The reality is, though, that when you’re trying to find 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 us government of Canada, and beneath the proper circumstances who wouldn’t need a partner like this.
The film incentives supplied by the government and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, while we stated, be a significant portion of your general financing budget and challenge. Typically film funding of this type is carried out by independent producers instead of major studios, but we’re quite certain the big boys use the strategy also.
That is surprised when we state that the film industry in general includes a risk element with it, and when you can eliminate 30-40% of this risk right from the gate then clearly you are 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 on your investment. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily need to be a commercial 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 round out your finance plan.
Just what exactly must you do today to maximize on the utilization of prnewswire.com in Canada. A bunch of common sense helps. You should be capable of demonstrate towards the lender which you have a task that can 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 own project needs to align for the marketing and technical side of your own plans. How is that this done, ask clients. It is actually done by surrounding on your own having a proper film tax credit advisor and accountant, that have the event to guide you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not your message we convey. You have to clearly demonstrate a practical budget, the way you will handle over runs, and your timelines. And that we remind readers that has to do with every aspect in the industry, whether it be a film 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 job as being a person receiving film tax credit financing in Canada would be to demonstrate that budgets and schedules along with other committed finances will ‘ combine. ‘Generally independent projects get together with time, and proceed through 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 business generally needs a completion bond, which is actually a financial instrument that insures the project if difficulties areas of committed funds aren’t received. This sort of financing bond assures your equity, debt and tax credit financier that unforeseen events will be cared for, rather than putting any project in danger.
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 as well as the financing of the credits can be accomplished for both a when filed as well as with an accrual basis, assisting you further in daily cashflow 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.