No shocker to yourself – film funding does not happen itself. Film incentives provided by the federal government in Canada as well as 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.
As a producer, director or owner of any film, television, or digital animation project related to Canada you might 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 claim that film financing is ‘ easy ‘. The reality is, though, that when you’re searching for a great partner who simply wants to present you with 30-40% of your own total production budget we realize a man. A ‘ guy’. Well, not necessarily, it’s the us government of Canada, and beneath the proper circumstances who wouldn’t want a partner like that.
The film incentives supplied by the federal and provincial government in Canada total within the many million of dollars. These film tax credits can generally, as we stated, become a significant portion of your current financing budget and challenge. Typically film funding with this type is done by independent producers as opposed to major studios, but we’re quite certain the big boys use the strategy also.
Who may be surprised when we claim that the film industry in general has a risk element to it, and when you are able eliminate 30-40% of that risk right from the gate then clearly you might be to a winning strategy. Suffice to say an excellent director, cast, and story complement your tactic to win!
In film financing, just like any business, it’s about money and return. The interesting thing about film tax credits is 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 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 are you looking to do today to maximize on the utilization of kjammedia in Canada. A lot of common sense helps. You need to be capable of demonstrate for the lender you have a task that may be fully financed (debt – equity-tax credits) and exactly how the timing of these 3 financial components works.
Simply speaking the company side of your project must align for the marketing and technical side of your own plans. How is that this done, ask clients. It really is carried out by surrounding your self having a proper film tax credit advisor and accountant, who may have the event to help you with the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the message we convey. You need to clearly demonstrate a sensible budget, how you will will handle over runs, and your timelines. And we remind readers that is related to all aspects of the industry, whether it be a movie or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions to the tax credit film funding in Canada. Your job being a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules along with other committed finances will ‘ get together. ‘Generally independent projects come together with time, and go through a predictable ivakdq of financing, shooting, then post production and release.
To keep some kind of financial conservatism around that challenging timeline the industry generally requires a completion bond, that 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 is going to be taken care of, as opposed to putting your project in jeopardy.
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 the financing of your own credits can be accomplished for both a when filed as well as on an accrual basis, assisting you further in daily cash flow on the project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) may help you ace your project for financial success.