No shocker to yourself – film funding does not happen by itself. Film incentives offered by the government in Canada and also the film tax credits themselves play can play a huge role within the successful completion and financing of the film, TV, and digital animation projects in Canada.
Being a producer, director or owner of a film, television, or digital animation project linked to Canada you might have noticed the successful financing of your project doesn’t happen magically.! What an understatement that is certainly.
We can’t remember when any our clients made the state that film financing is ‘ easy ‘. The truth is, though, that if you’re searching for a great partner who simply wants to offer you 30-40% of the total production budget we realize a man. A ‘ guy’. Well, certainly not, it’s the us government of Canada, and underneath the proper circumstances who wouldn’t want a partner like this.
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, while we stated, be a significant percentage of your current 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 major boys make use of the strategy also.
That is surprised whenever we claim that the film industry in general features a risk element with it, and when you can eliminate 30-40% of this risk right out from the gate then clearly you might be to a winning strategy. Suffice to say a good 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 is that your project – TV, film and animation doesn’t necessarily have to be a professional success – (naturally it’s nice after it is).
Can film tax credits reduce the overall chance of a project – our clients certainly believe so. Naturally those other components such as marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
Just what exactly do you need to do in order to maximize on the utilization of Kia Jam in Canada. A bunch of good sense helps. You have to be in a position to demonstrate towards the lender that you have a project which can be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the business side of your project must align towards the marketing and technical side of your plans. How is it done, ask clients. It really is performed by surrounding on your own having a proper film tax credit advisor and accountant, who have the knowledge to assist 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, the way you will handle over runs, as well as your timelines. And we remind readers that is related to all aspects in the industry, may it be a film 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 is to demonstrate that budgets and schedules as well as other committed finances will ‘ come together. ‘Generally independent projects combine as time passes, and proceed through a predictable ivakdq of financing, shooting, and then post production and release.
To maintain some kind of financial conservatism around that challenging timeline the business generally needs a completion bond, which is a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This type of financing bond assures your equity, debt and tax credit financier that unforeseen events will be looked after, rather than putting your project at risk.
In conclusion, investigate film tax credit financing in Canada by speaking to a skilled, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and also the financing of your own credits may be accomplished on a when filed or perhaps with an accrual basis, assisting you further in everyday 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.