No shocker to yourself – film funding does not happen by itself. Film incentives offered by the 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 a film, television, or digital animation project linked to Canada you could have noticed the successful financing of the project doesn’t happen magically.! What an understatement which is.
We can’t remember when any our clients made the declare that film financing is ‘ easy ‘. The truth is, though, that if you’re looking for a great partner who simply wants to provide you with 30-40% of the total production budget we know a man. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and beneath the proper circumstances who wouldn’t want a partner that way.
The film incentives provided by the federal and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, since we stated, become a significant portion of your overall financing budget and challenge. Typically film funding with this type is carried out by independent producers rather than major studios, but we’re quite certain the big boys utilize the strategy also.
Who may be surprised once we claim that the film industry in general features a risk element into it, and when you can eliminate 30-40% of this risk right out from the gate then clearly you are on to a winning strategy. Suffice to say a great director, cast, and story complement your strategy to win!
In film financing, just like 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 an industrial success – (naturally it’s nice after it is).
Can film tax credits reduce the overall chance 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 consumption of Kia Jam in Canada. A bunch of sound judgment helps. You have to be capable of demonstrate towards the lender that you have a project 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 your own plans. How is this done, ask clients. It is carried out by surrounding your self using a proper film tax credit advisor and accountant, that have the experience to guide you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not your message we convey. You should clearly demonstrate a realistic budget, how you will will handle over runs, and your timelines. And that we remind readers that is related to all facets from the industry, may it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions for the tax credit film funding in Canada. Your work as being a person receiving film tax credit financing in Canada is always to demonstrate that budgets and schedules as well as other committed finances will ‘ come together. ‘Generally independent projects come together over time, and undergo a predictable ivakdq of financing, shooting, and then post production and release.
To keep up some kind of financial conservatism around that challenging timeline the industry generally needs a completion bond, which is actually a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This kind of financing bond assures your equity, debt and tax credit financier that unforeseen events will likely be looked after, rather than putting any project at risk.
In conclusion, investigate film tax credit financing in Canada by talking to a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and the financing of your own credits can be achieved for both a when filed as well as upon an accrual basis, assisting you further in day to day cashflow on the project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) can help you ace any project for financial success.