No shocker to yourself – film funding does not happen by itself. Film incentives provided by the federal government in Canada and also the film tax credits themselves play can play a huge role within 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 your own 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 when you’re searching for a great partner who simply wants to offer you 30-40% of your own total production budget we know a man. A ‘ guy’. Well, not necessarily, it’s the federal government of Canada, and underneath the proper circumstances who wouldn’t need a partner that way.
The film incentives offered by the federal and provincial government in Canada total within the many million of dollars. These film tax credits can generally, while we stated, be a significant percentage of your overall financing budget and challenge. Typically film funding with this type is done by independent producers rather than major studios, but we’re quite certain the big boys use the strategy also.
That is surprised once we say that the film industry in general features a risk element with it, and when you can eliminate 30-40% of that risk right out of the gate then clearly you happen to be to a winning strategy. Suffice to say an excellent director, cast, and story complement your technique to win!
In film financing, just like 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 have to be a commercial success – (naturally it’s nice when it is).
Can film tax credits decrease the overall probability of a task – our clients certainly believe so. Naturally those other components like marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
What exactly are you looking to do today to maximize on the usage of kjammedia in Canada. A bunch of good sense helps. You need to be capable of demonstrate to the lender which you have a project that may be fully financed (debt – equity-tax credits) and exactly how the timing of those 3 financial components works.
Simply speaking the business side of the project needs to align to the marketing and technical side of the plans. How is this done, ask clients. It is actually carried out by surrounding your self with a proper film tax credit advisor and accountant, who have the experience to help you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the message we convey. You should clearly demonstrate a practical budget, how you will will handle over runs, along with your timelines. And that we remind readers that concerns every aspect in the industry, may 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 work as a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules as well as other committed finances will ‘ combine. ‘Generally independent projects combine over time, and proceed through a predictable ivakdq of financing, shooting, then post production and release.
To maintain some sort 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 regions of committed funds aren’t received. This kind 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.
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 as well as the financing of your credits can be accomplished on both a when filed as well as upon an accrual basis, assisting you further in everyday cashflow on your project. So hopefully you might have seen how using our ‘ guy “(aka government film tax credits) can help you ace your project for financial success.