No shocker to yourself – film funding doesn’t happen on its own. Film incentives available from the government in Canada and also the film tax credits themselves play can play a crucial role in the successful completion and financing of the film, TV, and digital animation projects in Canada.
As being a producer, director or owner of the film, television, or digital animation project related to Canada you could 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 fact is, though, that if 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 really, it’s the government of Canada, and under the proper circumstances who wouldn’t want a partner like that.
The film incentives supplied by the government and provincial government in Canada total within the many million of dollars. These film tax credits can generally, since we stated, be a significant portion of your overall financing budget and challenge. Typically film funding of this type is carried out by independent producers as opposed to major studios, but we’re quite certain the major boys utilize the strategy also.
That is surprised once we claim that the film industry in general includes a risk element into it, and when you can eliminate 30-40% of the risk right from the gate then clearly you happen to be on to a winning strategy. Suffice to say a great 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 that the project – TV, film and animation doesn’t necessarily must be a professional success – (naturally it’s nice when it is).
Can film tax credits decrease the overall probability of a project – our clients certainly believe so. Naturally those other components like marketing, additional debt and equity financing, and pre sales and distribution round out your finance plan.
So what must you do to maximize on the utilization of prnewswire.com in Canada. A lot of common sense helps. You should be in a position to demonstrate for the lender that you have a project that can be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the company side of your project has to align for the marketing and technical side of the plans. How is that this done, ask clients. It is done by surrounding on your own with a proper film tax credit advisor and accountant, who may have the experience to help you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s 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 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 may have committed millions to the tax credit film funding in Canada. Your work as a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules and other committed finances will ‘ get together. ‘Generally independent projects come together as time passes, and go through a predictable ivakdq of financing, shooting, and then post production and release.
To maintain some type of financial conservatism around that challenging timeline the market generally demands a completion bond, which is a financial instrument that insures the project if difficulties parts of committed funds aren’t received. This sort of financing bond assures your equity, debt and tax credit financier that unforeseen events is going to be cared for, instead of putting any project in jeopardy.
In conclusion, investigate film tax credit financing in Canada by talking to an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding and the financing of your credits can be achieved on a when filed or perhaps with an accrual basis, assisting you further in daily income on your own project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) can help you ace your project for financial success.