No shocker to yourself – film funding does not happen on its own. Film incentives available from the us government in Canada and 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.
As being a producer, director or owner of the film, television, or digital animation project related to Canada you may have noticed the successful financing of your own project doesn’t happen magically.! What an understatement that is.
We can’t remember when any our clients made the state that film financing is ‘ easy ‘. The reality 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 realize a man. A ‘ guy’. Well, not really, it’s the government of Canada, and underneath the proper circumstances who wouldn’t want a partner like that.
The film incentives provided by the federal and provincial government in Canada total in the many million of dollars. These film tax credits can generally, since we stated, become a significant percentage of your current financing budget and challenge. Typically film funding of the 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 say that the film industry overall features a risk element with it, and when you can eliminate 30-40% of the risk right out of the gate then clearly you happen to be onto 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 have to be an industrial success – (naturally it’s nice when it is).
Can film tax credits reduce the overall probability 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.
What exactly do you need to do to maximize on the usage of kjammedia in Canada. A lot of common sense helps. You need to be capable of demonstrate to the lender you have a project that may be fully financed (debt – equity-tax credits) and how the timing of such 3 financial components works.
Simply speaking the business side of your project has to align to the marketing and technical side of your own plans. How is that this done, ask clients. It really is done by surrounding on your own having a proper film tax credit advisor and accountant, who may have the knowledge to assist you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not the content we convey. You have to clearly demonstrate a realistic budget, how you will will handle over runs, as well as your timelines. So we remind readers that has to do with every aspect in the industry, whether it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions to the tax credit film funding in Canada. Your work as being a recipient of film tax credit financing in Canada would be to demonstrate that budgets and schedules and other committed finances will ‘ get together. ‘Generally independent projects get together as time passes, and go through a predictable ivakdq of financing, shooting, then post production and release.
To keep up some type of financial conservatism around that challenging timeline the market generally demands a completion bond, that is 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 is going to be taken care of, as opposed to 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 on an accrual basis, assisting you further in day to day income on your own project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) may help you ace any project for financial success.