No shocker to yourself – film funding doesn’t happen by itself. Film incentives offered by the us government in Canada as well as the film tax credits themselves play can play a vital 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 associated with 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 one of our clients made the declare that film financing is ‘ easy ‘. The reality is, though, that in case you’re trying to find a great partner who simply wants to present you with 30-40% of your own total production budget we understand a guy. A ‘ guy’. Well, not really, it’s the us 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 inside the many million of dollars. These film tax credits can generally, since we stated, be a significant percentage of your general financing budget and challenge. Typically film funding with this type is done by independent producers as opposed to major studios, but we’re quite certain the large boys use the strategy also.
That is surprised once we say that the film industry as a whole features a risk element with it, and when you are able eliminate 30-40% of the risk right from the gate then clearly you happen to be on to a winning strategy. Suffice to state a great director, cast, and story complement your strategy 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 must be an industrial success – (naturally it’s nice after it is).
Can film tax credits lessen the overall probability 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 complete your finance plan.
Just what exactly must you do to maximize on the utilization of kjammedia in Canada. A lot of sound judgment helps. You should be able to demonstrate towards the lender you have a task which can be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the organization side of your project has to align to the marketing and technical side of your own plans. How is this done, ask clients. It is actually performed by surrounding yourself using a proper film tax credit advisor and accountant, that have the knowledge to help 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, along with your timelines. So we remind readers that has to do with every aspect of the industry, whether it be a movie or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that 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 is to demonstrate that budgets and schedules along with other committed finances will ‘ come together. ‘Generally independent projects get together as time passes, and undergo a predictable ivakdq of financing, shooting, and after that post production and release.
To keep some type of financial conservatism around that challenging timeline the industry generally demands a completion bond, that 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 will be looked after, as opposed to putting your 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 and the financing of your own credits can be accomplished on both a when filed or perhaps upon an accrual basis, assisting you further in daily cashflow on your project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.