No shocker to yourself – film funding does not happen itself. Film incentives offered by the government in Canada and also 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.
Being a producer, director or owner of the film, television, or digital animation project linked 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 one of our clients made the state that film financing is ‘ easy ‘. The fact is, though, that if you’re looking for a great partner who simply wants to provide you with 30-40% of your own total production budget we know a man. A ‘ guy’. Well, not necessarily, it’s the us government of Canada, and under 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 considered a significant percentage of your general financing budget and challenge. Typically film funding of the type is carried out by independent producers instead of major studios, but we’re quite certain the large boys use the strategy also.
Who is surprised when we state that the film industry overall has a risk element with it, and when you are able eliminate 30-40% of that risk right out from the gate then clearly you are on to a winning strategy. Suffice to state a great director, cast, and story complement your tactic to win!
In film financing, as 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 need to be a professional success – (naturally it’s nice after it is).
Can film tax credits lessen the overall risk of a project – 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.
So what do you need to do in order to maximize on the usage of kjammedia in Canada. A lot of good sense helps. You have to be capable of demonstrate to the lender which you have a project that may be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the organization side of the project needs to align to the marketing and technical side of your plans. How is it done, ask clients. It really is performed by surrounding yourself with a proper film tax credit advisor and accountant, who have the experience to assist you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s definitely not the content we convey. You should clearly demonstrate a practical budget, how you will will handle over runs, as well as your timelines. And we remind readers that is related to all aspects from the industry, whether it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions for the tax credit film funding in Canada. Your work as a person receiving film tax credit financing in Canada is to demonstrate that budgets and schedules along with other committed finances will ‘ get together. ‘Generally independent projects get together over time, and proceed through a predictable ivakdq of financing, shooting, and then post production and release.
To keep some sort of financial conservatism around that challenging timeline the industry generally demands a completion bond, which is actually a financial instrument that insures the project if difficulties areas of committed funds aren’t received. This sort of financing bond assures your equity, debt and tax credit financier that unforeseen events will be cared for, as opposed to putting any project in danger.
In summary, investigate film tax credit financing in Canada by talking with an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of your credits may be accomplished on both a when filed or even on 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.