Why The Canada Film Tax Credit Program Is Crucial For Your Film Financing

How could a government tax credit incentive often be ‘critical’ for your success in film financing? The reply is quite simple: The Canada film tax credit program is often the last bit of your financing, so we see most cases where it enables another aspects of any project, i.e. equity, debt and ‘gap’ to get together inside a final fashion.

Which obviously enables you press the button on ‘ ready, action, camera, shoot ‘ that is what any project is about. And also to be obvious, we are speaking concerning the three genres of entertainment – film / movies, television, and animation. Animation credits, somewhat uncommon years back, are rapidly gaining traction in the market as people flock to this kind of entertainment. Think Shrek!

Tax incentives in Canada give film investors the opportunity to complete financing effectively. Choose a number, a variety… we’ll pick choice for you – thirty to fortyPercent! That’s a typical amount you will probably receive on the production tax credit in Canada. The particular final exact amount depends upon the provincial geography you’re shooting or producing in – as each province has adopted separate schedules of reimbursement.

These tax film financing incentives have once more introduced producers and proprietors of project to Canada. Whilst in the past a significant decision around Canadian content appeared to center around the low priced Canadian dollar the Canadian ‘ loonie ‘ (that is what we call $ 1 up here!) is touching parity once we mind into 2011- therefore the whole foreign exchange issue is not the motive force – but Canada film tax credits are.

If you’re not a significant movie studio the show financing incentive presented to the through the production services tax credit is becoming probably the most important tools inside your financing arrange for any project.

The Canadian tax credits stimulate obviously revenues which are produced by the in general.

Let us recap some basics, so that you can steps for success and simplify your film financing project. Everything about ‘ qualifying ‘ – you can either do or else you don’t. And when you qualify, you receive your funding using a non repayable tax credit. The strength of the tax credit increases considerably whenever you monetize or income or finance (all of them mean exactly the same factor!) your tax incentive credit. These credits could be financed whenever your project is finished, coming back income towards the proprietors, or, as importantly, they can be used a financing technique to generate income while you film or produce any project and money are expended.

What qualifies inside your project surprises the majority of our clients around the upside! Including most of the costs of the project you might be surprised on.

We like the expression the word ‘ Team ‘ is short for for ‘ together everybody achieves more”. Your team in film fax credit finance and movie financing is crucial, so aligning yourself having a Canadian tax credit business financing consultant, in addition to a qualified entertainment accountant is only going to do a couple of things – make sure you qualify, and increase your credits.

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