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How To Raise Money For Film Financing via Ontario and BC film grants and Tax Credits
Can your film financing (television and animation also by the way) via Ontario and BC film grants and tax credits be the final piece of your project financing puzzle. We'll let you decide but we can't imagine you not entertaining any financing, that is non repayable,[link widoczny dla zalogowanych], that might cover 30 -45% of your entire project budget.
In order to achieve financing success you need expert help and information on how the tax credit and film financing area works in Canada. Two of the most common regions for film, production, and therefore tax credits are Ontario and BC ( British Columbia ), but not everyone is aware that pretty well every Canadian province, in conjunction with Revenue Canada ( for you Americans that's our version of the IRS! ) has a robust film tax credit program.
Only when you master the techniques and processes around film financing and the use of the generous tax credits will your project be properly financed - That's of course unless you're a major studio, but that's not the clients we're addressing here.
We should note also that once you develop a process,[link widoczny dla zalogowanych], and have a proper team around that typically an entertainment accountant, a lawyer, and a production accountant) then you can pursue and replicate the same process of funding your projects via Ontario and BC film grants and tax credits for all future projects.
The film tax credits in effect ' bridge the gap ' between your vision of the project, its potential financial success, and your ability to fund and complete the project.
Film tax credits and film financing happens of course everywhere in the world. Where Canada excels is the fact that you have generally uniform process for the entire country and the program is well funded and generally very efficiently administered. It's one of the few times in our business careers where the line ' I'm from the government and here to help 'makes actual sense!
Lets use Ontario as a quick example of how to raise the tax credit financing you need. The Ontario program is so efficient these days that the applications for financing are actually done online via the government body that administers and approves the tax credit certificates. However, before you get to that stage, as we noted earlier, you need to be in a position to have a proper budget in place that will reflect what the eligible spend is on the items that are being funded by the tax credit.
As a quick rule of thumb you can generally expect your budget to return approximately 35% of your labour expenditures for a production filmed or produced here in Ontario. The reality is that if you film outside of the Greater Toronto Area formulas are in place that further enhances the credits by an additional 10 per cent.
The additional great news we share with clients is that your tax credits are financeable. That dramatically changes a good deal into a great deal because you can receive loan financing on the tax credit either during production as you spend,[link widoczny dla zalogowanych], or when completed and you have your final certificates in place. Naturally for your film tax credit to be financed you need to have a proper legal entity in place (commonly known as special purpose vehicles - SPV) and your tax returns and filings must be up to date.
Raising money for film financing involves 3 components, equity, debt and mezzanine, and tax credit financing. Let Ontario and BC film grants and tax credits be the final piece of your financing puzzle for your project in film,[link widoczny dla zalogowanych], TV, and animation. Speak to a trusted, credible and experience Canadian business financing advisor in the film tax credit area to ensure you maximize this great finance strategy for your project. Stan Prokop - founder of 7 Park Avenue Financial - http: //www. 7parkavenuefinancial. comOriginating business financing for Canadian companies, specializing in working capital, cash flow, asset based financing. In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations. Info re: Canadian business financing & contact details: http: //www. 7parkavenuefinancial. com/film_financing_ontario_bc_film_grants_tax_credits. html.Topics related articles:
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