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Film Tax Credit Financing – Canadian Expertise and Cash Flow Solutions

Guest post by: Stan Prokop

Article Overview: Information on film tax credit financing and unique cash flow and working capital strategies available in eligible Canadian productions

Film Tax Credit Financing – Canadian Expertise and Cash Flow Solutions

Film tax credit financing in Canada is enjoying a mini boom and resurgence due to a number of positive factors. The economy is strengthening and government and industry bodies are both recognizing and capitalizing on the overall benefits to the film, television and animations sectors, which are the prime movers in the industry. (Music and book publishing traditionally rank behind these sectors.

Although the film and entertainment business in general might seem so much more esoteric than, for example, Canada's manufacturing industry, it should not seem surprising that the business faces the same challenges as any other Canadian firm - namely financing via cash flow and working capital and fundamental product success.

What Canadian participants in the industry need to know is that your ability to finance projects via tax credit financing , accrual financing, and other financing strategies can significantly enhances your chances of overall financing success . As most industry participants know you don't necessarily have to have a production hit to ensure you can still capitalize on financing and recovery of costs. (Having the market accepts your movie, show, or product is still very nice though!)

There are a number of late breaking industry changes in the market place that are extremely attractive and are therefore able to assist you in the financing of your projects. As we have noted, it certainly has help when federal and provincial governments have stepped up to the bar and committed millions of dollars of tax credit ability.

Your ability to capitalize on the financing of those credits could be a major factor in the successful completion of your projects. To re- enforce our point on government commitment the there is even intellectual property financing assistance in screen based industries.

The core of successful financing is knowing what is available and then implementing and utilizing innovative strategies around financing.

In any business you have a choice of working with experts, or trying to get financing things done on your own. By utilizing the services of a credible, experience financing advisor in this area you have the ability to broaden your financing possibilities.

When clients as us for tax credit financing assistance they are pleasantly please to hear that that they have the ability to monetize their tax credits into immediate cash flow and working capital. As a producer or other principal you simply might not be aware of the myriad of financing options available, even if it's just the availability of various tax credits.

Many industry players might think their productions go to some sort of tribunal or jury for adjudication - in fact that is not the case. Your main focus in film and related tax credit financing should be as follows:

-Determining which credits you should use Vis Vis cash flow maximization - as an example for certain of the refund credits you have to choose between one and the other

-Getting certification in place

-Financing your certificates ( In numerous instances accrual financing is possible ; so cash flow is then almost instantaneous provided you meet basic criteria

Surrounding yourself with a credible team always helps in any industry. Knowledge of Small nuances in the programs can actually save, and get you thousands of dollars - a good example is the OFTTC credit and your willingness to shoot a production outside the GTA - In effect you are in a position to recover 45% of your funds at that time, with just that one issue being considered and implemented.

Related Articles
  Looking For Canadian Tax Credits For Film Financing?
  Film Tax Credit Financing – Working Capital for Canadian Productions
  The Future Is Now ! Financing Your Film Tax Credit Incentives In Canada Today
  Striking Gold With Film Tax Credits – Finance Ontario and BC Film Production Incentives
  Why The Canada Film Tax Credit Program Is Critical To Your Film Financing
  Film And Animation Project Finance - It’s A Mad Mad World Without The Canadian Film Tax Credits
  Looking for Film Tax Breaks ? - Tax Credit Capital Can Be the Financing You Need
  Why the financing film tax credits provides ‘real’ film tax breaks and film tax incentives to your project
  Use Canadian Film Tax Credit Policy for Successful Financing and of Film , TV , And Animation Projects
  Information on the Film tax credit for Canadian Independent Productions in Film and Television and Digital Animation
  Looking for Film Finance ? Your Secret Weapon Is The Canadian Film Tax Credit !
  Let Canadian Film Tax Credit Financing In Ontario And BC Finance Your Productions!
  Cash Flowing your B.C. and Ontario film grants – Film Financing Canada and Tax Credit Financing
  Are There Canadian film financing banks For My Tax Credits?
  Film Finance via independent film funding and the Canadian Film Tax Credit
  How To Finance Your Film tax credits in Canada - Cash Flow your Incentive Grant Today
  Why You Should Use Canadian Film Tax Credits For Your Film Production Financing
  Can You Afford Not To Use Film Tax Credits When Financing a Film In Canada - An Investor Primer
  Film , Television, and Animation Tax Credit Financing Canada
  It’s 11 O’clock – Do You Know Where Your Canadian Financing & Funding For Production Tax Credits Is? Finance Your Film Tax Incentive Now

Article Tags: Canadian film financingtax credit, Film tax credit financing, film tax credit financing Canada



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