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How To Finance Your Film tax credits in Canada - Cash Flow your Incentive Grant Today

Guest post by: Stan Prokop

Article Overview: Financing film , tv and animation tax credits in Canada

How To Finance Your Film tax credits in Canada - Cash Flow your Incentive Grant Today

Many producers, directors and owners of Canadian projects in film, television and digital animation are not aware of their potential capability to finance film tax credits and monetize those tax incentives into real cash flow, working capital, while enhancing return on equity for their projects.

Let's examine how these credits work, who they are available to, and why Canadians and foreign owners of projects should consider the monetization of these valuable non repayable film tax incentives. Although we traditionally talk to clients around ' film ' you should never forget that both television and animation in Canada is eligible for these same incentives.

In essence you are simply taking advantage of the Canadian federal and provincial governments desire to in effect ' subsidize' the cost of your productions. If they're offering, why aren't you taking?!

In essence its basically about geography and content -as the two levels of Canadian government are focused on attracting employment and foreign capital to Canada - it is their belief ( and why would we even question it ) that these productions advertise Canada, bring capital spending to Canada and, probably most importantly, stimulate employment - thereby generating tax revenue . But enough of our economics lecture - let's get down to real world basics on film tax incentives and film tax credit financing in Canada.

Owners of productions are eligible for pure non repayable grants under approximately 6 different programs based on the four genres of film, tv, animation, and the sometimes forgotten ' music' industry .

The grants, as we mentioned are non repayable, and very generous, often approximating 30 - 40% of your production budgets in various categories. We tell clients it is essential to tie yourself to a solid entertainment accountant who focus and expertise will allow you to craft a budget that maximizes the most eligibility of your expenses. Certain categories of expenses are known as ' qualifying 'and the include labor and actual non labour expenses. The government issues guidelines on these budgets and what qualified - you can spend 1 , 5 or ten hours looking through government literature, or, alternatively, do as we recommend, speak to a trusted, credible and experiences film tax financing consultant who can guide you through the whole process of film tax credit financing in Canada .

Film tax incentive financing can be accomplished when you have received your final approval and certificates - for example, if you are shooting or filming in Ontario you would file under what is known as the OPSTC -- The Ontario Production Services Tax Credit.

So you have filed your claim, and completed your production. Next item on the agenda - waiting! Care not to wait - then finance you claim, which essentially is the financing and discounting of your claim with the claim as the key collateral. Want an even more supercharged solution - finance your claim while you are in production and receive cash flow and working capital to enhance the overall financing plan.

Film tax credit financing in Canada - its available, its generous, use it, and, if you need to, finance your claims!

Related Articles
  Why You Need Film Tax Credits and Why the Canada Film Tax Credit System Works For Your Project
  Why The Canada Film Tax Credit Program Is Critical To Your Film Financing
  How Film Financiers Can Monetize and Cash Flow Your Film tax incentive
  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
  Using Film Tax Incentives For Television, Animation and Film Finance in Canada
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  Looking For Canadian Tax Credits For Film Financing?
  Why Canada Provides Film Production Tax Credits & SRED Tax Credits – Financing Film & SR ED Tax Credits
  Independent Film and Movie Financing Via Tax Credits in Canada
  Why the financing film tax credits provides ‘real’ film tax breaks and film tax incentives to your project
  Leverage Canadian tax credits for film finance success via film tax credit financing
  What If … You Could Cash Flow and Monetize your Canadian Film Tax Credit Today ?!
  Film Tax Credits Canada – Creative Finance That Is Real And Works!
  Are There Canadian film financing banks For My Tax Credits?
  Can You Afford Not To Use Film Tax Credits When Financing a Film In Canada - An Investor Primer

Article Tags: film tax credits Canada, film tax incentives, film tv, tax credits



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