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Push Buttom Film Tv & Animation Loans For Refundable Tax Credits
Information on Canadian film tax credit financing . Refundable tax credits finance solutions are a key part of your overall strategy to successfully complete projects in movies , television and animation/transmedia. Welcome to HOLLYWOOD North finance
Canadian film tax credit financing . Clearly there is no secret path to financing a film, TV or animation project anywhere... Canada included... Ontario... BC... where ever. But one sure fire method of successfully completing a project is in fact your ability to monetize the tax credit.
Refundable tax credit programs in Canada revolve around 2 solid offerings from the Canadian government . In addition to film/tv/animation and transmedia tax credits there is also the SR&ED program which is a refund on research and development by privately owned Canadian companies. While we're focusing here on ' film ' it's important for entreprenuers, owners and financial managers to know that billions of dollars are also available under the SR ED program annually,
With respect from some of the sagas' and stories we hear the financing of projects in any of the above mentioned genres they could well qualify for a script of their own!
Producers and owners of successful projects already know that there are some key elements to the financing of any project. In a way they are not dissimilar to the financing of any business...your owner equity. Debt of some form, and in our case also, the monetization of a tax credit.
Financing of entertainment projects in our 3 genres could not be any ' hotter ‘than in the current Canadian timeframe of 2016 .
If properly structured and qualified your Canadian film tax credit financing in provinces such as Ontario, BC (British Columbia) and Quebec and cover anywhere from 30-50 per cent of your entire project budget. When revenue, distribution, pre-sales and other targets are a challenge the tax credit, when properly submitted and eligible becomes pretty well the more straightforward method of financing projects.
Tax credits are often referred to as ' soft dollars'. The one thing we've always found interesting about tax credit finance is that they don't really rely on the overall success of the project from a public acceptance point of view. When applying for and financing the film/TV/animation tax credit it’s very simply about meeting the technical criteria of the credit program itself.
It's therefore all about ' the spend' and the quality of the spend. And once you've qualified you then are in a position to monetize the tax credit - it becomes the collateral for extra cash flow. While in most cases that cash flow and working capital helps you on the current project it could of course be used for your next (hopefully successful!) production.
Tax credits are typically financed at a ' discount ' and a general norm might be in the 70% range - of course this varies per quality of the project and the experience and stability of the ownership team.
For successful eligibility and financing of Canadian film tax credit financing you require the services of a qualified tax credit accountant; that being a bit of a niche area of accounting. And with respect to the financing you need to be able to demonstrate that the credit can properly be assigned and that there are clear chains of title around your project.
Do you have to finance your film, TV and animation / transmedia tax credits? Absolutely, positively not. You can simply use the non repayable funds for any general corporate purpose. But if you, as a producer are challenged by successful project financing then the ONTARIO, BC AND QUEBEC tax credits can be a solid part of your overall financing plan. Those three provinces dominate the Canadian landscape when it comes to film tax credits . The more common nickname - Hollywood North!
Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success today on how you can successfully obtain.. and if you choose monetize and cash flow film refundable tax credits.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
' Canadian Business Financing with the intelligent use of experience '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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