Making Moving Pictures ? Tree Barking Wrong Up? Talkies? Cartoons? Canadian Film Tax Credits Do The Job! Let The Movie And Video Production Tax Credit Finance Your Project

Let The Production Tax Credit In Canada Finance A Significant Majority Of Your Budget

Information on Canadian film tax credits. How the production tax credit for video, movie , and animation projects finances a significant portion of any budget


Canadian film tax credits for film, video, TV, and animation. Can the Production Tax Credit solve the mistaken emphasis that producers and project owners sometimes find themselves in as they try to put together the ' money machine' required to finance their project .

Financing television, movies and animation / transmedia projects has certainly changed from the days of our aforementioned ' talkies' and ' cartoons'... that's for sure.

We're pretty sure that the majority of producers and owners of projects worldwide by now have heard that that Canadian film tax credit system seems by far one of the most sought after methods of making a film in the world. Canada's stable economy, sound financial system, as well as its diverse geography make it a solid choice to film or produce your project.

And let's also not forget Canada's diverse geography which lends itself to numerous genres of entertainment. Specifically in the world of animation and transmedia Canada's developers are again ' sought ' by producers all over the world. Bottom line, Hollywood and Vine often quickly becomes Yonge and Dundas for those familiar with Toronto Ontario's major downtown intersection.

So what is the Canadian film production tax credit? We suppose we can't disagree with those that call it a ' government subsidy ' - but for anything form of finance that might cover 30-50% of your entire budget we're not going to quibble over semantics. ‘Show me the Money ' and ' Go Where the money is ‘clearly has project owners flocking to Canada.

Any form of business financing is difficult. Film and animation finance certainly has it's challenges , so if there is a vehicle that finances , on a non payable grant basis a very significant part of your project when it comes to the ' below the line ' portion of your budget.

And our key point today is that tax credit can be financed, or sold, as long as you have a clean chain of title. The technical term for the non payable tax credit is the ' FILM PRODUCTION SERVICES TAX CREDIT '. Although some of Canada’s ten provinces change the formula a bit regarding percentage of allowable credit the bottom line still is that the tax credit is hefty in anyone’s view.

We are often asked how the tax credit is calculated. It's essentially a percentage (as we referred to above) and point system based on the amount of Canadian talent and ' spend' on your project. That amount is best, in fact only determinable by a good entertainment tax account who applies on your behalf for your certification. That’s why over the last ten years well over 2000 projects have been done in Canada under the genres of film, TV, animation, and the new kid on the block, ' Transmedia '.

One Hollywood entertainment critic maintained that the even broader appeal of the Canadian film tax credits was in fact Canada's ' depressed loonie ‘, i.e. the colloquial term for the Canadian dollar . While the dollar was very weak against the U.S. dollar for a long time it now has essentially parity with the U.S. dollar, so that certain eliminates that logic for the present time.

The financing of your production tax credits is a simple process if you've got a solid team in place when it comes to being able to demonstrate you have covered off the additional debt and equity required by any project . Film tax credits can be cash flowed at the end of your project, or during, allowing for solid working capital and cash flow enhancement.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in the preparation and financing of your financeable Canadian film tax credits. You'll find it reduces a lot of stress and won't have you ' tree barking wrong up ' when it comes to putting your project together from a finance perspective.

Call 7 Park Avenue Financial for Film Tax Credit Financing





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canadian_film_tax_credits_video_production_movie.html

Film And Animation Project Finance - It’s A Mad Mad World Without Canadian Film Tax Credits

Finance Your Production tax credits for film, tv and animation in Canada . Here’s why!


Information on Canadian film tax credits. Utilize your film, animation and television tax credit to finance your projects successfully .




Film and Animation finance in Canada. What producer/project owner wouldn’t agree that it's a ' mad world ' when it comes to financing a project. That's exact where Canadian film tax credits enter from stage left - they play a key component in our overall financing strategy. Let's examine that a bit.

It's rarely a perfect world, but when on exists in film financing it’s a case of equity investors making a reasonable (or great?!) return on their original investment, and those mezzanine and gap type folks also achieving a solid return on principal and interest.

Does that always happen? Of course it doesnt. Sometimes things go awry or a final component to the film financing success puzzle is required. Quite often that final component consists of Canadian film tax credits, as well as those same credits that apply to the digital animation world - the newest and probably fastest rising kid on the block .

So how can the film tax credit and the financing of same become the OSCAR of film finance? We’re still waiting for the day when the film industry acknowledges an award for most creative use of a film tax credit - we do know though there are a lot of nominees out there.

When it comes to film and animation (and television) finance in Canada the tax credit is known as a ' soft dollar 'component of your financing package. Canada current has one of the most robust and easily accessible film/animation tax credits environments in the world, and is widely recognized for that.

Simply speaking anywhere from 30-50% of your overall budget can in fact be recovered by the tax credit. And the financing of those tax credits can play a starring role in your project. Why? Because they can cash flow the actual project itself, they can play a key role in the return on equity in your project, and finally, those dollars could in fact be used to help bankroll your next project. Talk about a triple whammy.

So how in fact to tax credits accomplish those key goals for the producer.? It's not as complicated as you think, they are not refundable government monies that come from the government jurisdictions that you chose to film, produce, and post produce in. When your tax credit certificate is accepted based on your budget and spend criteria that credit becomes cash for your project - and it can be monetized as you spend or at the end of the project.

So you can choose to simply wait to get your cheque from the government (it’s a combined federal and provincial amount) after your ' spend ' is verified and audited.

In the U.S. and elsewhere it’s a battlefield out there when it comes to ongoing availability of tax credit film incentives. However, in Canada there's a sense of ‘ business as usual ' normalcy when it comes to film tax credits for movies, TV, and animation projects .

Want to examine next steps ?Its all about discussing your overall financing plan and budget with a Canadian film tax financing expert in conjunction with your tax credit budget which is usually prepared by a qualified film tax credit accountant , thereby maximizing your return in any one of the Canadian provinces .

So yes, its a ' mad world ' when it comes to film finance - use your Canadian film tax credits to assist you in your overall plan of equity, debt, print and advertising, and gap financing . You just might find the Oscar goes to film tax credits for best supporting role. Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to film finance.

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 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 re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canadian_film_tax_credits_finance_animation.html

Why You Should Use Canadian Film Tax Credits For Your Film Production Financing

Don’t consider using Canadian film tax credits for film production if your film production has all the financing you need and your current projects are totally financed and will achieve a solid return on investment for your project.

Unfortunately, we haven’t met one producer or project owner in film, television and animation that seems to have all the funding they need and in place! We've heard they exist, I guess we just haven’t met them.

The Canadian government, and more often than not Ontario, British Columbia and the Maritimes are totally focused on providing you with non repayable funding for your projects in the genres of film, TV and the growing genre of animated features. They are offering, so what aren’t you taking?!

We are pretty sure the Canadian film tax credits have the same goal as in other parts of the world, namely stimulation of investment and employment.

If your film production (we will use that term interchangeably with tv/animation) requires additional funding (which project doesn’t) the provincial film funds can provide you with anywhere from 30 - 45% of your entire budget. And by the way , that’s not a loan , that’s tax credits that are certified and come back to you as the project owner in the form of a cheque - In Hollywood terms the government wants to ' show you the money ' !

We are often asked why Canadian film tax credits vary when we meet with clients and discuss broad ranges of per cent age funding of your project. It all comes down to a few simple issues around which of the 6 available tax credits you use (we recommend you use the one that will give you the most funds by the way!) and where your project is originated re shooting, production, development, post development, etc .

We encourage clients to seek an advisor who is trusted, credible and experiences in Canadian film tax credits for film production. That allows you to maximize your funding, ensure you are eligible, and, as we have said, allow you to 'max out ', so to speak, on the credits that are applicable to your particular project.

What you need to do is ensure your project qualifies and that you are aware of application, filing and other regulations that come into play that allow you to receive funds.

And oh yes, by the way. You could wait 3, 6, or even 12 months for your funds, but we recommend all clients assess the financeability of your credits before you receive the cheque. Financing your Canadian film tax credits allows you to monetize that future credit into a bridge loan, collateralized by the credit, and provides you with cash flow and working capital for your current production.

Financing your film production via the monetization of your tax credits involves just a few basics - ensuring you have your other debt and equity in place, validating your credit and budgets as eligible, and ensuring your financial filings are up to date.

Speak to a trusted expert in Canadian film financing to achieve additional funding for your projects - maximize on that film tax credit, and consider borrowing against it for funding you need now. Fade to credits!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating 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/canadian_film_tax_credits_film_production.html