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

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Financing film , tv and animation tax credits
in Canada


Information on film tax credits in Canada . Film tax incentives are a key strategy to finance tv and movie productions in Canada , including co-productions

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!




7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' 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

Dear Abby - Can I Really Use The Canadian Film Tax Credits (credit ) For 30 - 45% Of My Film Finance Projects ? Signed - 'Anxious

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Use Canadian Film Tax Credits For Your Project Dollars!

Information on Canadian tax credits in the film finance industry and how the effective use of film tax credit utilization and financing can help ensure financial success for your project

Dear Anxious - Look northward - to Canada that is, and you'll find that with all the turbulence in U.S. film finance as it relates to tax credits that the Canadian tax credits as they relate to film televison and digital animation will provide you with a tremendous sense of relief. Often the Canadian tax credits can finance anywhere from 30 - 45% of your entire project (sometimes more) based on proper certification of your credit and a solid finance plan completed by yourself as producer.

Ontario, British Columbia, and Quebec have historically been the dominant geographies for film, TV and animation production in Canada - but tax credits are available in all provinces. On many occasions the geography that is best suited to your project is often the most sensible with respect to that provinces tax credit program.

It comes as now surprise to anyone in the industry that film finance is a journey. The challenge is maximizing the true value of your project via a potential theatrical release, and of course the pre requisite DVD, downloads, and broadcast and international rights. All of those will create your future revenue streams, but unfortunately won’t get you the cash flow you need today.

We’re assuming you are the owner of a Canadian project in our aforementioned genres of movies, TV, and digital media. There are what we can call 4 pillars of financing your project. They are grants, debt, equity, and of course our favorite - the film finance tax credit sponsored by the combination of federal and provincial government.

We're going to have to let you take care of grants, debt, and equity - but, and its good news, the Canadian tax credits on your project can cover anywhere from 30-45% of your project. In many cases even a higher amount is available, which comes into play due to certain factors such as shooting or production being held farther away from major centers such as Toronto, Vancouver, Montreal, etc .

The enhanced tax credits come back to you as a cheque - a true non repayable tax credit. The add on good news is that your film tax credit can be monetized or cash flowed, thereby securing automatically a very large percentage of your budget. The government in Canada supports the program strongly; having determined it’s a major overall economic benefit in employment, tax generation, and culture benefits. Bottom line - it’s a direct cash subsidy to your project.

In order to maximize your film finance utilizing the Canadian tax credits you simply need to ensure you have a proper production budget and finance plan. An experienced entertainment tax accountant will help you maximize the total amount of funds applied for in your credit. You will want to ensure you have valid title to your project, and that you have a properly legal entity set up to capture all the revenue and expenses of your project.

A special point system around any Canadian producers and key personnel will further enhance the total dollars you receive. There is data to suggest that 80% of the films that leave the U.S. for production in other geographies end up in Canada.

Your Canadian special purpose vehicle for your project must be Canadian owned, and pay special attention to the points system for creative positions such as director, screenwriter, etc.

So in summary dear ' Anxious ' you can definitely use Canadian tax credits as a key part of your finance plan. Applications can even be made online these days!

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Click here for 7 PARK AVENUE FINANCIAL

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' 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

Looking for Film Finance? Your Secret Weapon Is The Canadian Film Tax Credit!

We're going to make a quick assumption here, and that's that you are not a movie mogul in an international film studio! But we do think we know who you are - a producer or project owner looking to complete your film finance plan.

We'll also make another educated guess - here goes: You have found out that the Canadian film tax credit system can finance anywhere from 30-45% of your project and that's quite appealing!

Let's examine the basics of the Canadian film tax credit and determine how it can assist you in financing your project. The Canadian government has made it very clear that it is committed to film (by the way we're including television and animation here!) due to the revenue and cultural aspects of the entertainment industry.

So these tax credits can play an integral part in the overall financing part of the plan. But in talking to clients we make it very clear that the onus is still on yourself, and we know its not easy, to complete the rest of your financial plan.That is of course the remaining financing you need that it achieved by arranged equity, debt, pre-sales, etc - in effect completing the finance puzzle.

More often than not the tax credits we look at tend to be in Ontario and B.C., those provinces have historically been viewed as Hollywood North in film finance - but the reality is that if you can shoot or produce your project in some of the other Canadian provinces those tax credits become even more liberal depending on the geography you have chosen.

So how do you successful navigate the Canadian film tax credit maze? We personally don't think its a maze, in fact its quite straight forward, but the reality is that when anyone associates a government program with funding it has a perception of being bureaucratic, slow, etc. That's not necessarily the case with the film tax credit.

Lets ensure you have the basics, and quite frankly you can move to GO and collect 200$ simply by utilizing a core expert team consisting of a Canadian tax credit advisor. Together with your entertainment accountant and lawyer that advisor can fast track you to Canadian film tax credit success.

The process simply involves applying for a Production certificate that ensure your project is eligible based on your spend budget. Non- Canadian producers may even be surprised to know that you can apply on-line through the government portal to get your certificate. This is where having the right ' finance talent ' comes into play, because you want to maximize your credit to achieve the best qualification for the combined federal and provincial credit.

Can the Canadian film tax credit be used to actually finance your film, i.e. real money? Absolutely, positively. Working with a Canadian business financing advisor in this area will allow you to cash flow or monetize your credit. The capital, again, anywhere from 35% ++ of your project can be used to actually complete your production in combination with your other aforementioned sources of financing.

In summary, we are the first to recognize that film finance isn't easy - but when an accredited partner - i.e. the Canadian government! is willing to step in and help you with 30-45%, or more of your entire budget our recommendation is simple - Take the offer.! Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your film finance plan.

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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' 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



Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5823760

Striking Gold With Film Tax Credits

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Finance Ontario and BC Film Production Incentives

Prospecting for gold is probably tough, but we're quite sure prospecting for financing for your film, TV or digital animation projects is tougher. So why not get that ' striking gold ' feeling via Ontario and BC film production incentives and film tax credits.

The film industry in Hollywood North (aka Canada) is alive and very well thank you, and the generosity and relative straightforwardness of Canada's film tax credit system has sure helped in that regard.

There continues to be almost not a day when we don't hear or read about various film tax credit debacles in the U.S. - (The last title we say the other day read as follows " Officials prepare for a battle over whether to scarp 40M a year tax breaks for movie and tv...' ). That story originated out of Connecticut, and we're not pointing fingers at any particular state, its just that Canadian film tax credits for Ontario and BC Film production incentives seems to be a lot more easier and straightforward.. I guess we're biased a bit!

Canadian film tax credits and the financing of those tax credits have been in place for many years now. Each province has a film tax credit (there are 10 provinces in Canada) and the credit is in conjunction with CRA, which is the Canadian equivalent of the IRS in the United States.

As we have noted before Canada maintains that the money, jobs, and resultant tax revenue from the industry more than offset funds granted via tax credit certificates for the three parts of the industry - film, TV, and digital animation. (Actually there are some other credits for music and publishing).

Producers and project owners in both U.S. and Canada that choose to domicile there projects in Canada (i.e. film them here, post produce them here, etc) are in the enviable position of receiving funding for their projects from anywhere, in general.. from 30- 45% of their total budget. Yes, its still up to you as producer to arrange the other 55-70% but don't say you haven't a good start when you receive non repayable funds in the amounts that we have highlighted.

So you've 'struck gold '

with your tax credit certification? Is that all there is? Definitely not, as most producers and project owners choose to finance those credits for valuable cash flow and working capital.

By working with a trusted, credible and experienced Canadian business financing advisor you can get solid assistance in qualifying your claim, determining eligibility, getting your credits certified, and, finally, last but not least, financing these valuable credits for cash flow and working capital for your current or next project. If that isn't ' striking gold... we don't know what is!

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

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


'

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




Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5868630

Financing The Research And Development SR ED Credit : A 360 Degree View Including Film, Tv And Animation Credits

Don’t Worry : It’s Normal To Finance Sr&ed Tax Credits Or Your Film TV And Animation Credits

OVERVIEW – Information on the financing of the SR&ED ( SR ED) Research & Development Tax Credit . SRED and Film credits credits can be financed to help ‘ cash flow’ your expenses and provide valuable working capital





The Research and Development SR&ED tax credit , along with film financing credits can be maximized in another way. That way? You can finance both of these credits for cash flow needs. While not everyone in Canada these days agrees with these two very generous programs, it's safe to say those firms that use them do in fact appreciate them and often also don't recognize they can be financed. Let's dig in.

To be clear, we're talking about 2 specific programs in two VERY different industries - The SRED program in the industrial/tech economy, and the various film, animation, and TV tax credits that are available to the entertainment / Transmedia industry.

Billions is given out in SR&ED each year, and hundreds of millions are provided to the Transmedia industry in Canada.

Let's first focus on the SR ED program. Many clients we deal with have faithfully filed claims every year - while in some cases many feel that a large number of those who qualify haven’t even heard of the program or consider it too time consuming. We can only speak for ourselves, but if the government was handing out those billions of $ to our competition we'd be first to get in line.


One thing that is very common to both the SR ED and media tax credits is who prepares them. In the case of the former it’s a SR&ED consultant. His or her goal is to maximize your claim, which became more of a challenge in the last few years as the govt tightened up the program. When you finance your research and development SR ED credit a certain amount of weight in the approval process is always given to the quality and reputation of the preparer of the claim.



The software industry in Canada is a huge user of SR&ED credits. After all someone has to pay for all that ' bleeding edge development that is begging to be commercialized. In the case of media and film credits its all about utilizing the right program among several that pertain to incentives provided to the industry. It's interesting to note that it is very possible to use a SRED credit for gaming software, again re-enforcing the need for a great SR&ED or Media accountant.

In the case of the media tax credits the above role falls on the tax credit accountant, a specialized and focus individual or firm who maximizes your claim on your budgets based on numerous criteria that must be met and can be exploited for a richer claim. So as un - exciting as it might seem to many , when it comes to preparing, and financing tax credits in Canada ' beancounters ' rule!

An interesting part of the whole tax credit preparation and financing scenario is the fact that your firm (in the case of SRED), or your production (in the case of film, media, animation) does not necessarily have to be profitable or in the case of SR&ED successful. You must have to validate that it was money properly spent under the auspices of the program.


It's all about ' the spend' when it comes to tax credits and maximizing the financing around them. If your financials and budget can validate your research (SR&ED) or your production budget (film) tax credits can be financed in two key ways. For both types of credits it's almost a co incidence that they are financed in the same manner. Claims that you've prepared and filed already are typically financed at the 70-75% level of their full value.

In both cases the financing structure typically used is a ' bridge loan'. The good news here is no payments are typically made by the applicant, and things are ' settled up ' on final approval of the claim by the SRED or film authorities (CRA and your province). At that time a typical claim has you receiving the balance of your claim, i.e. the other 30%, less financing costs.

Because only a very small handful of niche divisions of our banks actually will consider a tax credit financing a large amount of tax credits in both sectors are financing by non bank entities with people and expertise pertaining to each type of credit.

If you’re looking to maximize the full benefit of tax credits in Canada (via financing them!) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.






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 10 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 :


7 Park Avenue Financial = Canadian Tax Credit Financing expertise







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Phone = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

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, 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, 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, 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, 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.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.parkavenuefinancial.com/film_financing_ontario_bc_film_grants_tax_credits.html

Why The Canada Film Tax Credit Program Is Critical To Your Film Financing

How could a government tax credit incentive possibly be ' critical ' to your success in film financing? The answer is very simple : The Canada film tax credit program is usually the last piece of your financing , and we see many cases where it allows the other components of your project, i.e. equity, debt and ' gap ' to come together in a final fashion .

And that of course allows you press the button on ' ready, action, camera, shoot ' which is what your project is all about. And to be clear, we're talking about the three genres of entertainment - film / movies, television, and animation. Animation credits, somewhat unheard of years ago, are quickly gaining traction in the industry as people flock to this type of entertainment. Think Shrek!

Tax incentives in Canada give film investors the ability to complete financing successfully. Pick a number, any number... we'll pick one for you - 30 - 40%! That is a typical amount you can expect to receive on a production tax credit in Canada. The actual final exact amount depends on the provincial geography you are shooting or producing in - as each province has adopted separate schedules of reimbursement .

These tax film financing incentives have once again brought producers and owners of project back to Canada. While in the past a major decision around Canadian content seemed to revolve around the lower priced Canadian dollar the Canadian ' loonie ' ( that's what we call a dollar up here!) is touching parity as we head into 2011- so the whole forex issue is no longer the driver - but Canada film tax credits are .

If you are not a major movie studio the film financing incentive provided to the industry by the production services tax credit has become one of the most important tools in your financing plan for your project .

The Canadian tax credits stimulate of course revenues that are generated from the industry as a whole.

Let's recap some basics, so you can fast track and simplify your film financing project. It all about ' qualifying ' - you either do or you don’t. And if you qualify, you get your funding via a non repayable tax credit. The power of the tax credit increases significantly when you monetize or cash flow or finance (they all mean the same thing!) your tax incentive credit. These credits can be financed when your project is completed, returning cash flow to the owners, or , as importantly , they can be used as a financing strategy to generate cash flow as you film or produce your project and funds are expended .

What qualifies in your project surprises most of our clients on the upside! Including many of the costs of a project you may be surprised on.

We love the expression that the word ' Team ' is an acronym for ' together everyone achieves more". Your team in film fax credit finance and film financing is critical, so aligning yourself with a Canadian tax credit business financing advisor, as well as a qualified entertainment accountant will only do two things - ensure you qualify, and maximize your credits.

And we humbly submit that’s what it is all about.
--

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 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Financing Independent Movies Via Tax Credits For Indie Film financing

A recent article in the Canada’s business paper, the Globe and Mail, may have caught your attention – it read ‘American Actors – Canadian Movies’. That is an appropriate segues into why that title becomes more of a reality every day – and we have the 3 word answer to one of the major reasons that is currently the case. What are those three words? ‘Film tax credits ‘!

Tax credits and tax credit financing has quickly become one of the cornerstones or underpinnings of any indie film financing. We always also point out to clients that these same tax credits are applicable to televison and digital animation projects in Canada also.

Certainly funding for film, TV and digital animation projects has never been more of a challenge. In the U.S. the overall economic landscape still makes it difficult for owners and financiers to generate the type of funding they need on a project.
In a manner of speaking the Canadian available tax credits compete with themselves on a proving by province basis, with Ontario and B.C. being probably the most popular. However when you consider Canada as a whole many U.S. owners or co owners realize that the economic uncertainty they might be facing on projects can be significantly removed via film tax incentives and the financing of those incentives.
The actual tax credits themselves are very clearly defined by organization such as OMDC in Ontario Canada as an example. So there is never any mystery surrounding the qualifications and per cent ages grants within the various tax credits. What actually becomes a challenge, or shall we say, a requirement is the fact that you need to put a solid finance plan and budget in place – Best guess efforts hardly count in film tax credit incentives and their financing. Careful attention is paid to your budgets and finance timelines.

There are numerous arguments in place as to whether the Canadian film, tv and digital animation industry is flourishing because of the growing quality and bench strength of the productions, or has everyone simply jumped on the Canadian tax credit bandwagon similar to how they behaved in the 1970; s and early 1980’s when film financing was in large part accomplished by complex tax shelters that led to what many call a feeding frenzy of B type productions.
The bottom line is that the industry is quite flourishing and we can argue all day about what part tax credit incentives play – but why don’t we simply take advantage of them, including the ability to finance these credits for valuable working capital. Many feel the greater reality is that as an owner outside of the studio system independent film financing has to be assisted by foreign financing to some degree, and maximization of the tax credits available. Independent financing for U.S. films has been a challenge and Canadian producers and owners have focused on the ‘real money ‘that is available in film tax credit financing.

Your strategy in financing your production should be simple and clear - ensure that you qualify and have access to the tax credits available – ensure you can finance them to ensure you have valuable working capital and cash flow, while at the same time retaining more equity ownership in your production since you have monetized your tax credit. Naturally at the same time you have to focus on your other components, such as pre sales and distribution, etc.

Sometimes what might seem as the most boring aspects of film finance, i.e. budgets, budget adherence, and good payroll systems and production accounting are in fact the key elements that will make the eligibility and financeability of your production a success.

Speak to a trusted, credible and experienced film tax credit consultant and advisor on financing your film, TV and digital animation credits for the purposes of working capital and cash flow for your productions.

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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details;
http://www.parkavenuefinancial.com/financing_independent_movies_indie_film_financing.html