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

The Real Truth On Canadian Film Tax Credit – Let Movie & Animation Financing Refund Loans Enhance Your Project

You already have the financing in place that it takes to make a winning film, animation, and TV project successful - you just might not know it.

We're talking about the Canadian film tax credit system, and why movie and animation refund financing of your tax credit can be the last piece of the puzzle in your Canadian production, or U.S./Canadian co -production.

The reality is, and of course we're sorry (kind of ...) that more and more U.S. regions are eliminating or downsizing the film and animation tax credits that can often make or break your projects final success. In fact, using Hollywood California as an example, as at June 2011 the state has in fact used up all their tax credits for the remainder of the year! No wonder why U.S. and of course Canadian producers and owners realize the Canadian system is still committed to job creation and support of the industry.

Ours has never been to debate the merits of the Canadian film tax credit (animation and TV included of course)... Ours has been to promote it and ensure our clients are using it. In Canada , aka Hollywood North the tax credits are viewed in all provinces as great economic and tourism development, and, as we said , we're not arguing!

In Canada the film, TV, movie and animation credits can generally get up to 40% of your project financed. That of course leaves the other 60% up to you, but what a great head start!

Although most producers and owners think of the Canadian film tax credit in terms of movies/ film etc. the Digital media area is probably growing the quickest. 6 of Canada's ten provinces already have a separate special digital media tax credit in place.

B.C. has a very strong and growing animation environment (could that be because of its proximity to California?!) and provides 17 1/2% credit to your total labour cost on any project.

While most U.S. and Canadian producers always tend to think in terms of Toronto, Montreal and Vancouver as major film and production and animation centres the reality is currently that the most lucrative digital tax credit is out of Nova Scotia. They have a very simple formula, 50% of expenditures that qualify under the legislation, or 25% of your total budget. Your tax credit accountant and Canadian business financing advisor can assist you in maximizing what works best for your project.

Quebec also increased and broadened its tax credits, with 25% of all expenditures qualifying for a Canadian film tax credit refund. When you compliment this with the federal Productions Services tax credit an additional 16% of financing becomes available.

Naturally there are all sorts of nuances in maximizing and qualifying for your tax credits. Producers should in general always set up a special purpose entity and typically should own the copyright or content.

Your tax credits in Canada can be financed, either through traditional sources, or independent firms specializing in this type of financing, also at the same time usually helping you maximize the credits. Financing is available on a ‘when completed ' basis, or, often more desirable, on an accrual basis as you start to spend on your project. Bottom line: Cash flow and working capital for your project.

So, as we said your challenge is equity, debt, gap pre -sales, etc. But let tax credits be the final component to your projects success.

If you choose you could creatively carve out the tax credit from your overall finance plan and enhance the equity position, of simply finance the credit refund on its own. Use your tax credit to either attract an investor, or as a stand alone component.

When you want the real truth and current dynamics of the Canadian film tax credit and refinancing strategies speak to a trusted, credible and experienced Canadian business financing advisor.

P.S. Mr. Demille - we're ready for our (tax credit) close up!

Overcoming Canadian Movie & Digital Media Finance Challenges – Let Film Tax Credit Financing Be the Final Piece of the Puzzle!

Use Canadian Tax Credits For Film, Tv and Digital Media to Maximize Production ( or co-production ) Success


Information on film tax credit financing in Canada and how the monetization of your movie television, or digital media tax credit can enhance your production finance strategy .



Looking for one of the biggest understatements in town? How's this ... Financing movie, television and digital media productions is a challenge. Can you beat that one?!

Rather than talk about the challenges, clients tell us they want solutions! No surprise there. So let’s talk about one of the most obvious solutions - utilizing film tax credits for your projects in movies, TV and digital media.

Canada continue to be the beneficiary of what many industry pundits call ' Runaway ‘productions ... simply speaking ... they are shown all over the world but made and financed here in Canada for some great reasons.

Film tax credits reduce the cost of your project. It's as simple as that. Call it a government subsidy, call it a non repayable grant, but call it! There are a number of factors that make Canada a great place to product and finance your production - our focus today is the film tax credit but clearly things like foreign exchange, our geography, skilled media labour... etc all fall into place with respect to Canada's current success .

It’s quite obvious that film tax credit financing in movie, TV and digital media has played a large part in the growth of the industry, aka ' Hollywood North. In the real Hollywood, aka California there is even a movement afoot to abolish film tax credit s.

So why are these tax credits available? Simply because the combined federal and provincial government authorities have made a long term commitment to the industry... they might call it strategic... we're just grateful.

Film tax credits are available in 9 out of the ten Canadian provinces. New Brunswick, one of Canada's ten provinces is phasing out the credit.

Unlike the U.S. the Canadian structure and types of credits do not vary significantly... they vary somewhat but we wont quibble about a few per cent here and there. The bottom line is that the Canadian film tax credit is non repayable, and generous.

In British Columbia alone the film TV and digital media industry is a solid 1 Billion dollars of the gross provincial economy. Naturally the better known centres of production in Canada are Vancouver, Toronto, and Montreal. Using Vancouver as an example the B.C. tax credits reimburse over 35% of your labour cost. Productions that qualify for Can Con (Canadian content) receive 25% of labour costs from the federal portion of the tax credit. Over 200 Millions dollars has been awarded in recent times.

Ontario as an example has a 20% computer animation and special effects tax credit and a 40% interactive digital media credit.

We hate to be called ' game players ' but guess what, digital media tax credit financing is growing, and quickly. The industry is predicted to grow 20% a year for the next few years! Canada is the third largest digital media and game producer of talent in the industry. Financing of the Digital Media Tax Credit is a key factor in the growth of the industry.

The maximum tax credit for film and TV in Quebec is 65%!

One key element of the industry that is growing rapidly is the digital animation and special effects via interactive digital media content.

Another noteworthy trend is that European and Canadian co productions are growing. Many U.S. and European producers find funding in Canada to round out the financing of their projects.

As independent film productions continue to grow... in budget size! it of course makes more sense to use the generous Canadian film tax credits. England, France and Germany have long had co production treaties with Canada. Producers are well encourage to further investigate co production treaties in place, allowing them to access valuable an solid Canadian funding for their project via the film tax credit .


Bottom line; consider both investigating and financing your film tax credit and digital media credits. Financing can be achieved via a financing of your approved credit, or in many cases an accrual type of financing can be utilized to accelerate the cash flow during production of your project. And in our experience that tax credit financing enhances your ability to complete the debt and equity portions of your project. Speak to a trusted, credible and experienced Canadian business financing advisor for tax credit finance assistance... today!




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/film_tax_credit_financing_movie_digital_media.html

The Real Truth On Canadian Film Tax Credit – Let Movie & Animation Financing Refund Loans Enhance Your Project

You already have the financing in place that it takes to make a winning film, animation, and TV project successful - you just might not know it.

We're talking about the Canadian film tax credit system, and why movie and animation refund financing of your tax credit can be the last piece of the puzzle in your Canadian production, or U.S./Canadian co -production.

The reality is, and of course we're sorry (kind of ...) that more and more U.S. regions are eliminating or downsizing the film and animation tax credits that can often make or break your projects final success. In fact, using Hollywood California as an example, as at June 2011 the state has in fact used up all their tax credits for the remainder of the year! No wonder why U.S. and of course Canadian producers and owners realize the Canadian system is still committed to job creation and support of the industry.

Ours has never been to debate the merits of the Canadian film tax credit (animation and TV included of course)... Ours has been to promote it and ensure our clients are using it. In Canada , aka Hollywood North the tax credits are viewed in all provinces as great economic and tourism development, and, as we said , we're not arguing!

In Canada the film, TV, movie and animation credits can generally get up to 40% of your project financed. That of course leaves the other 60% up to you, but what a great head start!

Although most producers and owners think of the Canadian film tax credit in terms of movies/ film etc. the Digital media area is probably growing the quickest. 6 of Canada's ten provinces already have a separate special digital media tax credit in place.

B.C. has a very strong and growing animation environment (could that be because of its proximity to California?!) and provides 17 1/2% credit to your total labour cost on any project.

While most U.S. and Canadian producers always tend to think in terms of Toronto, Montreal and Vancouver as major film and production and animation centres the reality is currently that the most lucrative digital tax credit is out of Nova Scotia. They have a very simple formula, 50% of expenditures that qualify under the legislation, or 25% of your total budget. Your tax credit accountant and Canadian business financing advisor can assist you in maximizing what works best for your project.

Quebec also increased and broadened its tax credits, with 25% of all expenditures qualifying for a Canadian film tax credit refund. When you compliment this with the federal Productions Services tax credit an additional 16% of financing becomes available.

Naturally there are all sorts of nuances in maximizing and qualifying for your tax credits. Producers should in general always set up a special purpose entity and typically should own the copyright or content.

Your tax credits in Canada can be financed, either through traditional sources, or independent firms specializing in this type of financing, also at the same time usually helping you maximize the credits. Financing is available on a ‘when completed ' basis, or, often more desirable, on an accrual basis as you start to spend on your project. Bottom line: Cash flow and working capital for your project.

So, as we said your challenge is equity, debt, gap pre -sales, etc. But let tax credits be the final component to your projects success.

If you choose you could creatively carve out the tax credit from your overall finance plan and enhance the equity position, of simply finance the credit refund on its own. Use your tax credit to either attract an investor, or as a stand alone component.

When you want the real truth and current dynamics of the Canadian film tax credit and refinancing strategies speak to a trusted, credible and experienced Canadian business financing advisor.

P.S. Mr. Demille - we're ready for our (tax credit) close up!





Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.comOriginating 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 .Info re: Canadian business financing & contact details :

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