Canadian productions continue to enjoy increased tax credit benefits in the film, television, and animation industry in Canada. Aside from other financial benefits of ‘Hollywood North ‘the federal and provincial governments in Canada have significantly increased tax credit incentives
Financing these tax credits, either when they are filed and eligible, or, in advance of your filing can add significant cash flow and monetization to your projects in the area of film, televison, and digital media can be the make or break point in your overall financial success in any initial production.
The reality of the current environment in this industry as a part of Canada’s business landscape is very compelling. Filmed productions are increasing, and the Canadian government has very publicly stated and realized that it recognizes the revenue and tax benefits to Canada of this industry. They clearly have stepped up to the bar and show that commitment by increasing in the past year tax credits in almost every major category , and at the same time implanting first time tax credits in other aspects of the industry, i.e. the new digital media and animation sectors . Employment has started to grow again in the industry, and hundreds of projects are on the go.
Key to the financial success of your productions is the ability to monetize, either now, or later the key tax incentives that the Canadian federal and provincial governments have provided.
To highlight these tax credits as aggressive in some ways is almost an understatement. Production and labour credits have been increased – and several nuances have even further added to the mix. As an example, productions outside of major centres such as Toronto can add additional financial backbone to your tax credit. Just changing the locale of some you’re your shootings to outside suburbs and other towns and cities in Ontario (we will use Ontario as an example) simply increase your tax credit refund.
It goes without saying that all the government tax credits in this area have simply assisted the private sector to come back strongly into the picture. In some cases even our famously conservative Canadian banks have stepped up to the plate a created some niche departments within the banks to address film financing.
Let’s focus back in on the financing of our tax credits. Film tax credit financing in Canada is a boutique niche industry and we would recommend that you seek out and utilize the services of a credible and experienced financing partner in this area of business financing in the entertainment industry.
Your Canadian tax credits can be financed as soon as they are filed, that’s simply a strategy of ‘why wait for your cheque? In many instances if you can document a track record in the industry, solid budget and financial records, and certification eligibility then you can be considered for accrual financing. That is a very powerful financing strategy, allowing you to receive fund along the way prior to final tax credit filing. That’s a solid cash flow and working capital strategy for your production.
In summary, the current tax credit environment in Canada is very conducive to tax credit financing assistance. Tax credits can be monetized significantly in advance of your final approvals and cheques from the federal and provincial governments. Productions with strong validation can be financed on an interim accrual basis. Investigate film, televison and animation tax credit financing today.