Canadian Film Tax Credit Financing In Ontario & BC

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It's no mystery to us, that’s for sure. Canadian and U.S. content owners and producers are taking the 'flight to safety', using Canadian film tax credit financing for Ontario, BC, and quite frankly all Canadian geographies for their financing needs.

Why that flight to safety? Why is Canada so under consideration these days when it comes to the film tax credit? (Film, television and digital animation) Well, just this week we caught three separate headlines out of U.S. states such as Michigan hinting strongly that tax credits will be pulled back, repealed, diminished, etc. Bottom line, less!

That certainly isn't the case in Canada, where a proper filing and certification of your claim (that is key) can net you anywhere for 30- 45% of your total production budget expenses. Help us understand, but isn’t that amount of assistance very valuable in allowing you to obtain the balance of your financing, through debt, equity, pre-sales, product exposure, distribution, etc.

The tax credit, furthermore, can be cash flowed to help monetize your project for working capital and cash flow as you go through your production spend.

Canada, similar to other geographies such as Australia, firmly seems to believe the payback in revenues, taxes, and general economic activity justifies the investments being made in your project.

Co-productions, when they qualify are eligible for the same sort of financing and assist you in attracting and finalizing the additional finance you need to complete your project.

When you finance the tax credit naturally the credit itself is the collateral for the loan - it’s in effect a bridge loan to get you the funding you need now or at the completion of your project. You do have the choice to simply wait for your non-repayable cheque, but most independent producers prefer the pay me now to pay me later approach!

From a structuring viewpoint, the tax credits sit kind of in the middle of your equity and senior financing, although if you borrow against the credit it must be collateralized properly.

So how does payment work on a Canadian film tax credit financing for your Ontario and BC productions? Payments are great - Generally, there are none! That is to say that your advance on the tax credit - typically anywhere from 50-70% (sometimes more) is simply netted against your final cheque from the government, less the financing costs. Almost always, no additional collateral is required, although the promise to pay of your Special Purpose Vehicle for the project is of course required.

Use Canadian film tax credit financing to enhance your overall profit potential on your project - don't give up additional equity or future profits you don't need to. Speak to a trusted, credible and experienced Canadian business financing advisor who can steer you through the film tax credit funding process, quickly, efficiently, adding profit potential to your venture.

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' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil

Canadian Film Tax Credit Financing Ontario BC 7 Park Avenue Financial

canadian film tax credit financing bc ontario