Film Tax Credit Financing in Canada

Film Tax Credit Financing in Canada

Film tax credit financing in Canada can be a unique and specialized type of financing. While the majority of the bigger film, TV, and digital media firms in Canada learn about and so are utilizing this type of financing, a lot more compact and independent firms commonly are not aware the financial lending can be obtained, otherwise know you’ll find substantial tax credits, but were not conscious that they will be earning money into immediate earnings for either project completion, or possibly moving to the next project.

All of this activity originates from federal and provincial legislation that was recently amended to enhance tax credits to Canadian firms inside the three aforementioned industries:



Digital Media – i.e. Animation, etc

Every one of these program clearly boost Canadian content that really help promote Canadas status on the market, as well as the government, in the government and provincial level seems really comfortable these tax credits and incentives, which are non repayable generally (yes we mentioned non repayable) generate additional tax and revenue for Canada many occasions greater than the tax credit values.

While federal legislation is clearly standardized nationwide each province has different organizations under different ministries to deal with provincial part of the grants or loans or financial loans.

In Ontario for instance you’ll be able to claim tax credits for six different credits – but did you know if properly mentioned you’re going to get immediate earnings and financing of individuals film credits. (The six credits are: Production services/book posting/sounds recording/interactive media/film and televisionOrpc animation).

How do these credits be funded request our clients? Quite simply for individuals who’ve valid tax credit claims as well as the proper certificates in place you’ll be able to monetize these into immediate earnings. In the terminology perspective we could almost state that you are earning cash, invoice factoring, or discounting your claim now based on earnings you’re going to get within the federal and provincial government physiques. Basically they are a / r now inside your special purpose organizations (i.e. your current project/production) balance sheet.

Clients also request what qualities or even more information ought to be in place to have the ability to generate immediate financing from the tax credit. The answer then is you need to have your matters in order, namely the chance to verify your qualifications, making sure there is a right certifies both in place or set to remain in place, as well as maintain proper records showing your obligations, etc.

In some instances, where proper documentation could be acquired and has the capacity to be maintained ‘accrual financing ‘ may also be available – with this we mean earnings is produced available during your production right before final certification. This is often a true temporary earnings and capital benefit for several independent type productions.

A present paper with the exclusive firm KPMG recognized to individuals tax credits as ‘hidden money ‘. We’d explain the financial lending of individuals credits is really the actual hidden money that might be the best spoke within your productions wheel!

To summarize, just in case any project is qualified for tax credits take full advantage of them. If you wish to monetize people credits immediately into additional capital and money flow then talk with a reliable, credible and experienced firm in this area. It’s a great earnings and capital strategy in one of Canada’s most fun industries.

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