Where Will You End Up Without Canadian Film / Movie Tax Credits & Financing?

Updated: May 31, 2011

We recently saw a movie called " Made in Romania " starring Jennifer Tilley. The film has classic elements of a film tax credit scam gone awry in the worst way, from co production to poor planning, etc.

So that's our trivia for today, what we really wanted to address was that Canadian Film and Movie tax credits, and their unique financeable features can save you from ending up somewhere along the lines of our analogies above .

Canada has made it very clear that it supports the film, TV, and emerging and fast growing digital animation industry by providing a solid finance tax credit mechanism that works. And you're already familiar with the strength and reputation of Canada's government and banking policies, which are world renowned.

If you have a Canadian controlled private company (most producers of course set up a special purpose legal entity for each of their productions) you are eligible for tax credits, and have the further ability to monetize those tax credits for cash flow and working capital purposes. We would point out that it also includes co productions and various treaty arrangements throughout the world. (We'll have to check if that includes Romania!)

So what do these film and movie tax credits include. Essentially when we're talking film and Television were referencing labour expenses ,production costs, and some really unique what we will call ' regional ' credits , which might actually drive where you choose to shoot principal photography, scene locations, etc .

Let's provide a quick example, because we receive many calls from U.S. producers always quizzing us on some of the nuances of the system.
Let us assume you have chosen British Columbia as a location. The majority of the industry is driven to Vancouver of course, a major metro centre. But by filming outside Vancouver and additional 6% of tax credit becomes available. We suspect it's because of the ability of your production to drive employment and spending in non city areas... but who are we to judge? Ours it to utilize!

The reality is that this is Canadian financing of utilization of tax credits requires some expert help, so your ability to align yourself with a Canadian film tax credit financing expert is valuable from a viewpoint of maximizing your claim .

How the tides have turned, because the majority of interactive media and film and TV principals in the industry are currently quite bullish according to polls conducted by one of the major accounting firms that specializes in this area. The ability to reach your audience through a variety of media increases everyday.

Financing of your claims can be a tremendous boost to your overall production budget from a cash flow perspective. You can finance your claims on completion, or utilize accrual type financing, providing cash flow during your spend.

Featured Research
  • Contact Center Software on a Budget

    Although contact center software is necessary for a modern contact center, it can be outrageously expensive. Many companies find that their budget bloats during the implementation process. more

  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more

  • Business Intelligence Software Cost Guide

    Your choice in a BI (Business Intelligence) provider can lead you to make better, data-driven decisions for your business, resulting in significant ROI. Or it can cost hundreds of thousands of dollars with mixed results. more

  • The New 2016 ERP Comparison Guide

    Selecting an ERP solution is no easy undertaking. You have to select and configure a system that fits your exact business needs. The right system can make operations more streamlined, efficient, and agile. But choosing the right vendor can be difficult. more