Why Canada Provides Film Production Tax Credits & SRED Tax Credits – Financing Film & SR ED Tax C

Updated: May 15, 2011

Not to be so glib, but we don't think ours is to second guess or question why the government of Canada provide all this funding for these two unique non repayable tax credit grants .

In the case of the film TV and animation industry the government seems to be returning almost 25% of all the revenues that the industry spends in Canada - that's of course a huge amount.

And the SR ED ( Scientific Research and Experimental Development ) program returns billions ( yes that's billions with a capital B !) to privately owned Canadian firms who recoup up to 40% or more of their total r&d expenses in the form of non repayable cheques issued annually to firms such as yours, ( as well as your competitors ) .

Let's focus on the film production tax credits first a bit. There's no business more intriguing complete with stars, egos, and great stories such as the entertainment business - we're talking 3 critical aspects of that - film, televison, and animation - the latter becoming very popular . No business financing challenge is more daunting than putting together the finances for these productions.

That's why the knowledge that Canadian productions or co - productions (isn't Canada Hollywood North?) take advantage of the film tax credits that can fund up to 40% or more of your budget. Your ability to then monetize that credit, during, or after production) can make up for a huge amount of your working capital and cash flow needs, for this project (or your next one!).

Let's also pay due respect to the SRED (SR&ED) credit in Canada. This program is probably the largest tax credits provider in the country. Canadian firms get refunds, via a non repayable cheque for the advancement of their R&D processes and innovations.

We continually remind clients in both the Film area as well as SRED that their claims can be financed and monetized for instant cash flow and working capital. If you are not one to wait (who can in business) film production tax credits and sred credits can be financed in a variety of manners.

Whether you're in the film tv and animation industry, or your firm is a manufacturing , service or technology company in Canada take advantage of those tax credits . And if you're reading this in Hollywood, remember that we have just shown you a way to finance 30-50% of your project. You're welcome by the way!

Featured Research
  • Is Your ERP Solution Out of Date?

    Enterprise Resource Planning (ERP) is a modern, large-scale software program designed to help businesses improve the internal flow of important corporate processes and communication. more

  • How Video Conferencing is Transforming Healthcare

    The telemedicine revolution is finally happening. Experts have been discussing the potential for patients and healthcare providers to connect remotely for years, but the market is just now moving to adopt it—in a big way. Data suggests this market will grow over 14% annually through 2020! more

  • How to Update Your Contact Center Software

    If improving customer experience is important to you (it should be), then 2017 may be a good year to reevaluate the software you use for your contact center. With customer preferences shifting, the importance of an efficient contact center has never been higher. You cannot afford to simply focus on keeping costs low. Significant competitive advantages are available to businesses who manage this area effectively. more

  • Leading the IT Revolution

    The status of technology within an organization is rapidly evolving—and so is the role of the CIO. With breakthrough capabilities enabled by new technologies, a growing shortage of available developers, and an increasingly tech-savvy business user, the role of IT—and the CIO in particular—is morphing into one of strategic advisor to the business and driver of innovation within the company. more

  • Leading the IT Revolution

    The status of technology within an organization is rapidly evolving—and so is the role of the CIO. With breakthrough capabilities enabled by new technologies, a growing shortage of available developers, and an increasingly tech-savvy business user, the role of IT—and the CIO in particular—is morphing into one of strategic advisor to the business and driver of innovation within the company. more