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
  • Business Meeting Showdown

    It is no secret that communication and collaboration are at the heart of success and longevity for any business. However, as businesses become more global and more employees work remotely, video conferencing is being increasingly used as an alternative to face-to-face interactions. There are pros to both business travel and video conferencing such as personal connection and ease of use. However, there are cons as well ranging from travel delays to being technologically reliant. more

  • Mobile Communication Showdown

    It's no secret that businesses are becoming agiler and employees are spending more time away from their desks. The question isn't should we get rid of our landlines, but how quickly can we replace them?However, staying connected with your colleagues, clients, and customers is absolutely essential for cultivating long-term, lucrative relationships that will help your company achieve success. more

  • Signs you are Ready for Mobile BI

    With workforces moving more and more mobile on a daily basis, it is essential to ensure that your company is able to arm your employees with the analytics that they need to succeed. 89% of business leaders believe that Big Data will revolutionize business operations in the same way that the internet did. These numbers show the trend towards investing in a BI system. more

  • 15 Ways to Optimize Your Contact Center

    We live in a time where customer experience is seen as an important competitive differentiator. Given this, wouldn't you like to make sure that your contact center is fully optimized to meet your business needs? Deciding to upgrade and optimize your contact center is a big step, and one that shouldn't be done without due diligence and plenty of research. more

  • Stress-Free Video Conferencing

    It should shock no one that video conferencing technology is an amazing tool to connect and engage with business contacts in a more personal and effective way. In fact, only 7% of how we communicate is through words, whereas a whopping 93% is through tone of voice and body language. To further the strength of video conferencing, 99% of professionals feel that by improving communication and collaboration, productivity will be positively impacted. more