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What If You Could Cash Flow And Monetize Your Canadian Film Tax Credit Today ?!

What If  You Could Cash Flow And Monetize Your Canadian Film Tax Credit  Today ?!

As a producer , director, or owner of a film, television

, or digital animation production in Canada you are, ( or should be !) keenly aware of the value of financing your tax credit, and using tax credit financing as part of your overall financing plan for your production .

Just imagine that you are now in a position to speak to equity and debt investors with the confidence that you will now be able to monetize your tax credit as a key part of your overall cash flow and working capital requirements.

Canadian players in digital, film, and TV now actively court international investors due in part to the generous tax credits that the Canadian government has provided for the entertainment industry. Ours is not to question that generosity, but to capitalize on it!

These tax credits play a key role in the importance that Canada holds in productions in the entertainment industry.

Tax incentives vary from province to province, but in generally investigation will reveal that production services tax credits, animation tax credits, and labour expenditures have increased fairly dramatically over the last couple years.

The proper utilization of your tax credits often distinguishes your production from a professionally prepared and financed venture, as opposed to one that can simply be viewed as amateurish and newbie in status. The creation of a solid finance plan with the monetizing of your tax credit is a key part of your overall finance plan. In rudimentary explanation you are simply identifying sources of what accountants might call 'where got' and 'where used're your cash flow!

The reality of Canadian film tax credits is they play a key role, no matter what the size of the venture, so the tax credit financing can be $ 250,000 or several million dollars. We assure clients that interested parties such as your debt lenders, investors, as well as their accountants and lawyers will all be looking at your finance plan and tax credit strategy in order to assess ultimate financial success.

In Canada the financing of film, television, and digital animation credits is a defined and in some cases we could call it a sophisticated process. You must be in a position to identify which geography and what provinces tax credit you will ultimately be calling upon. Critical information needed to calculate your overall finance plan is of you're your actual budget for the film, as well as a pre-sales you can qualify. You must at its simplest, as we have said, identify sources of equity and sources of debt for the production.

Completed and filed tax credits can usually be financed within a couple of weeks the process should be viewed not much differently than any business financing an application, due diligence around the tax credits, and the manner in which they were prepared, and then legal documentation and funding.

Film tax credit finance can also be accelerated via an accrual approach to the financing of the tax credit this is simply monetization of your claim as you are in fact expensing the funds, with your full stated intention to complete proper tax credit certification and qualification material.

Speak to a trusted, credible and experienced advisor in this unique area of film, TV and animation finance. Our 'what if 'title question now becomes your opportunity to successfully complete and finance your production using an effective film tax credit finance strategy

by: sprokop
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What If You Could Cash Flow And Monetize Your Canadian Film Tax Credit Today ?!