Was reading about the goings on at Cannes and came across this. Could be useful for filmmakers:
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Interesting Article on Film Tax Incentives.
4 replies to this topic
Posted 18 May 2013 - 11:35 AM
"Companies that buy tax credits from producers are increasingly working with those producers directly, rather than going through a broker. That eliminates middleman fees and can remove an extra step in the financing process."
James, you realize that this system used by some US states is absolutely the dumbest and worst tax credit system imaginable!
In Ontario, you get a hard cheque back from the government! This amount can be fully financed by one of the two Canadian banks that cash flow tax credits. You don't have to sell your tax credit, you don't have to find a buyer, blah blah blah. If your tax credit for shooting in Ontario is 10 million dollars. You receive a cheque with your company name on it for 10 million dollars. Period, over, & done.
I mean what a ridiculous system, I can't believe any producer would choose this roue over the incredible ease of the way things are done in Ontario.
Posted 18 May 2013 - 02:45 PM
Yeah, but you guys don't have deserts in Canada at least not any that could be substituted for the Northern Mexico Chihuahuian desert so I'm stuck with what is available which would be New Mexico or California for "Blood Moon Rising" and "The Hunted". I've got no problem shooting in Canada but it all comes down to the requirements of the project for example, my newest script, "Dollie" a psychological horror/thriller can be shot pretty much anywhere including Canada. I've been toying with the idea of shooting in Louisiana for that one for the ambiance, but I've also very much been considering England and Canada as I have some contacts that might be able to help me find the money to make it. I'm trying to think globally and am considering many options. I'd shoot "Blood Moon Rising" or "The Hunted" in Morocco if the deal was right. The one place I wouldn't shoot is where the story actually takes place, Mexico. TOO dangerous! Actually,
As far as the tax credits go, in New Mexico, once the paperwork is done, if you're 25% credit works out to you being owed 10 million dollars in tax credits, your LLC is issued a check for 10 million dollars (I believe the limit is 15 mil in New Mexico and if it's TV production, the rate jumps from 25% to 30%). Louisiana same deal only the tax credits are larger (up to 45% in some cases) and transferable so you can put that money towards production in the form of using the tax credits as collateral on a bank loan.Generally speaking, you'll get 80 to 90% of your tax credit. BUT you know all about this stuff, dude. You've made 3 films and are working on a 4th. I'm sure you've insisted on a producer credit if it's your script. You, NO DOUBT, will be shooting outside of your native Canada and as a producer/writer/director, you will be checking out foreign tax credits for the best deal to include incentives and backend. HOPEFULLY, you're to a point where you're making dollar one gross deals where you have control and a real return for your work.
Edited by James Steven Beverly, 18 May 2013 - 02:48 PM.
Posted 18 May 2013 - 04:14 PM
Next one shoots in Ontario, but not in an "incentive" zone.
The ones after that...well both cannot take place in Canada. We can use the post production tax credit here though. Also possible co-pro deals.
BTW, I leave for Prague on June 1st to supervise the recording of the music for, Against The Wild, which will be performed by a 60 piece orchestra. Once again defying everyone who keeps repeating...."you can't do that on your budget....blah, blah, blah....."
And yes I take producer credit on my shows, because...I am well....the producer!
Posted 19 May 2013 - 12:38 AM
Ditto, we're working on a co-pro with a company with a track record. We have a representative at Cannes looking for money. I've been told the chances are very good. I've got a few other irons in the fire just in case. Once everything wrings out, I'll also be producing (along with 2 other producers) as well as writing and directing. It's a tiny budget BUT a real budget. We'll see what happens. Glad to hear everything is going well for you. Are these next 2 pictures also family films?