By Rick Dugdale, President of Enderby Entertainment
Soft monies in the form of tax credits, rebates or any form of government subsidies are the first place any producer goes to try to round out his or her budgets in the development phase of a film (see “Price Point” http://tinyurl.com/4xh7dwe).
Many states and countries around the world offer incentives. These tax incentives can range from 10% up to 65% (in the case of Manitoba, Canada). That makes them very enticing.
While incentives are the big, sexy drawing card, there are several things that often get overlooked—or that can even backfire and negatively impact your soft money—when productions pursue them with blinders on. Here are a few:
Economy
A strong economy versus a recession can have many impacts on your production—including cost and availability of equipment, and even finding experienced crew who are willing to work.
Infrastructure
Filming in places with big infrastructures can also backfire on your production, since such locations are typically also leading destinations for the studios to target, hence creating high prices and limited or no availability.
Unions
Depending on your level of budget, make sure you meet certain union criteria (or make sure you can even qualify), as this surely will also determine the value of your soft money.
Foreign exchange
Lastly, although obvious, never forget to look at the foreign exchange for the country you’re shooting in, as this can cause your budget to fluctuate immensely. When you’re dealing with short timelines and quick cash-flows, this can easily be overlooked.
In the world of independent filmmaking, every bit of knowledge helps. Do the work and compare states and countries to find the best home for your production.
