Co-Productions & Tax Credits
Certain countries and US States offer tax credits and/or subsidies to encourage film production in their locale. Canada, The UK, Germany, South Africa, Singapore, New Zealand and Australia have well-established tax credit programs as do Louisiana, Michigan, New Mexico, Arizona, Hawaii, New York, Connecticut, Puerto Rico and other US jurisdictions. Even the US Federal Government has launched a new tax incentive.
Certain countries have co-production treaties which allow producers to access tax credits and subsidies from two or more countries for one film. Canada has treaties with most countries and FFS has strategic partnerships with Canadian producers and studios for co-productions that FFS structures for its films. FFS is especially active in Canada-China co-productions. These co-producers from around the world not only access the tax credits and subsidies but they may bring equity or services to FFS’s films.
FFS is expert at maximizing the tax credits and subsidies for its films and we usually strive to obtain at least 20% of a film’s financing from such sources that usually do not need to be repaid. Some tax credits are available only after a film is completed but FFS can provide or arrange for advances against these amounts and use the advances as part of the production finance.
Many of our current films are China co-productions and this structure allows the film to obtain lucrative distribution in China without falling under the strict import quotas. Also please see the Current Funds and Focus on China for more ways we can help with these co-productions.
On a case-by-case basis, FFS arranges the most appropriate co-financing structure and brings in partners from the co-producing countries.