Special Report on Investment & Finance: Provincial funding and investment sources

Following is the 1996 edition of Playback’s annual digest of provincial funding and investment sources available for Canadian independent film and television program development, production and/or distribution.

NOVA SCOTIA

Nova Scotia Film Development Corporation

about $1.3 million a year is available to film and tv projects through production investment, development loans and special project grants. Projects eligible for support are features, series, miniseries, tv specials, documentaries and non-theatrical programs for non-commercial broadcast settings.

The nsfdc can make up to $25,000 available in interest-free development loans, and up to one-third of production financing (through equity investment), with varying maximum dollar amounts depending on the project genre and recoupment potential of the project. The production funding cap is currently $200,000 per project.

The Nova Scotia Film Tax Credit is available to qualifying production companies. It provides a fully refundable corporate income tax credit of 30% of the eligible Nova Scotian labor content of a production, up to 15% of the total eligible budget.

Contact: NSFDC Funding and Administration at (902) 424-7177 or nsfdc@fox.nstn.ca

QUEBEC

Quebec Refundable Production Tax Credit

a refundable production tax credit covering 40% of eligible personnel costs incurred by Quebec production companies is available for the production of certified Quebec film or television programs. Eligible personnel expenditures cannot exceed 45% of eligible production costs, effectively capping the tax credit at 18%. In the case of a coproduction, the tax credit is calculated on the Canadian portion of the budget.

Corporations eligible for the tax credit are independent Quebec production companies directly controlled by persons who have had their domicile in Quebec for at least two years. Broadcasters and broadcasters’ subsidiaries are ineligible.

Feature films, tv movies, tv series, miniseries, docs and children’s programs are eligible provided they qualify as a Quebec production.

The tax credit may be interim financed by the Societe de developpement des entreprises culturelles (sodec).

Contact: Ministere du Revenu, Gouvernement du Quebec at (418) 652-5117

Societe de developpement des entreprises culturelles – Quebec (sodec)

sodec has $13 million available annually through a series of investment and grant programs intended to provide financial support for the production of quality Quebec film and tv. It offers assistance to companies in the private and independent sectors at all stages of the projects, from scriptwriting to production to distribution.

sodec’s initiatives focus on the production of short, medium and feature-length fiction and pov docs. It provides preproduction advances for tv fiction series and miniseries.

sodec also supports exhibitors, festivals and other Quebec film events, as well as the distribution of foreign films with limited exhibition. It also, from time to time, initiates special projects intended to encourage the promotion of film and television production.

Contact: Suzanne Laverdiere, director, film and tv department, or Beatrice Couillard, co-ordinator, (514) 873-7768 or 1-800-363-0401

Societe de Developpement Industriel du Quebec

sdi manages the Quebec Business Investment Companies/Societe de placement dans l’entreprise quebecoise program for Revenue Canada, which is accessible to companies in the film and tv sector. Post-production is included in sdi’s information technology classification, and film and tv companies which have previously completed at least one production qualify under its culture designation.

qbic/speq provides tax benefits for investors who invest in production and post-production companies. Post initiatives considered for financing include startup or expansion, research and development for software or hardware, equipment purchase, corporate regrouping or alliances. Export activity, such as the marketing of a product outside Quebec, is also deemed suitable.

Contact: Ghislain Blondin (514) 873-4375

ONTARIO

BBS/CJOH-TV Concept and Script Development Fund

the BBS Ontario Incorporated, CJOH-TV Concept and Script Development Fund, established by Baton Broadcasting, will remain in place until cjoh’s next licence renewal with an annual allocation of $115,000.

The bbs/cjoh fund makes annual concept and script development loans to applicants based in the cjoh broadcast area (eastern Ontario and western Quebec). Preference is given to concepts which lend themselves to local production, but the fund will consider all forms of programming for tv, with an emphasis on the children’s, drama and variety categories.

The fund also supports tv-related professional development events in Ottawa with grants to participating individuals and associations.

Contact: Bryn Matthews (613) 224-1313

MCTV Fund

Geared towards the production of 13 half-hour pilots for primetime broadcast on mctv, Baton Broadcasting offers $100,000 annually in development funds and $400,000 in production funds.

MCTV Development Fund: Producers eligible for interest-free development loans ranging from $1,500 to $7,000 per project must reside in the mctv coverage area. Loans are generally repayable on the first day of photography.

Showcase Fund: Production-ready projects may be eligible to receive production loans of about $31,000. mctv airs the finished pilots in primetime and retains the rights to them, including the option to carry the projects into series production.

Contact: Keith Campbell (416) 487-3770

Ontario Arts Council

the Ontario Arts Council runs two programs; Artists, Film and Video and First Projects: Film and Video Grant.

Artists, Film and Video has an objective to support independent production by Ontario film and video artists. It assists those applicants who have completed at least one self-assigned film/video work as a maker/director. An example of a previous film and/or video work is required with each application, as it’s essential to the adjudication process. The applicant must have creative control of the project, and the project must not exceed $250,000.

The $5,000 First Projects: Film and Video Grant supports first-time and emerging Ontario film/ video artists undertaking an original project for which they have creative and editorial control. A previous work in film or video is not mandatory, but prior artistic production experience will be considered in the evaluation.

Contact: Dan Lander, media arts, (416) 969-7450, ext. 6305

Ontario Film Development Corporation

in July 1995, a funding freeze was imposed by the Ontario government on business assistance programs, including those of the ofdc. It’s anticipated that the ofdc’s menu of programs will be revised pending the result of a government review.

The ofdc will, however, be jointly responsible, with the Ministry of Finance, for administering the Ontario Film and Television Tax Credit. In order to harmonize with federal changes to film tax incentives, Ontario will provide a refundable film and tv tax credit for eligible Ontario-based productions. The credit will generally be a rate of 15% of qualifying labor expenditures incurred after June 30, 1996, with first-time productions eligible for a 30% rate. Qualifying labor expenditures cannot exceed 48% of the cost of production.

Contact: ofdc (416) 314-6858

Toronto Arts Council

The Toronto Arts Council’s Grants to Visual Artists program provides grants of up to $12,000 to City of Toronto visual artists and indie film/video artists. The City of Toronto is a distinct area within Metro Toronto; it does not include North York, East York, York, Etobicoke or Scarborough. The 1996 deadline is Oct. 15.

Applicants must retain total financial and creative control over their projects, therefore most projects involving broadcast licences are not eligible. Total budget for film and video projects (including development and post) cannot exceed $150,000.

Contact: Nalo Hopkinson (416) 392-6802, ext. 208

The View From Here

This tvontario 13-part, one-hour and feature-length commissioned current affairs documentary strand is open to Canadian independent producers (preference is given to Ontario producers) with docs in the $100,000 to $400,000 range. Licence fees range from $10,000 to $60,000. Development funds may be advanced to producers as a portion of the prebuy licence fee at the discretion of commissioning editor Rudy Buttignol.

Contact: Cornelia Principe (416) 484-2600, ext. 2540

MANITOBA

Manitoba Film & Sound Development Corporation

each year, approximately $1.5 million is available for equity investment in film and tv productions. Projects with experienced Manitoba resident producers, national distributor/broadcasters, and for which principal photography is to take place in the province are eligible. As well, Manitoba Film & Sound offers support for development and marketing of a project.

Manitoba Film & Sound will invest up to 20% of the production budget to a maximum of $400,000. The agency does support coproductions, but 50% of the creative, corporate control and copyright must belong to the Manitoba producers, and points involving Manitoba content must be satisfied.

The ceiling on development participation to a final draft is up to 50% of a budget, to a maximum of $25,000. Up to 50% of marketing costs, to a maximum of $15,000, may be allocated.

Contact: Carole Vivier, gm, or Karen Cameron, film officer, at (204) 947-2040

SASKATCHEWAN

BBS Saskatchewan Program Development Fund

designed to foster local tv production, and administered from cfqc-tv Saskatoon, this fund allots $50,000 annually towards developing projects of Saskatchewan producers. Average development loans fall between $4,000 and $5,000. A development budget, synopsis and producer must be attached to the project, and the station has first right of refusal.

Contact: Annette Meckelborg (306) 665-8600

Saskatchewan Communications Network

while there isn’t a formal funding program, the province’s educational broadcaster, Saskatchewan Communications Network, works with the local indie community by participating in production funding at the development (with an option to participate further with the project) and production stages. scn, which has no in-house production, spent over $600,000 last year on local production.

scn programming decisions are influenced by constituency need, so proposals should come with local support attached. Unless there is a significant Saskatchewan spin, out-of-province proposals are unlikely to trigger development assistance.

Contact: scn (306) 787-0490

BRITISH COLUMBIA

British Columbia Film

british Columbia Film provides seed capital for film and tv initiatives having significant b.c. components. Eligible projects include feature films or television programs (dramatic, animated or documentary), dramatic tv series, and non-theatrical programming (documentary, educational, interactive multimedia and performing arts programs). Service productions are not eligible.

Market Incentive Program: The Market Incentive Program encourages market support in b.c. film and tv projects. Development and production incentives are available through this program based on eligible market support, and applications are assessed on a first-come, first-served basis.

The development incentive is equal to the eligible market support for each stage of development of the eligible project and is in the form of a recoupable advance bearing no interest to a cumulative total of $20,000 per project. The production incentive varies with each program type and is provided by way of a non-recoupable advance.

Assistance is also available for multimedia development, distribution and marketing initiatives, professional development and industrial development grants.

Contact: Wayne Sterloff, president and ceo, (604) 736-7997

Equity Capital Program (VCCs)

individuals who invest in a Venture Capital Corporation – which invests in eligible small-business ventures including indigenous b.c. film production – can garner a 30% tax credit. The vcc can acquire up to 50% of a company and investors must be arm’s length from the small business.

Under the Equity Capital Program, a total of $5 million can be invested in any one company. Westcom Entertainment Group, Cine-Vu and the North American group have set up vccs.

Contact: Ministry of Small Business, Tourism and Culture at 1-800-665-6597 or (604) 387-0225