GUIDELINES New Brunswick Multimedia Initiative 1. Initiative In support of New Brunswick based production companies and, in an effort to encourage and facilitate training and hiring of New Brunswick human resources, the Province is providing funding of 25% to 30% of eligible expenditures incurred in New Brunswick, depending on the project genre and company eligibility. Total provincial contributions will not exceed 30% on any production. The basic provincial contribution will be 25% of eligible expenditures incurred in New Brunswick for all eligible projects. An additional contribution of 5% can be accessed by bona fide New Brunswick production companies having their permanent establishment in the province and producing, alone or in co-production, an eligible project as described below (section 5A). 2. Objective The Arts Development Branch facilitates community cultural development and the economic development of New Brunswick s cultural industries. The Branch provides leadership for the development, implementation and monitoring of government policies and strategies supporting the arts in the province. Funding support to the Film, Television and New Media industry through existing programs of the Regional Development Corporation (RDC) will assist the Arts Development Branch in achieving the following goals: a) To ensure the continuing development and production of quality products appealing to a variety of audiences; b) To increase the opportunity for New Brunswick residents working in the film, television and new media industry, for skills development, employment, creative expression and national and international marketing of their products; c) To contribute to the value of the New Brunswick economy; d) To increase the national and international visibility of New Brunswick.
3. Eligible Applicants General eligibility criteria: Film, television and new media production companies must be incorporated in New Brunswick, in order to be eligible to apply for funding from RDC. Companies must demonstrate that their primary purpose is the domestic or collaborative production of film, television and interactive new-media products. An eligible corporation is defined as a corporation that is legally incorporated in New Brunswick (other than a corporation that holds a broadcasting license issued by the Canadian Radio-television and Telecommunications Commission), and that: a) whose directors meet eligibility criteria in terms of New Brunswick residency, which is defined as a person who has been a resident of New Brunswick on December 31 of the previous year and has filed his/her income tax in NB; b) has a permanent establishment in New Brunswick, and c) holds assets of less than twenty-five million dollars ($25M) at any time during the taxation year. Individuals, non-incorporated groups, licensed broadcasters and distributors ARE NOT ELIGIBLE to apply for RDC funding. 3(A) Eligibility of privately owned corporations: Privately owned corporations must demonstrate that: a) they are incorporated in New Brunswick; b) their head office and principal place of business is located in New Brunswick; c) A majority of their voting shares (51%) are owned by eligible New Brunswick residents. 3(B) Eligibility of publicly traded Corporations: Publicly traded corporations must demonstrate that: a) Eligible New Brunswick residents hold effective voting control of the corporation, whether directly or by trust agreements, pooling agreements, shareholders agreements or similar legally binding agreements; b) A minimum of 51% of Directors and/or voting members of the Board of Directors are eligible New Brunswick residents; c) The individual director or directors of the corporation is (are) eligible New Brunswick resident (s) and must maintain his/her (their) position in the production from the application phase through to production and post-production.
Corporations can also be involved in co-production agreements: 3(C) Eligibility of co-productions: New Brunswick recognizes that eligible corporations may access funding through intra-provincial, inter-provincial and international co-productions. In all cases, access to RDC funding is restricted to the eligible New Brunswick corporation(s). Intra-provincial co-productions: Two or more eligible New Brunswick corporations may, for the production of a film, television or new-media project, enter into a co-production agreement. In all cases, eligible New Brunswick companies must retain an ownership position in the copyright of the project commensurate to their financial participation in the project. Inter-provincial co-productions: Inter-provincial co-productions are considered eligible if there is an eligible New Brunswick company sharing creative and financial control of the project. Determination of eligibility for these types of projects is at the discretion of WCS and must be included in the co-production agreement between all parties involved. An inter-provincial co-production must, at a minimum, meet the following criteria: a) The production company applying for funding support must be owned and controlled by an eligible New Brunswick resident; b) The applicant production company must receive shared credit as a producer of the project; c) The applicant production company must share in the revenues of the production at terms no less favorable than the proportion of financing it brings to the project. In no case will the copyright ownership of the New Brunswick company be less than 33%; d) A minimum of 50% of the total production budget must be spent in New Brunswick. International co-productions: International co-productions must meet conditions listed above, in addition to the following: a) The New Brunswick based production company must retain no less than 20% share of revenues and ownership position in the copyright of the production; b) The New Brunswick based production company must demonstrate that it has satisfied all relevant international co-production treaties, as determined by the Canadian Media Fund. Note: The eligibility of any co-production must be reviewed by WCS and must receive written prior approval by RDC.
Service productions: National and international service productions doing business in New Brunswick must meet the following conditions: a) 60% of the total production budget must be spent in New Brunswick; b) a minimum of 25% of all labor must be New Brunswick based. The provincial contribution will not exceed 25% of expenses incurred in New Brunswick for any service productions. 4. Eligible expenditures Eligible costs are generally defined as expenditures where salaries, goods and/or services are paid, purchased and consumed in New Brunswick. This includes air travel that departs and arrives within New Brunswick provincial borders. Air travel outside of the province for a New Brunswick based crew contracted by the production company to perform a service essential to the production, is also eligible. In cases where a good or service is deemed essential to the production, but is not available in New Brunswick (e.g. film stock, special effects, rain making, stunt coordinator, specialty technical services), an amount may be permitted given documented proof that said good or service is not available in New Brunswick. Documented proof must be submitted to WCS. Note These are considered exceptions and must be pre-approved by WCS prior to the 1 st day of principal photography. Regular crew positions will not be considered. 5. Project eligibility levels A- Projects eligible at 30% of expenditures WCS will accept applications for funding from eligible applicants producing film, television and new media projects in the following categories: a) Dramatic and documentary feature films, made-for-tv movies (mini-series, MOW), and TV series intended for theatrical screening and television (including pay and pay-per-view); b) Dramatic, animated, variety and children s TV, film or video programming; c) Television, film and video programs in documentary, educational, experimental and nontheatrical genres. There is no restriction on the length of any project. B- Projects eligible at 25% of expenditures
WCS will accept applications for funding from eligible applicants producing film, television and new media projects in the following categories: a) Variety Shows, magazines, music and dance performances, visual arts performances; b) Festival captations, television vignettes. 6. Non-eligible projects WCS will not accept any applications from the following categories: a) Films and videos of a promotional or instructional nature, intended for commercial, industrial or institutional purposes; b) Technical instruction videos, music promotional videos and how-to videos; c) Game shows, talk shows, contests, sporting events, news, weather and current affairs reporting; d) Gala and/or award presentation shows; e) Pornography and topics which, in the opinion of the Arts Development Branch, does not enhance or may be detrimental to the image of the industry in the province or may cause prejudice to certain people based on gender, race, sex, religion or political orientation. 7. Application procedures and requirements Any eligible corporation, (including those involved in co-production agreements) producing an eligible project in New Brunswick, may apply to WCS. The application process involves two (2) phases. A. Pre-production application A production company is asked to submit the required application form and any supporting documentation to WCS. The Arts Development Branch of WCS will review the application to ensure that program requirements are met prior to forwarding the application, including a sector review and recommendation to the Regional Development Corporation. Once the WCS process has been completed, and the evaluation is positive, the Deputy Minister of WCS will send a letter to the President of RDC recommending the project and requesting funding support. An eligible producer must provide the following documentation to WCS: a) A completed, signed and dated application form; b) A signed and dated locked production budget; c) The financial structure proposed for the project and details of the financing that is already in place; d) A summary of key personnel; e) A distribution and marketing plan which includes projected sales (when required by other funding partners);
f) Details of the status of negotiations for distribution and/or licensing of the project (when required by other funding partners); g) A co-production agreement where applicable; h) Details of chain of title to script writer agreements, option and purchasing agreements, literary rights, etc.; i) Corporate information on all companies involved in the project (i.e. articles of incorporation, corporate structure, etc.); j) Two (2) copies of the latest draft of the script (bible if a TV series) treatment or proposal in the case of documentaries; k) Eligible applicants must demonstrate that all necessary insurance and performance bonds (where required) have been obtained in order to protect any investment in the project. RDC reserves the right to include any condition in the fulfillment of the contract that it deems relevant. This should be clearly outlined in the letter of intent and any subsequent contracts. B. Post-production Application Upon completion of a project, the production company will submit the required documentation to WCS. The following information is required prior to the issuance of the final drawdown payment: a) A list of all eligible expenditures incurred in New Brunswick (before taxes); b) Projects of less than $100,000 in total production value, require a signed affidavit attesting to the actual costs of the production; c) Projects between $100,000 and $500,000 in total production value, require a Review Engagement Report ; d) Projects exceeding $500,000 in total production value, require an independent Audited Report; e) A statement from an independent professional accountant confirming that all employees and suppliers have been paid and any contracts associated with the production have been honored.