During the American Film Market 2024, the Directorate General for Cinema and Audiovisual of the Ministry of Culture, with the support of Cinecittà and the Italian Trade Agency, presented the guidelines for the new regulations on the Tax Credit for international productions that choose Italy as the location for their shoots. Italy once again confirms itself as one of the most attractive destinations, thanks not only to the renowned beauty of the landscape but also to the technical expertise of the workforce and the competence of local executive producers. Now, with the confirmation of the tax credit at 40% of eligible costs incurred in the country, a maximum cap of 20 million euros per company per year, and an overall budget of 400 million euros annually, regional funds, which are increasingly substantial, further enhance Italy’s appeal as an advantageous choice for international productions.

The text provided by the Ministry of Culture – Cinema and Audiovisual Directorate is reported as follows:

Provisions confirmed

• The recognized rate is equal to 40% of the production cost of the work spent on Italian territory; a 30% rate is provided for costs above the line relating to non-European subjects only.
• The tax credit has a maximum annual limit, for individual company or group of companies, of €20 M; there is no maximum limit per work.
• In any case, the national production tax credit, when used by the same company, is not included for the purposes of calculating the limit of €20 M per year.
• There is no modification to the other provisions relating to the eligible costs incurred on Italian territory.
• The transferability of the tax credit was confirmed.
• Also confirmed is the deadline of 180 days from the conclusion of the activities within which the definitive request must be submitted.

What’s new

• The costs of personnel and professional figures regulated by national collective labour agreements are eligible, for every employee, within the limits set out in the collective agreements stipulated by the most representative employers’ and trade unions’ associations increased up to a maximum of 20%.
• The requirement to include at least one day of filming/work on Italian territory has been eliminated (an innovation long-awaited by post-production companies).
• The benefit is granted on condition that the eligible cost is at least €250 K.
• There is now the possibility, in the presence of certain conditions, for the DGCA to remove the ban on executive production and post-production companies owning rights in the audiovisual work.
• Costs incurred in Italy relating to the use of artificial intelligence are considered ineligible, except for the use of artificial intelligence relative to special effects relating to the item “Main actors” (the provision concerns only the Italian executive producer).
• There is now an obligation to communicate the stages of the work carried out in Italy using artificial intelligence, in addition to the obligation to include specific clauses in the contracts between Italian executive production or post-production companies and writers, interpreters and performers of the work that permit their refusal to consent to the exploitation of their work/image/professional performance by artificial intelligence systems
• Applicants must operate in compliance with the protocol against harassment and violence in the workplace in the film and audiovisual sector signed by the largest employer and trade unions.
• Payment for the process costs is now required.

Opening of the Application Session for the Tax Credit for Cinematic and Audiovisual Investments in Italy – 2024 Fiscal Year

On Friday, December 6, 2024, at 12:00 PM (Italian time), the application session will open for submitting preliminary and final requests to access the tax credit aimed at attracting cinematic and audiovisual investments in Italy for 2024.

The procedures for submitting applications, required criteria, and all relevant information are detailed in Director’s Decree No. 3830 of December 4, 2024, available on the official website of the Directorate General for Cinema and Audiovisual. Click here to access the site.

For assistance, you can contact the Help Desk at +39 06 6723 3235, available Monday to Friday, from 9:00 AM to 6:00 PM (Italian time).

For practical and technical information, detailed guides (vademecums) are available in the dedicated section of the DGCOL platform, which also provides technical support for any issues.

To avoid delays or problems, it is strongly recommended to submit applications well in advance of the deadlines.

Please review the document Tax Credit for International Productions

Funding opportunities