Tax Credit

Cinema and audiovisual, new tax credit rules ready

The new Italian inter-ministerial decree, jointly prepared by the Ministry of Culture (Mic) and the Ministry of Economy and Finance (Mef), is about to introduce significant changes to the tax credit rules for the cinema and audiovisual sector. The document, promoted by Undersecretary Lucia Borgonzoni and Minister Gennaro Sangiuliano, aims to refine access to tax benefits, distinguishing between “market” works and those receiving “selective contributions.” The latter are intended to support emerging productions or those of significant artistic and cultural quality that explore key events and figures of Italian identity.

One of the main innovations involves tightening the use of artificial intelligence for creative and artistic roles, and banning cascade subcontracting. Only expenses incurred in Italy will be eligible for the tax credit, with the goal of strengthening the national film industry and limiting the outsourcing of productions. The decree also plans to increase the control and verification of eligible expenses.

Regarding the distribution of the credit, the new scheme provides that 70% of the tax credit is granted upon preliminary request approval and the remaining 30% at the end of production, changing the previous ratio of 40% to 60%. This change is designed to financially facilitate productions during the initial phases, which are crucial for completing projects.

The decree also sets specific criteria for television and documentary production. For example, independent producers must demonstrate covering at least 50% of production costs to access the tax credit, and for works in international co-production, the rate can reach 35%. For cinematic productions, it is required that the original independent producer cover at least 40% of production costs, even through other public national funds.

Moreover, the decree introduces rules on transparency and information regarding the viewership of the works, obliging distributors and media service providers to disclose quantitative and qualitative data on the audience both in Italy and abroad.

According to statements by Undersecretary Borgonzoni, these measures aim to correct distortions from the previous mechanism and rejuvenate an already healthy sector, ensuring the necessary resources for robust future development of cinema and audiovisuals in Italy. With a budget of 169 million euros planned for 2024, authorities are optimistic about the decree’s ability to further stimulate the industry, ensuring that all necessary resources will be available.

Funding opportunities

Discover all the funding opportunities available for shooting an audiovisual work in Italy.

And if you want to learn more about a topic, please reach out to our Audiovisual team: audiovisual.usa@ice.it or call +1 (323) 879-0950 (M-F, 9:00 to 17:00h, GMT-8).

The “Film and audiovisual regulation” Law 220 of 14 November 2016 made the tax credit a more functional tool for domestic and international productions, who may now access significant fiscal benefits when shooting in Italy.

International Productions

  • 40% tax credit of the eligible cost of the production, for a maximum of 20 million euro per year, allocated through an Italian executive producer.

  • Annual tax credit based on production expenses incurred in Italy, up to 80% of the total production cost.

  • Immediate tax credit, available as a monthly tax deduction, paid in Italy through a local executive producer.

  • The tax credit is granted on day tenth of the month after the following conditions have been met:

    – The work has obtained cultural eligibility.

    – The expenses have been verified and incurred

Our Tax credit is currently under revision and a funding call has now opened and a funding call is now open until January 21st, 2024!

In the meantime a funding call for development and production has now opened with the current rules remaining the same, for works whose production has been completed or are advanced in the production process. A funding call has also opened for foreign audiovisual works shot and/or post-produced in Italy.

Who can apply?

  • Co-production of audiovisual works
    Projects that have completed at least four weeks of shooting or 50% of the scheduled production days, or have planned the shooting shortly and have already signed an agreement with a TV network or a streaming service.
    For more details, click here
  • Foreign productions shot in Italy
    Projects that have completed at least four weeks of shooting or 25% of the scheduled production days, or have planned the shooting shortly and have already signed an agreement with a foreign producer.
    For more details, click here

Useful link:

Tax Credit for foreign production companies

And for further information please contact: rossella.gaudio@cultura.gov.it

Funding

Discover all the funding opportunities available for shooting an audiovisual work in Italy:

Italyformovies

And if you want to learn more about a topic, please reach out to our Audiovisual team: audiovisual.usa@ice.it or call +1 (323) 879-0950 (M-F, 9:00 to 17:00h, GMT-8).

 

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Italian Trade Agency

LOS ANGELES OFFICE
12424 Wilshire Blvd
Suite 1400
Los Angeles, CA 90025
T. +1 323 879 0950
losangeles@ice.it

Sign Up to our Newsletter