Some Light Ahead for Uncertain Italian Film and Tax Credits

 The Italian film landscape has been hampered by considerable uncertainty around its film and tax credit offerings over the past months. Last week, we finally saw news break that the uncertainty could be at an end, with new revisions on the way to the Italian cultural ministry for final approval. Brandon Blake, entertainment attorney at Blake & Wang P.A. reveals what this could mean for productions keen to capitalize on Italian filming opportunities.

 


Brandon Blake

More Stringent Eligibility Rules

While the 40% tax credit for some locally-produced movies and TV series will remain in place, the eligibility rules have reportedly been tightened considerably. There are also updated terms around crew incentives, which raises the possibility of Italian writers and directors needing to be attached to productions. There will also be a “minimum expense limit” for work done in Italian territories, with at least one full filming day in the country being needed to qualify. These new revisions are clearly aimed at clawing back some of the growing tax credit allocations the country has seen in recent years.

Further Information on the Way

While the original credit has seen a large boom in productions being shot in Italy, the tax credit itself (which saw government obligations doubled between 2019 and 2022) has been accused of being overly generous without the expected tangible benefits for Italy itself manifesting clearly.

The newly revised plans will now head to the ministry for final approval, after which we will have the full details announced before their government’s summer break. Hopefully, the news of coming clarity will help to resolve the months of uncertainty that have seen many Italian productions, both local and international, halt shooting, a trend that has been viewed as highly damaging to the entertainment sector in the country.

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