Tax Credits: instructions for use
The fine details of the new legislation on tax credits supporting French cinema, launched on November 14, have finally been unveiled. The system will start on January 1, 2004 and is for films that are shot and technically worked upon in France.
The credit has been defined as “very simple” by the CNC, and it aims to “encourage film production companies to make their films on national territory”. The system allows producers to take advantage of a series of tax reductions. Producers can integrate the allowable tax credits into the financial plans for their films.
The beneficiaries of the system include “film production companies who are subject to taxes, on the condition that the businesses who provide the technical work for the production are French or European and that the shooting and post-production work is done in France”. The credit will be applicable for up to 20% of the film’s budget spent in France, up to a ceiling of €500,000 per film. An exception is being made for animated films, where the maximum level of credit is worth €750,000.
On a practical level, the credit will be agreed “from the time of the publication authorising the making of the film, on the basis of documentation that includes detailed lists of the production spending, the staff employed and the technical companies involved, including an explanation of their nationality”.
According to the CNC this is “and important innovation”, which will certainly safeguard a number of jobs.
(Translated from French)
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