19/12/2008

After years of intense lobbying, French film industry professionals have achieved their ends with the adoption by Parliament – within the framework of the Finance Law 2009 – of a tax credit plan for foreign producers shooting in France.

According to the FICAM (Federation of Film, Audiovisual and Multimedia Industries, headed by Thierry de Segonzac) and the National Film France Commission (helmed by Patrick Lamassoure), this tax incentive of 20% on expenses made on the territory – similar to the film tax credit created in 2004 for French producers – will generate as of 2009 a direct growth of over €100m, which could reach €200-250m in 2010 and 2011.

As of next year, the measure is set to bring about a fourfold increase in the number of hours of foreign film shoots in France. The attractiveness of the country’s sets and locations was previously offset by the absence of a tax incentive system like those in force in numerous other European countries (Ireland, UK, Belgium, Holland, Luxembourg, Germany, Hungary and Spanish regions).

The new plan will benefit executive producers based in France who are working on the production of foreign (narrative and animated) works that are not eligible for financial support from the National Film Centre (CNC).

These producers will obtain a 20% reduction on corporate income tax for their production expenses (minimum €1m and five days of filming). The films in question should, nevertheless, “include in their dramatic content, elements related to French culture, heritage and territory” and the tax credit will have an upper limit of €4m.

Different studies have estimated that the plan could lead to a €300m boost for tourism and sales of French products and they point out that tax and social revenue from the system is over twice as much as its cost to public finance.

(Translated from French)