Written by David Lewis on Feb 1, 2008. Posted in Incentive News

Italian production incentives on track

Incentives in the form of tax credits have been introduced for FYs 2008 and 2009 to
strengthen the Italian movie production in favor of investors not belonging to the movie
business and the industry players.

The proposal provides for different measures depending on the nature of the taxpayer:

• Investors may be granted with a 40% tax credit on cash contribution to companies
involved in the creation of movies recognized as having an “Italian nationality” under
specific existing rules.

• Production companies must invest 80% of the received amount within the Italian
territory and are granted with a 15% tax credit computed on the costs incurred.

• Distribution companies are granted with a tax credit of 10%, 15% or 20% depending on
the circumstances, computed on the costs incurred for the activity carried out in the
Italian territory.

• Movie theaters are granted with tax credits ranging from 20% to 30% on costs incurred
for investments in digital equipments or on cash investments in movie productions.
Tax Alert 3 October 2007 6/8

Tax credits may not be summed up and each of them is granted up to an annual limit ranging
from 1 to 3.5 million€ depending on the case.

Regulations will be issued to detail the new regime which is, in any case, subject to EU
approval.