French lawmakers propose increase to tax rebate for foreign film productions
The French tax rebate system for foreign productions, which is in fact a tax credit claimed by a French line production company, has been around since 2009. The current system is described in full on the Film France site. Several criteria and points must be satisfied in order to benefit from the French tax credit, and the qualifying expenditures are limited. Once adopted, the new system may still need to be approved by the European Commission under state aid rules. The revised rules would significantly enhance the attractiveness of the French scheme:
- the cap for the tax rebate for non-French motion picture productions would be increased from € 4 million to € 10 million. For French productions, the cap will be increased from € 1 million to € 4 million ;
- new expenses such as transportation, hotels and catering costs, will be eligible for the credit.
These amendments will have to be confirmed by a decree before January 1, 2014. An uncertainty exists regarding the application of these new measures between the entry into force of the French Amending Finance Bill for 2012 and the publication of the decree.