Law n° 220 of 14 November 2016 'Disciplina del cinema e dell'audiovisivo' establishes the 'Film and Audiovisual Fund' aimed at funding works through tax credit, automatic contributions and selective contributions.
The law recognises six types of tax credits:
Tax credits for distribution companies allow companies to offset tax liabilities (IRES – corporate income tax, IRPEF – income tax, IRAP – regional income tax, VAT, social security and insurance contributions) with credits accrued following an investment in film.
Tax credits and other State support may not, all together, exceed 50% of the cost of the audiovisual work (this increases to 60% and 100% for certain types of works – see article 7 of the implementing decree).
The work must meet cultural eligibility requirements.
The applicant distribution company must have their registered office in the European Economic Area and be resident for tax purposes in Italy.
Distribution costs must be no lower than:
Independent producers that distribute their own films:
The application for tax credits must be submitted to DGCA:
Tax credits are granted to television and web channels for international distribution only.