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 attracting investments in film and audiovisual products to Italy 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 production and are reserved for Italian executive production companies that make films or parts of films in Italy on the behalf of foreign production companies.
The tax credit may be granted, up to a maximum of 80% of the overall production cost, for:
With the following limitations:
Post production and executive production businesses will be recognised a tax credit equal to 40% of the eligible production cost of the work when making audio-visual works, or part thereof (minimum one day shoot) in Italy, using personnel from Italy or the European Economic Area, up to a maximum of €20,000,000 per year.
Within 60 days of receiving the final application, and after checking the availability of funds, DGCA will inform applicants as to whether or not their works meet cultural eligibility requirements.