Cinema and audiovisual, new tax credit rules ready

Subdivision between works 'on the market' and works benefiting from 'selective contributions' (supporting first and second works, films of particular artistic quality, difficult and recounting events and personalities of our cultural identity) which will follow different procedures to benefit from the tax credit. But also a tightening on the use of artificial intelligence, a ban on cascading contracts, eligible expenses only among those made in Italy, and a strengthening of audits.

The new tax credit for the cinema and audiovisual sector is ready to make its entrance onto the scene after the work, announced a year ago by the Mic undersecretary with responsibility for the audiovisual sector, Lucia Borgonzoni, which was then shared with Minister Gennaro Sangiuliano and carried out by the Mic's General Directorate for Cinema led by Nicola Borrelli. In the next week at the latest, the inter-ministerial decree should be sent to the Mef (it is in agreement) and to Mimit for an opinion. "From that moment on," Undersecretary Borgonzoni explained to Il Sole 24 Ore, "I will become the main stalker of the Mef (laughs, ed.) with the idea of arriving at a start-up, practically, in the summer".

The list of beneficiaries or those who have applied for production tax credit in recent years is long. A rummage through the Mic database reveals that the largest request at the moment is for Luca Guadagnino's film Memorie da Mexico city (17.8 million), while Saverio Costanzo's Finalmente l'alba has had the largest disbursement so far (9 million). Seasonal successes also made reference to tax credit: Comandante (5.2 million); Io Capitano (3.6 million); C'è ancora domani (3 million).

'I believe we have done a great job, also together with the associations,' Borgonzoni emphasises, 'necessary to correct the various distortions of the mechanism. It will redesign a cinema system that is healthy in a positive way'. The knot of resources remains. The distribution decree indicates 169 million for 2024 between cinema (60 million) and TV and web (109 million). The resources needed so far are estimated to be twice as much. "There are extra funds left over from selective contributions for example. That said, the revision of the rules will also lead to different numbers in terms of applications. And there will be all the necessary resources.

As reconstructed by Il Sole 24 Ore, there are various novelties in the interministerial decree. Such as the exclusion of costs for the use of artificial intelligence for creative and artistic services (above the line). Labour costs, then, may be considered as per national collective labour agreements stipulated or renewed from 1 January 2019, with the amount increased up to a maximum of 20%. It will be necessary on another front to see Brussels' acceptance of the elimination of costs incurred in the 'European Economic Area' from the calculation, which are now covered up to a maximum of 20%. As for services, for the execution of individual parts, the eligibility of costs is envisaged only if incurred in Italy and provided that the entrusted company has its registered office in the country and does not proceed to "cascade" subcontracting.