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The new cinema bill aims to overhaul tax credits and regulatory controls: draft bill before the Chamber of Deputies

The bill introduces a new framework for the sector, providing for a dedicated agency and recognising the structurally discontinuous nature of work in the performing arts

by Andrea Biondi

30 July 2026

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4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

The Italian film industry is attempting to overhaul its administrative structure whilst the engine is still running. The new Film and Audiovisual Law, which received the green light from the Chamber of Deputies’ committee last week, is set to be approved by the full Chamber before moving to the Senate. The debate is scheduled for tomorrow, 31 July. And simply reaching this stage is no mean feat: proposals from the majority and the opposition have been reconciled. “This cross-party consensus is truly exceptional,” remarks Angelo Zaccone Teodosi, president of IsICult.

The Film Agency

The text is undoubtedly ambitious. One new development is the Agency for Cinema and Audiovisual Media, due to come into effect on 1 January 2028. It is envisaged as an autonomous public body, tasked with taking over the operational functions currently entrusted to the Directorate-General of the Ministry of Culture: fund management, policy implementation, internationalisation, data collection, attracting foreign productions and coordination of film commissions. The Ministry will retain responsibility for policy direction, strategic oversight and inspections.

A budget of 4.5 million per year has been authorised for the launch from 2027. This separation is designed to speed up procedures, but it immediately raises the crucial question: will the Agency truly be independent and efficient? This is by no means a far-fetched question, given that, for example, the director will be appointed by decree of the President of the Republic, ‘following a decision by the Council of Ministers’, on the recommendation of the Ministry of Culture.

And furthermore: it will not draw up, nor will it be able to amend, the sector’s support schemes: the forms of support, amounts and eligibility criteria will remain fixed in law and in decrees, beyond its control, even when the market has rendered them obsolete. Of course, the idea of a national film agency is not a bad one: it is the model that has been working in France for seventy years. But that model only works on one condition: that the body truly has the necessary independence and autonomy, with access to secure resources that can be planned over several years.

The Film Forum

Alongside the Agency, the Cinema and Audiovisual Forum will be established, a permanent consultative body comprising experts and representatives from across the sector, ranging from creators to workers, and from producers to streaming platforms and video games. It will replace the Higher Council for Cinema (which certainly had no impact) and will be responsible for assessing public policies, issuing opinions and monitoring the impact of artificial intelligence.

The management of public funds

The economic core of the reform remains the system of financial support. The Government has been granted a 24-month mandate to reorganise tax credits, selective subsidies and controls. The role of tax credit manager is introduced, whilst checks on the reasonableness of costs and on possible tax avoidance practices are to be strengthened.

Selective grants will prioritise first and second works, young filmmakers and high-quality productions, with restrictions on audiovisual projects exceeding an investment of 5 million. A specific scheme is reserved for independent producers.

Furthermore, from 2028, the tax credit for cinemas will be replaced by direct, tax-free grants, intended to support operations, the reopening of closed cinemas, refurbishments and the conversion of spaces into cultural venues. Priority will be given to areas where there are few screens relative to the population, and additional funding will be provided for historic cinemas.

The measure also aims to unlock credit. It provides for public guarantees of up to 80 per cent of loans and paves the way for the securitisation of grants, tax credits and future revenue from the sale of rights. It is also worth noting Article 12, which stipulates that ‘the provisions concerning the verification of non-compliance with tax obligations’ shall not apply to recipients of grants for the cinema and audiovisual sectors.

The classification of workers

The other half of the law concerns those who work on set. The structurally intermittent nature of work in the entertainment industry is recognised, and the relevant allowance has been redesigned: eligibility requires at least 51 days of contributions in the previous twelve months, with the allowance set at 80 per cent of average pay, rising to 85 per cent for those with at least 80 days. A fund of 10 million per year is also being established, from 2027 to 2030, for artists and crew members facing a pension crisis.

Finally, the project selection mechanism is changing. A committee of twenty experts, selected at random from a shortlist of thirty candidates and paid 35,000 euros gross per year, will award the grants. It goes without saying that the draw alone does not eliminate the risk of opaque decisions: it simply shifts that risk to the way in which the initial shortlist is drawn up.

It is a wide-ranging law – perhaps too wide-ranging. It promises certainty regarding timelines, but leaves much of the change to be determined by subsequent decrees. With all that this may entail.

Andrea BiondiVicecaposervizio
Luogo: Milano
Lingue parlate: Italiano, Inglese, Francese
Argomenti: Finanza, Media, Telecomunicazioni, Economia dell'entertainment, Innovazione
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