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The long-awaited law

The long-awaited law
The long-awaited law
The cinema and audiovisual sectors have a new Investment Fund
The long-awaited law
The long-awaited law | The cinema and audiovisual sectors have a new Investment Fund

The Italian Chamber of Deputies approved the bill on Cinema as a whole, thus allowing this law to come into force by the decrees in January 2017. It is an awaited reform for over fifty years and provides for the creation of the "Fund for the development of investment in the cinema and audiovisual sectors" completely independent to support the film and audiovisual industry and that will put an end to the discretion of the loans in the field of cinema and audiovisual. Funds will amount to 400 million euro per year, over 60% more than current funding, and will be introduced automated financial tools with strong incentives for young authors to invest in new facilities and safeguard cinema.

The fund is fed, on the French model, directly by the central government income already arising from the programming and television broadcasting activities, film distribution, film screening and provision of internet access services by telephone companies and telecommunications. Therefore, as from 2017, a fixed percentage (11%) of the corporate income tax and VAT revenue from these areas will form the basis for the calculation of state resources for financing the cinema and audiovisual fields. No new charge but a righteous "self-financing" mechanism of the production chain that is an incentive to invest and innovate and that dwarfs the current annual uncertainty over cinema funding: the new fund will never fall below 400 million euro per year .

The new Cinema Law abolishes also the ministerial committees for the allocation of funding under the so-called 'cultural' interest and introduces an automatic incentives system for the works of Italian nationality.

The project will concretely support the Italian film industry, considered a powerful vehicle for cultural education and promotion of the entire country.

To know all the changes introduced by the new law, please visit the Ministry of Cultural Heritage and Activities and Tourism's website: MIBACT

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