Foreign film "tax rebate" approved by the French National Assembly

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Developed by the FICAM (Federation of Cinema and Audiovisual Industries) and the French National Film Commission, an amendment favoring foreign producers shooting in France has just been adopted unanimously by Parliament in the framework of the 2009 Finance Act.

This measure, adapted to the budget of foreign — including American — productions is in the spirit of existing European incentive systems. It is a tax rebate in favor of the executive producer established in France participating in the production of foreign works (fiction and animation) that are not eligible for financial support by the CNC (French National Center for Cinema).

10% growth as of 2009
The tax incentive of 20% of expenditures in the French territory, similar to the film tax rebate created in 2004 for French producers, will generate a growth of over 100 million Euros by 2009, and up to 200-250 million Euros in 2010 and 2011. The FICAM believes that this growth target in France should produce 480 shooting days of foreign films (compared to 120 today), generating 165 000 working days for film workers with the French “intermittent” status, thus benefiting “intermittent” employment and the technical film industry. French locations that are part of the national heritage, and the catering and transport sectors will also benefit from the effects of this measure.

€ 300 million impact induced
In a study conducted jointly with the National Film Commission and the French Agency for International Investments (AFII), the FICAM also assesses a gain due to an induced impact identified by international experts on tourism and the purchase of French products (whose image is portrayed in movies) that would produce an economic flow exceeding 300 million Euros.

A tax measure that pays more than it costs
The audited expert reports have shown that this growth directly linked to the attractiveness of the French territory will generate tax and social cost revenues of more than twice the cost of government financing (plus or minus 20 M Euros). In a particularly difficult economic and uncertain period, the FICAM welcomes the adoption of this measure of "common sense". It will allow us to bring together the strengths of our country : the quality of our heritage, our diversity of landscapes, the know-how of our technicians and of the whole chain of technical service industries. It will also offer French producers a source of additional income by offering their services as "executive production" to foreign producers.

Translated by Benjamin B
Source : Ficam