The highly anticipated rules for cinema and audiovisuals, which include the new tax credit in Italy, were the main attraction of the third and final day of the AVP Summit in Calabria. On stage, Nicola Borrelli – Director of the MiC’s DG Cinema and Audiovisual – was joined by Agnieszka Moody of the British Film Institute and Daphne Lora of France’s CNC to compare the financing systems of the UK, France, and Italy.
The British Film Institute, founded in 1933, is about to celebrate a centennial. The CNC, established in the 1940s, has supported national cinema and audiovisuals, creating an industry model for the French industry that has been envied by other European countries. Italy used this model as an example when creating its 2016 cinema law and its subsequent integrations.
New tax credit and changes to the rules for cinema and audiovisuals
“Our Italian system has ‘many similarities with the English and French systems,’” Borrelli pointed out, adding, “We are reviewing our support system, starting with the tax credit. We are doing this because it is necessary to adjust certain mechanisms that have not exactly aligned with the legislator’s intentions. An advanced draft has already been sent to the other Ministries. I hope we will get a response within the week, and immediately after, with a few minor adjustments, we will finally have the definitive version of the tax credit.”
Italian audiovisual producers are indeed eager to learn about the new rules that are nearing completion, as the wait has caused production slowdowns recently. “The adjustments we are working on are not intended to save on resources but rather to rationalize and avoid waste and abuses, which, in some -though limited- cases, have occurred,” Borrelli continued.
The international formula of the Italian system
The formula of the Audiovisual Producers Summit is based on the involvement of international partners who add value to the initiative, creating new ideas through the exchange between Italian and international entities in the audiovisual sector. Borrelli’s speech at the event was particularly aimed at the international audience, emphasizing the centrality of international attraction for Italy’s funding and incentives for cinema and audiovisuals.
During the event, Borrelli also emphasized the importance of public support for all phases of the production chain for projects with Italian nationality, whether these are produced 100% by Italian producers, realized under co-production agreements (currently active with 30 countries), or under the Council of Europe’s convention on co-productions, which still includes the UK.
In essence, producers from all countries can collaborate with Italian producers and have their works recognized as Italian if they meet the legal requirements.
An international producer partnering with an Italian producer for an Italian project can access all the incentives provided by the Cinema Law.
Borrelli added: “In the tax credit, we do not have particular expenditure distinctions, unlike the French system, so everything that falls under the production cost of a given work in Italy qualifies for the 40% benefit. It must be handled by an Italian executive production or post-production company. The only requirement is at least one day of shooting in Italy, and we set a maximum limit of €20 million per company, not per title, meaning the same work can be realized in a pool, as has happened in the past, by several Italian executive producers, and can they can all access those resources. Thanks to this approach, many significant works have been realized in Italy in recent years. In our strategy to attract international investments, we also pay attention to the tools reserved for Italian works. Indeed, many international projects realized in Italy in recent years have benefited from the tax credit reserved for Italian series.”
Attraction of international investments in the new tax credit
Regarding the new measures for international partners, Borrelli added: “We are not planning major changes for the section dedicated to the attraction of international investments as we do for the tax credit for national production. Just minor adjustments. Unlike the French tax credit, we also recognize non-European entities, for which we will likely propose a reduced rate to equalize it with the substitute tax these entities pay in Italy. We plan to set a minimum spending threshold on Italian territory, which is not currently required, and we aim to further enhance the post-production sector, for which some adjustments have been necessary.”
Concluding sessions of the AVPSummit 2024
Following the new tax credit and the new rules for the industry in Italy, the final day of the AVPSummit continued with a series of crucial appointments to encourage producers to create content aimed at the international market, not only for series but also for films.
A positive balance for Rai Fiction, which has seen a 50% increase in sales since 2019, as stated by Director Maria Pia Ammirati. She also emphasized the local approach of the public service in the series production which have been highly appreciated abroad, becoming glocal while being deeply Italian in culture, mood, and language. Titles such as “Imma Tataranni – Sostituto procuratore,” “Il paradiso delle signore,” “Doc – Nelle tue mani,” and the successfull The Sea Beyond (Mare Fuori) (sold in 40 countries and potentially having a Spanish and American version) are among the most beloved products abroad. Therefore, it is crucial to forge partnerships with foreign players. My Brilliant Friend (L’amica geniale) is co-produced with HBO, and the fourth season, directed by Laura Bispuri, will air in November. While Rai Fiction is working with Finland on a very Italian title like “Torna a Surriento.” The real challenge in co-productions is identifying products with cross-cultural appeal despite cultural and audience differences.
A different approach for Mediaset, whose Fiction Director Daniele Cesarano declares a marked pop-soapish touch with tones of melodrama and rom-com.
Discussing about export, Paolo Del Brocco recalled the appreciation of Italian cinema abroad: Io Capitano by Matteo Garrone, an Oscar nominee, has been acquired in over 50 countries, and even a low-budget title like Gloria!, Margherita Vicario’s debut film, was bought by 25 countries after its premiere at the Berlinale. Three major events have changed the landscape in recent years and impacted the global box office: the pandemic, the advent of streamers, and the strikes in the United States.
The concluding session of the Summit focused on the U.S. situation, with a roundtable discussing the current challenges and prospects for reshaping the future of Hollywood studios. An exchange on possible models for innovating and sustaining the major U.S. studios. Among the topics disccussed, creating content that can represent the diverse communities coexisting in the U.S., investing in training new generations of screenwriters with innovative tools, and reaching increasingly diversified targets. According to U.S. producers, there is still a strong demand of great character-driven stories back to cinema that can inspire the American public. Participants included screenwriter John August (WGA), DeVon Franklin, President and CEO of Franklin Entertainment, Neils Juul, CEO of Not Fat Ego, Lori McCreary, CEO of Revelations Entertainment, Veronica Sullivan, Senior Vice President of NBC Universal, and producer Gary Lucchesi, Partner at Revelations Entertainment and President Emeritus of PGA.
In conclusion, the three-day Audiovisual Producers Summit addressed several crucial topics for the industry, not only audiovisuals but also cinematographic, with significant participation of producers, international guests, and various professionals involved in the program.
The Summit has proven to be a format destined to grow, becoming an unmissable appointment for the industry. The AVP Summit is an APA format—Associazione Produttori Audiovisivi—organized with the support of MiC—Ministero della Cultura, Direzione Generale Cinema e Audiovisivo, MAECI—Ministero degli Affari Esteri e della Cooperazione Internazionale/ICE, and the Fondazione Calabria Film Commission, in collaboration with Cinecittà, MPA—Motion Picture Association, PGA—Producers Guild of America, CNC—Centre National du Cinéma et de l’image animée, Unifrance, and BFI—British Film Institute.
Read the original version of this article in Italian on Cinema & Video International and Italian Film Commissions.
