What's Happening?
France is implementing a significant reform to its tax incentive for international film and TV productions, known as the Tax Rebate for International Productions (TRIP). This reform, approved by the French government and parliament, will now include below-the-line
costs such as the salaries of non-European actors and hotel stays, qualifying for a 30% rebate. This rebate can increase to 40% for productions spending over €2 million on French visual effects work. The tax credit is capped at €30 million per project. This move comes after lobbying efforts by industry leaders, including Netflix co-CEO Ted Sarandos and Paramount Skydance CEO David Ellison, who emphasized the need for France to remain competitive in attracting big-budget productions. The reform is pending final approval from the European Commission and is expected to be implemented soon.
Why It's Important?
The expansion of the tax rebate is crucial for France to maintain its competitiveness in the global film industry, especially against rivals like London, Prague, and Budapest. By including actors' salaries in the rebate, France aims to attract more international productions, which can significantly boost the local economy through increased spending on hotels, local services, and job creation. The reform is part of President Emmanuel Macron's broader France 2030 plan, which includes substantial investments in infrastructure and training to support both local and international productions. This initiative is seen as essential to counteract the recent decline in TRIP-approved productions and to revitalize France's appeal as a prime shooting location.
What's Next?
Once the European Commission grants final approval, the new tax rebate measures will be implemented, potentially within weeks. This could lead to an increase in international productions choosing France as a filming location, thereby enhancing the country's economic benefits from the film industry. Stakeholders, including local artisans, merchants, and the hospitality sector, are likely to see increased business opportunities. Additionally, the reform may encourage further investments in French film infrastructure and talent development, aligning with the goals of the France 2030 plan.
