ITALY

In order to be eligible, Italian taxes must be withheld.

All production costs related to the picture incurred by the Italian production service company may be considered as "eligible". Financial, insurance and guarantee costs may be considered up to a maximum of 7.5% of the overall production cost, and Producer fees and general company expenses are not eligible.

Italian line producer can apply for the tax credit starting from 90 days before shooting and up to 180 days after the production process in Italy is completed.

Application Process / Processing Cost

The tax credit is granted ten days after the following conditions have been met: 

• The work has passed the cultural test.
• The credit has been granted.
• The expenses have been verified.

The fee is €5,000 for costs up to €3.5 million, and €10,000 for costs above €3.5 million.

Producers can choose to apply for provisional recognition (if they are about to start the operation process in Italy or are still working on it) or for final recognition once the production process is completed.

• If they apply for a provisional recognition, the whole amount of the tax credit will be assigned but they can use up to 70% of it 30% will be available after the completion of the production process in Italy once the final recognition is approved.
• If the producer chooses to apply for the tax credit after the completion of the production process, they can immediately use 100% of the tax credit.

• Eligible production costs cannot exceed 75% of the overall production budget.
• Any expenses incurred in another EU country are to be treated as expenses incurred in Italy, up to a maximum of 1/6 of the 75%of the total film budget.
• Artificial Intelligence (“AI”) Restrictions and Disclosures - Yes
  - ATL Costs incurred in Italy relating to the use of AI are considered ineligible, except for the use of AI for special effects relating to the item "Main actors" (this provision concerns only the Italian executive producer).
  - BTL costs related to the us of AI are eligible
  - Required to disclose the use of AI (throughout the stages of production carried out in Italy using artificial intelligence.
  - Required to include specific clauses in the contracts between Italian executive production or post-production companies and writers, interpreters and performers of the work that permit their refusal to consent to the exploitation of their work/image/professional performance to train AI.