The corrective decree could finally see the light: the Ministry of Culture, in collaboration with the Dicastery of the Economy, aims to modify the Interministerial Decree no. 225 of 10 July 2024, which regulates the tax credit for cinematographic and audiovisual productions.
Because the decree had not liked
A version of the text would have already been transmitted to the MEF, with the aim of quickly obtaining the green light for publication. An acceleration made necessary by the imminent hearing to the TAR, scheduled for the beginning of March, in which the appeal presented by some companies against the reform of the tax credit introduced last summer will be examined.
A first draft of the corrective decree had been prepared at the end of December, but had remained in stall due to the opposition of Mediaset And Rai. The two broadcasters contested the rebalancing of the rights on the works between manufacturers and client televisions, considering it penalizing for them. In the initial version, in fact, the manufacturer would have maintained all pay TV and VOD rights (video on demand) in the event that the work had been exploited primarily in the free-to-air, with the possibility of giving in only in a non-exclusive way Fvod (Free Video On Demand) and Avod (Advertising on Demand) rights to Broadcaster.
The new draft
In the new version of the decree, the share intended for the manufacturers has been reduced: if the work is transmitted in the first round in clear or on VOD services not linked to subscriptions, the manufacturer will keep at least 50% of Svod rights (subscription Video on demand) and the totality of Tvod rights (Transactional Video on demand) and Pay TV, but with a holdback, or a bond of non -use, maximum six months from the airing or from the conclusion of the season , in the case of TV series.
The situation is different in the event that the priority rights are those Pay TV, Svod or Tvod: In this scenario, the manufacturer will fully maintain the free TV, Fvod, Avod and those catch rights related to clear transmission. However, the Holdback period in this case will be extended up to a maximum of 18 months from the transmission or the end of the series of the series, compared to the 12 months provided for by the current legislation.
Changes to the decree
One of the main changes of the corrective decree concerns the distribution requirements, with the elimination of the obligation to enter into an agreement with a “primary film distribution company”. This clause had been the subject of criticism, since they are feared as an insurmountable obstacle for many independent producers.
Another significant change concerns financial resources: currently, to access the tax credit, it is necessary to demonstrate that at least 40% of the cost of production of the cinematographic work is covered by private resources (percentage that rises to 50% for television works and web, and drops to 30% for documentaries, animation and short films). The corrective decree eliminates this necessity. In addition, a limit to public resources that can be assigned is introduced, setting a 80% roof the overall cost of the work.
Finally, the obligation for the manufacturer to reinvest a part of the net proceeds of the work (after having covered the production costs) in the development, production or distribution of “difficult” works within five years from the concession of credit. This reinvestment must be proportional to the recognized tax credit. In the event of non -fulfillment, the manufacturer company (and other companies that include members, administrators and legal representatives of the defaulting company) cannot request credit for other audiovisual works in the following five years. This measure has the intention of fighting any abuse.
