One year after Italy launched tax credits offering foreign productions filming in the country up to 25% of a pic’s budget, capped at $6.5 million, Hollywood is heeding the call.
Sony and Studio Canal’s Angelina Jolie and Johnny Depp starrer “The Tourist,” currently shooting in Venice, has tapped into the Italo scheme. Earlier beneficiaries include Summit’s “Letters to Juliet” and the Weinstein Company’s “Nine.”
The tax credits, which apply to local and international productions shooting in Italy, are structured as an immediate return, rather than a rebate, on production expenses — provided they do not exceed 60% of a film’s overall budget.
“Among the 114 applications for the tax credits, which are also avaliable for local productions, seven come from foreign countries,” said Italian legislator Gabriella Carlucci on the Croisette to tubthump the Italo incentives.
Approximately ?80 million in tax credits have been dished out so far. Of these, about ?10 million have gone to foreign productions.
The Italo incentives for foreign productions are payable through an Italian executive producer.