Teuton tax break models Blighty
Producers to receive up to 20% on German spend
Producers will be reimbursed 15%-20% of their German spend without having to go via a financing house.
Amount available to the industry as a whole is capped at E60 million ($76.5 million) annually.
Rebate is available as of Jan. 1, and the program will run through the end of the parliamentary term in 2009.
The rebate model replaces the tax-driven Medienfonds, which did not include a German expenditure clause and were abolished last year.
The Medienfonds were of little benefit to the Teutonic biz, with most of the coin going to U.S. pics.
"This will make the German film industry more competitive internationally," said culture secretary Bernd Neumann, who has been pushing for a tax incentive. "The new model will have an immediate effect on the work of German producers and film studios."
Details such as minimum German spend and other qualifying criteria still need to be carved out, but if the system follows the U.K. model, it will include a cultural test and a minimum expenditure of 25% of the budget in Germany.
It remains to be seen what will happen if the $76.5 million is used up before the end of any year.
Industry reaction was generally positive to Wednesday's news.
Georgia Tornow, topper of Teutonic producers org Film20, said: "Now we will be ready to compete with a model that gives German producers a level playing field."
She is lobbying the government to allow producers to file applications this fall so that the incentive can kick in as soon as it becomes effective.
