Posted: Fri., Mar. 28, 2008, 12:14pm PT

Foreign films await French rebate plan

Producers associations agree to the shelter

PARIS -- France may soon introduce a rebate for U.S. shoots.

Ficam, France's technicians association reached an agreement last week with its Ministries of Culture and Finance and members of parliament for a 20% tax rebate on foreign shoots' Gallic spend, says Thierry de Segonzac, Ficam president.

Crucially, France's powerful producers associations also agree to the shelter.

"At the moment, all lights are green," De Segonzac says. "But now we have to wait for parliamentary approval."

Rebates should be effective starting Jan. 1. But De Segonzac hopes for earlier parliamentary approval, maybe in May. 

Any film shoot not already receiving French subsidies from the Centre Nationale de la Cinematographie would be eligible for the rebate.

That rules out co-productions, but opens barn doors for U.S. or Japanese productions, as neither country has co-production treaties with France. 

To access rebates, films will face cultural tests, demanding above-the-line French talent or cultural elements.

But since foreign shoots tend come to France to take advantage of Gallic scenery or talent, that's not too difficult a requirement. Rebates will be capped at e4 million ($6.2 million) per film, but will also extend to Gallic animation and VFX houses, De Segonzac says.

Developed by Film France, the tax scheme seeks to resolve a conundrum -- Gallic film charms abound, but lensing there gets very expensive.

"People don't come here just for studios, but also landscapes, historical locations, lighting and technicians," says Dana Theveneau, development director at Nice's Riviera Studios.

The top tourist destination in the world, France saw 79 million visitors in 2006, while only 51 million visited the U.S., according to Richard Bower at the Marseille Provence Chamber of Commerce.

Big U.S. shoots have already taken advantage of many French icons: the Louvre ("The Da Vinci Code"), Eiffel Tower ("Rush Hour 3"), Versailles ("Marie Antoinette"), or Luberon hamlets ("A Good Year").

"They all belong to one category: films that absolutely need a French location they can't find somewhere else and is too big to be re-created on a soundstage," says Patrick Lamassoure, Film France managing director.

Many Euro countries -- the U.K., Ireland, Spain, Germany, Luxembourg, Hungary -- have implemented tax rebates or film funds for foreign shoots, sweetening the plunge of the dollar. But France has lagged behind. Parliamentary approval is no slam dunk, but does look likely.

The rebates' approval would mark a sea change in French state attitudes to cinema.

"French state aid for the industry has always been based on supporting French and European content, a cultural policy. The new scheme aims at creating employment," Lamassoure says. "Nicolas Sarkozy's government is more attuned to economic arguments."

The economic arguments for foreign shoot rebates are strong. According to one estimate, with rebates, foreign shoots, 80% from the U.S., would have spent $250 million more in France.

The rebates just might be able to stem recent losses, such as Disney's huge battle scene in "The Chronicles of Narnia: Prince Caspian," which considered shooting at Picardy's Pierrefont Castle. But Disney finally opted for a downscaled sequence at Prague's Barrandov Studios.


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