Press Release: State aid: Commission authorises €82 million of innovative film tax incentives; opens investigation into Italian digital cinema support

The European Commission approved under EC Treaty state aid rules Italy’s innovative €82 million package of film tax incentives until 31 December 2010. The incentives aim to stimulate investment from outside the film production sector into European cultural films and to support the distribution of such films. The Commission found that the incentives are compatible with the cultural derogation of the EC Treaty. The Commission also opened a formal investigation into a proposed 30% tax credit for installing digital projection equipment in Italian cinemas because it had concerns that the measure may mainly benefit large multiplexes which should need less support. The opening of an in-depth investigation gives third parties the possibility to comment on the proposed measure. It does not prejudge the outcome of the procedure.