Film, TV & Video Game Tax Credits Generated $3.2 Billion Worth Of Extra Spending In France From 2017 to 2021 – EY Consulting Study

deadline.com:

Key French tax credits aimed at the cinema, audiovisual and video game sectors generated $3.2 billion (€2.9 billion) worth of extra spending in France from 2017 to 2021, according to a study released by EY Consulting.

The report commissioned by France’s National Cinema Centre (CNC) focused on four incentives: the cinema tax credit, offering a 30% rebate on eligible spend; the 25% audiovisual tax credit; the 30% Tax Rebate for International Productions (TRIP), to which an additional 10% can be added if VFX or animation work is done on the territory, and 30% video game tax credit.

Breaking down the contribution of each the incentives, it said the cinema credit had generated €373 million ($414 million) in extra spending; the audiovisual credit, €1.3 billion ($1.4 billion); the TRIP, €1.1 billion ($1.2 billion), and the video games incentive, €116 million ($129 million) from 2017 to 2021. “Each of these measures has achieved its set objectives… and for a relatively low net cost given the additional revenue, in particular fiscal, that they generate,” said the CNC in a statement accompanying the release of the report.

The study found that for every €1 ($1.1) given as a tax credit, the cinema incentive generated €6.40 ($7.12) in local spending and 76 euro cents (85 cents) in fiscal receipts, while for the TRIP, this came in at €3.99 ($4.44) and 44 euro cents (48 cents).