Argentina is poised to introduce a new law which will create tax shelters for companies investing in cinema and other cultural endeavors, along the same lines as the Brazilian model.

The so-called Ley de Mecenazgo (Sponsorship Law) will be put forward in March for final deliberations by the government.

Under the draft proposal, spearheaded by parliamentary deputy Silvia Vazquez, private companies will be able to invest as much as 3% of their taxes in film production. Among the first films chosen to benefit from the new legislation will be The Burning Tree (El Arbol En Llamas), the directorial debut of Oscar-winning Argentine art director Eugenio Zanetti which is slated to start shooting in April.

The new law will further spur a boom in Argentine film production. A record 46 domestic features were released last year, raising the market share of local cinema to an impressive 20%.