Prime ministerDominique de Villepin approved the measure at therequest of culture minister Renaud Donnedieu de Vabres.
The Sofica system was created in 1985 to encourage individualinvestment in film. Essentially film-financing companies, the Soficas raise money by offering substantial tax write-offsto investors.
The moneyis reinvested in film and television via interest-bearing loans.
A companyor an individual investing in a Sofica can write off upto 50% of tax on that investment. Individuals can also invest up to 25% oftheir income for a 100% tax deduction.
Over thepast few years, the government has steadily increased the cap for the Soficas in an effort to boost investment in independentfilm.
In orderfor a film to be eligible for Sofica financing, itmust in most cases be shot in the French language and a majority French production though itneed not shoot in
However, there is a reserve of 20% of the funding which can be invested in films not shot in French as long as they are shot in the language of the majority producing country and, of course, co-produced with France.