Italy’s parliament has unanimously approved a major overhaul of the country’s film and television framework, paving the way for a new cinema agency, a restructuring of public incentives and measures designed to attract more international productions.
However, significant details, including changes to the tax credit system, have yet to be determined.
Italy’s Senate gave its final approval to the legislation yesterday (November 4), with 123 votes in favour, none against and no abstentions. The vote concludes a bipartisan legislative process combining proposals originally put forward by the opposition Democratic Party, led by Elly Schlein, and the governing coalition.
The reform, which follows Italy’s 2016 cinema law, will establish a new Cinema and Audiovisual Agency, scheduled to begin operating on January 1 2028.
The body will take over operational and administrative responsibilities currently handled by the culture ministry’s Directorate General for Cinema and Audiovisual, including the management of public support schemes.
Although the agency will enjoy organisational, financial and managerial autonomy, the culture ministry will retain responsibility for political direction, strategic oversight and inspections.
The legislation also establishes a permanent 16-member Cinema and Audiovisual Forum, bringing together industry experts and representatives of professional associations, alongside a new 20-member commission responsible for assessing projects seeking selective public funding.
Culture minister Alessandro Giuli hailed the reform as a “historic achievement for Italian culture”, praising the cross-party agreement and its emphasis on transparency, independent filmmaking and the protection of creative workers.
Tax credits and international productions
Crucially, the new legislation does not immediately introduce new tax credit rates or eligibility conditions. Instead, the government will have up to two years from the law’s entry into force, expected by the end of 2026, to approve further legislation setting out how Italy’s film and TV subsidies and tax incentives will be restructured.
The measures envisage three-year planning, updated annually, with clearer application windows, deadlines for decisions and more predictable payment schedules.
For international film and television productions shooting in Italy, the potential benefits lie primarily in administrative simplification. The reform explicitly calls for measures to attract foreign productions and investment, streamline shooting permits and simplify the recognition of Italian nationality for international co-productions.
The new agency will also coordinate national policies aimed at attracting international productions and provide guidelines for Italy’s regional film commissions.
If effectively implemented, these provisions could make Italy a more straightforward destination for overseas shoots and facilitate international co-production arrangements. However, the reform does not itself guarantee more generous incentives for incoming productions, and its financial impact will depend on the subsequent decrees.
Italy’s current film tax credit currently offers a headline 40% on the eligible cost of a production, for a maximum of $23.4m (€20m) per company.
Independent filmmaking and cinemas
For Italian filmmakers, the legislation prioritises first and second features, emerging directors, independent producers and smaller companies, while promoting international co-productions and genre filmmaking, including horror, science fiction, action and fantasy.
The government is also tasked with introducing more accessible incentive procedures for television and online productions with budgets below €1.5m, alongside preferential measures and funding allocations for independent production.
Other provisions envisage a national programme for reopening and renovating cinemas, stronger support for independent distribution, and rules addressing artificial intelligence, including transparency and consent for the use of performers’ artistic contributions.
The legislation additionally delegates a review of social protections for entertainment workers, including unemployment-related benefits and pension arrangements.
However, the reform does not provide a general increase in production subsidy funding. Under existing legislation, the statutory minimum for Italy’s Cinema and Audiovisual Fund stands at €660m in 2026 and €650m in 2027, before falling to €500m annually from 2028.
Industry reactions
Despite the unanimous parliamentary vote, industry reactions have been divided.
The Coordinamento Autori e Autrici, representing six organisations including 100autori, ANAC, AIR3 and Writers Guild Italia, criticised the reform for failing to guarantee the agency’s effective independence and secure long-term funding.
In a statement, the organisations argued that the legislation had “ended up watering down the new agency’s real autonomy”, while reducing the influence of professional associations. They also criticised the withdrawal of proposed amendments in favour of non-binding parliamentary resolutions and warned of potential disruption from the agency’s planned 2028 launch.
By contrast, audiovisual workers’ union ASA welcomed the reform. General secretary Nicola De Toma praised the creation of the agency and consultative forum, while urging the government to move swiftly towards implementation.
ANICA president Alessandro Usai, speaking during a Senate hearing in October, stressed the importance of financial stability: “Regulatory and financial certainty is essential for companies to plan investments and compete in international markets.”
Audiovisual producers’ association APA has also raised concerns about the agency’s independence. Speaking at an October hearing, president Chiara Sbarigia warned that without clearer powers, the new body could become “a twin of the current cinema directorate, with the addition of a board of directors”, rather than an institution with genuine decision-making autonomy.
The government has pledged to move quickly on implementing the legislation, but the details of the revised incentive system, and the extent to which the reform delivers greater financial certainty for both Italian and international producers, remain open questions.
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