Two key German production incentives, the German Federal Film Fund (DFFF) and the German Motion Picture Fund (GMPF), have been extended for a year. The rebate on approved German production costs has also increasing to 30% for both schemes.
The changes were unveiled by minister of state for culture and media (BKM) Claudia Roth as part of the final readings of the new German Film Law (FFG) which was passed by in the Bundestag late on Thursday evening.
After consultations with chancellor Olaf Scholz and federal finance minister (BMF) Jörg Kukies, minister Roth said that the 30% rebate will be introduced from February 1, 2025.
The Scholz administration had now accepted that the initial plans for a three-pillar reform to Germany’s national film funding infrastructure would not be possible in the present legislative period following the end of the SPD-Green-FDP coalition at the beginning of November and the prospect of a general election on February 23.
In a statement, the administration said: “BKM and BMF will therefore swiftly continue the work the basis of the existing preparatory work in a federal-Länder working group so that the most comprehensive reform of German film funding in the past 20 years is continued in the new legislative period and an effective supplementary allowance law [i.e. a tax incentive scheme] can enter into force if possible on January 1, 2026.”
MInister Kukies added that “the German film industry is facing tough international competition [and] outstanding filmmakers need good framework conditions” and explained that the German government would “cushion the budgetary impact as we cannot afford to have even more talent moving away from Germany, even more production facilities lying idle and the German economy losing even more innovation and investment in a key creative and future-oriented sector.”
The DFFF and GMPF incentive schemes have recently supported projects such as The Assessment, Silent Friend, Woodwalkers 2, The Hero of Bahnhof Friedrichstraße and Dinner For Five.
Previously, producers of small and medium-sized film productions for cinema release could receive a grant of up to 20% of approved German production costs under the DFFF I scheme and this could increase to up to 25% if these costs exceed €8m.
Meanwhile German production service providers had been able to apply for up 25% of approved German production costs under the DFFF II scheme, with a cap of €25m per project, while the GMPF scheme for high-end series and TV/VoD films had offered rebates of between 20% and 25%.
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