Iceland’s Film Tax Incentive Grows to 35 Percent – The Hollywood Reporter

Hollywood is considering a major new document from Iceland.

Iceland’s Film Commission announced on Thursday that it is increasing tax breaks for films and TV projects shooting in the country from 25% to 35%, propelling it to the top of international filming locations for incentives. . Productions eligible for uncapped credits will be reimbursed for all costs incurred in Iceland.

Only productions that run for at least 30 working days in the country, create 50 local jobs and have a minimum budget of $2.7 million will be eligible for the 35% incentive. Other productions can still claim a 25% tax credit.

In 2016, Iceland increased tax relief from 20% to 25%. With the latest bump, the country is putting itself in a position to attract major productions from countries in need of stage space. Iceland’s tax incentive program compares to that of the UK, Canada, Ireland and Italy, among other countries that attract big productions due to their strong credits. tax. Ireland, which provides a rebate of up to 37%, and Italy, which provides a refundable credit of up to 40%, are among the few countries that offer more incentives to the entertainment industry.

“I would say 35% definitely puts Iceland at the top of European and international incentives,” says Joe Chianese, senior vice president and head of practice at Entertainment Partners, a Los Angeles-based group that advises businesses and state film offices on how to set up and structure tax incentive programs. “In addition to the fact that they have no annual cap, their program opens up the possibility of attracting many larger productions.”

One question will be whether Iceland has the film infrastructure to support major productions. Icelandic production company RVK Studios is building two new stages this year, bringing the studio’s total to three.

“Iceland has invested in infrastructure over the past few years, and our resources make the country particularly attractive for major blockbuster films,” says Einar Hansen Tómasson, Icelandic Film Commissioner. “Experience is key when it comes to keeping these big productions competitive, on time and on budget. Our highly trained teams can handle everything from location scouting to post-production, and we can support sustainable production practices using Iceland’s renewable energy sources.

Chianese says one of the perks of drawing major productions will be training the local Icelandic team on bigger projects.

Major projects that have shot in the country include The Northman, Star Wars: The Force Awakens, Rogue One: A Star Wars Story, Game of Thrones and the witcher.

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