French Cinema and Moving Image Code
In forceI. - For delegated production companies, the amount of the direct allocation is equal to 25% of the amount invested. This rate is increased to 50% for works in the animation genre.
II. - For other production companies, the amount of the direct allocation is equal to 15% of the amount invested. This rate is increased to 25% when:
1° The production company meets the following conditions:
a) It has produced at least one cinematographic work, as a delegated production company, during the five years preceding the application for investment approval;
b) It does not hold, directly or indirectly, as a transferee or agent, exploitation rights for the marketing of the cinematographic work. Exploitation rights held indirectly by a production company are understood to be those held by a company controlled by the production company or by a person controlling it;
c) Not be controlled by a television service publisher or by a publisher of on-demand audiovisual media services or by a person controlling a television service publisher or a publisher of on-demand audiovisual media services;
d) Not control a television service publisher or an on-demand audiovisual media service publisher;
2° The cinematographic work for which the sums are invested meets the following conditions:
a) It must be co-produced by at least two production companies other than the delegated production company or companies, which meet the conditions set out in 1°;
b) It must not be the subject of more than one of the following types of funding:
- selective pre-production production aid;
- a contribution of more than €200,000 from a non-cinema TV service publisher;
- a contribution of more than €200,000 from one or more cinema TV service publishers;
3° The cumulative amount of the sums invested in the cinematographic work concerned by the delegated production company or companies represents more than one third of the total amount of the sums invested by all the production companies, excluding the sums invested by the delegated production company or companies for the preparation of the work, except where they were invested in the year during which the investment authorisation was granted.
The option for production companies to invest the sums entered in their automatic account for the benefit of the 25% rate may be exercised up to a limit of €200,000 and three cinematographic works, per financial year and per company. For any one film, the sums invested by each production company may not exceed €100,000, except where they do not exceed 5% of the budget for the film. The 15% rate applies to sums invested in excess of the aforementioned thresholds.
