France has overhauled its tax incentive for international productions to include actors' salaries, aiming to compete with cities like London and Prague for big-budget Hollywood films and TV series. The reform, approved after lobbying from industry leaders, offers a 30% rebate on qualifying expenses, rising to 40% for projects with significant French visual effects work. This change is expected to boost the local economy amid a challenging global production landscape.
France is enhancing its appeal as a filming destination through a significant update to its Tax Rebate for International Productions (TRIP). The reform now encompasses below-the-line costs, such as salaries for non-European actors and hotel accommodations, qualifying them for a 30% rebate that increases to 40% for films spending over €2 million ($2.3 million) on French VFX. Each project is capped at €30 million ($35 million) in rebates.
The measure awaits final approval from the European Commission and could take effect soon. Notably, the fourth season of HBO's 'The White Lotus' is set to film at the Château de La Messardière in Saint-Tropez but might not benefit from the expanded incentive due to its timing.
Gaëtan Bruel, president of the National Film Board (CNC), emphasized the necessity of these changes during the Paris Images showcase. "This reinforcement therefore corrects a loss of competitiveness with our neighbors and puts us back in the game," Bruel stated. He highlighted a decline in TRIP-approved productions, from 100 in 2022 to 55 in 2024, attributing it to a "weakened industry" and reduced global volumes.
The push for reform involved key figures like Netflix co-CEO Ted Sarandos and Paramount Skydance CEO David Ellison, who lobbied French President Emmanuel Macron. Ellison discussed it last month in Paris amid his bid for Warner Bros. Discovery, while Sarandos raised the issue at the Choose France summit in May 2024.
Under Macron's France 2030 plan, investments in infrastructure and training have doubled annual production spending to €3 billion from €1.5 billion over the past decade. Series like 'Emily in Paris,' 'Franklin,' and 'The New Look' have showcased French talent. However, Bruel warned of ongoing "turbulence" from market contraction and competition, making the rebate extension vital for economic benefits including jobs and local revenue.
