Italian tax credit recognizes video games as cultural works

Italian Minister of Cultural Heritage Dario Franceschini signed a decree officially equating video games to works of art, making them eligible for the same tax credit benefits as films, video art, and music videos. The measure grants a 25% tax credit on production costs for video games recognized as having cultural value by an examining commission, up to a maximum annual amount of 1 million euros. Beneficiary companies must be based in the European Economic Area, be subject to taxation in Italy, and have a minimum share capital and net equity of at least 10,000 euros each. At least the amount of the tax credit must be spent within the EEA. The tax credit combined with other public support cannot exceed 50% of the eligible cost. The decree was issued jointly with Economy Minister Daniele Franco. Franceschini stated that video games are the fruit of creative ingenuity and deserve support like cinema and audiovisual works. He noted that Italy's video game sector is growing exponentially, with many startups founded by people under 30 producing high-quality products and attracting international productions. The measure will be submitted to oversight bodies and then notified to the European Commission for approval. Once registered, it will be available on the MiC website. This differs from the First Playable Fund, a 4-million-euro fund established in 2020 to support startups, software houses, and SMEs in the digital entertainment industry.