Germany Expands Rebate System for VFX Sector

Germany’s VFX sector is celebrating newly revamped guidelines of the country’s main subsidy program, which make it possible for big-budget animated and visual effects-heavy projects to secure rebates as high as 45% when they meet new minimum spend requirements.

The new rules do away with requirements that films have to be physically shot in-country to qualify for the German Federal Film Fund (DFFF) rebate incentive program. The two-tier DFFF system includes a funding pool, known as DFFF II, that is specifically aimed at international co-productions and big-budget domestic films.

Germany’s muscular VFX industry has for years lobbied for inclusion in the program, which until now has focused on production companies and physical on-location shoots. Instead of being linked to physical shoots, the new regulations require a simple €2 million ($2.3 million) spend in order to qualify for the DFFF II’s 25% rebate.

German regional funders FFF Bayern and MFG Baden-Württemberg already offer VFX support in the form of 20% rebates, so productions working with companies in the states of Bavaria and Baden-Württemberg  can now combine regional and federal funding for rebates of up to 45%.

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