Entirely owned by the Film Commission Torino Piemonte, FIP is its financial arm, the operational tool which intercepts the interests of Piedmontese producers and translates them into investments in audiovisuals.
It is interesting to know that, in the past year, FIP’s activities resulted in the raising of around
€ 1 million, with a spin-off of more than € 2 million, through the relationship with 5 different companies in Piedmont (Banca del Piemonte, Altec, Gruppo Stat, Studio Lanteri, Mogar).
But possibly the most interesting thing is that these were low budget films, where the tax credit covered 50% of the budget, as Paolo Tenna, CEO of FIP emphasizes, and comments:
“We began to capitalize on the know-how accumulated, managing to also direct investments towards rst and second works and not just towards the big commercial projects”.
Growing up in the world of audiovisuals is what differentiates FIP from other tax credit players: “Being able to identify the characteristics of an individual project from an editorial point of view as well allows us to give it a more congruous financial value. In fact, even a debut work can be tempting to an external investor, if, for example, it has the potential to take part in a festival and, as a consequence, open up to revenues from international sales”.
With the implementation of the new cinema law, 2017 finds FIP ready for new challenges:
“the transferability of tax credits, introduced by the new cinema law, is an enormous innovation with regard to the rules governing tax credits, because”, announces Tenna, “it puts us in a position to be able to create a Fund”.
With the transferability of credits the producer-investor relationship is no longer compulsory for individual projects.
“ The fund,” explains Tenna, “can gather together the interests of various investors and can be diversified over several projects without having to present an individual project to each individual investor. The contract is between the producer and the fund which, in turn, can distribute the tax credit between the investors in proportion to their relevant shares”.
The setting up of the Fund offers at least two advantages:
“Now it is also possible to involve small and very small companies that can participate in the Fund with even just a minimum share; moreover, it is no longer necessary for the investor to have the necessary skills for evaluating an individual project: it is the Fund that invests and decides where to invest”