The maximum limit of request of tax credit in Italy will increase by 800,000 euros in three years up to 30% for companies producing recordings, musical videograms and live music. FIMI (Federazione Industria Musicale Italiana), the Italian association of record companies, announced it today with a press release.

The tax credit in music in Italy

Each company will be able to request and obtain a tax credit over a three-year period for a maximum of 2 million euros. The previous limit was 1.2 million euros. This was introduced by an amendment to the Italian Tax Decree reformulated by the government and approved by a large majority.

This money can be claimed for recording costs, mixing, making videos, paying/licensing copyright and other A&R expenses.

The amendment follows the result of the total credit collected between 2015 and 2022 with an equal distribution between the repertoire of the majors (51.6%) and the repertoire of the independent labels (48.4%), for a total of 298 beneficiary works.

FIMI’s comment

For FIMI, it is an important result that rewards the success of the Italian repertoire in recent times, up by 20% in just 10 years thanks to the growth in investments by record companies.

“Recent studies on the sector have shown that the average investment of a record company reaches 29.7% of revenues. It is one of the highest percentages in research and development among all industrial sectors,” says Enzo Mazza, CEO of FIMI. “In Italy, this is particularly significant because it has been focussed on new artists for years. It is very important that the Ministry of Culture and in particular the undersecretary Lucia Borgonzoni, under whose ministry the legislation on tax credit falls, has extended the threshold per company. This recognizes the importance that the industry has in the research and development of Italian music. We are also grateful for the efforts of President Marti who supported the amendment.”

PAOLOOO