Describe the main features of the policy/measure:
The aims of the Croatian Audiovisual Centre's Production Incentive Programme are: to encourage inward investment, to promote Croatia as a film location internationally and to connect Croatian cultural workers with their international peers. Croatia introduced Production Incentive Programme in 2012. It is available to international and local filmmakers in the form of a rebate on qualifying Croatian spend. As of July 2018, cash rebate has been raised to 25%, with additional 5% for productions filming in regions with below average development, that is, in Areas of Special State Concern (Područja posebne državne skrbi-PPDS).
What are the results achieved so far through the implementation of the policy/measure?:
In the period 2016-2019, 43 projects were filmed in Croatia with the local expenditure exceeding 90 million euros. In the same period more than 21 thousand of Croatian cultural workers (professionals, interns and other workers) have been engaged in international productions, which ensured higher mobility of film workers, enhancement of the level of their professional competences and increase of employment in the film sector. As expected, the number of productions, the level of local expenditure and the number of employed people continued to increase through continued implementation of the measure.
Financial resources allocated to the policy/measure in USD:
2019 - 11,7 million USD
Partner(s) engaged in the implementation of the measure:
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Has the implementation of the policy/measure been evaluated?:
If yes, what are the main conclusions/recommendations?:
The evaluation of the measure for period 2012-2018 was done by the Institute for Public Finance (IJF) in Zagreb. The direct economic impact of 58 co-financed audio-visual works excluding the employment effect, amounts to HRK 226,7 million, which is 76% more than the amount of incentives received. Through local spending on projects included in the Incentive Measure Program in Croatia, a total of HRK 131.4 million has been paid directly into central and local government budgets over the seven-year period. This is 19.4% of the total local consumption of these projects. When the costs of taxes, contributions and fees paid are correlated with the amount of incentives received, it can be concluded that the entire amount of paid incentives for the production of audio-visual works is directly returned to the budget through the channels of paid taxes and contributions.