Tax credit video games, the sector asks for certainties from the Ministry of Culture to unlock the 2025 funds

The Italian video game industry finds itself having to redefine its financial strategies due to the failure to start the 2025 session of the tax credit, a measure which, despite the already foreseen allocation of 12 million euros, it is not yet accessible to companies in the sector. The situation pushed IIDEA, the trade association representing the sector in Italy, to send an urgent communication to the Minister of Culture Alessandro Giuli and the Undersecretary of State Lucia Borgonzoni to clarify the implementation times and future prospects of this fiscal shock absorber.

The absence of a certain calendar for the request windows risks slowing down a production machine which has demonstrated constant growth from 2021 to today, consolidating the long-term planning of companies and the development of employment levels. The statistical findings over the four-year period just concluded highlight the economic impact of the measure: between 2022 and 2025 the number of national companies increased by 25%, internal workers recorded an increase of 17% and the overall turnover recorded a progress of 36%.

This trend has favored the birth of an industrial fabric characterized by a strong youth component and a renewed planning capacity, which projects onto the market over 80 new titles planned for the next two years. Testifying to the sustainability of the instrument are the financial statements of the four previous sessions, during which, in response to tax credit requests for approximately 40.7 million euros, companies activated direct investments exceeding 204.5 million euros, confirming a high leverage effect on the economic system.

The operators’ concern is linked to the need to plan investments within a framework of stability, as underlined by Thalita Malagò, General Director and CEO of IIDEA: Over time, the video game tax credit has proven to be an effective instrument of industrial and cultural policy, capable of attracting international investments, supporting qualified employment and promoting the growth of Italian companies. The continuation of the current situation is therefore worrying. Companies have now integrated the measure into their operational and financial plans and need certain times and clear prospects to continue investing and competing at an international level”.

In addition to the immediate release of resources for the years 2025 and 2026, the analysis of the category representatives highlights two urgent bureaucratic issues. The first concerns the expiry, set at the end of 2026, of the European Commission’s authorization for the validity of the incentives; the lack of official feedback on the start of renewal practices in Brussels risks creating a regulatory vacuum starting from 2027. The second point raised concerns the very structure of public support, with the proposal to combine the tax credit with direct contribution mechanisms, deemed more suitable to support start-ups and small emerging development teamswhereas the current model mainly favors the more structured industrial realities. The national framework fits into a global context in which competition is intensifying, given that nations such as France, the United Kingdom, Ireland and Germany are strengthening their dedicated funds to attract large production studios, while the European Union is defining the future European Strategy for Video Games to stimulate technological innovation at a continental level.

By Editor

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