France supports the creation of video games on the territory, in several ways. Among the possible aids, there is the Video game tax creditan initiative that promotes projects with a marked script or artistic direction, and the plan France 2030, voted on at the start of the year. Cédric O, former Secretary of State for digital, campaigned to make the CIJV more accessible, to no longer only promote titles focused on narration and thus give a boost to more artistic projects or projects designed for mobiles.
His efforts paid off, because the government has just announced via a decree that the modernization of Video game tax credit had been validatedright in time for the opening of the Paris Games Week 2022. The financing program is extended until December 31, 2028 and will allow you to benefit from a tax credit corresponding to 30% of the production expenses of a new game. To take advantage of it, you will have to go through a selection and promote original creations in terms of visuals, narration or music, as well as technological innovationand shedding light on French heritage could be a plus.
At the initiative of the Ministry of Economy, Finance and Industrial and Digital Sovereignty and the Ministry of Culture, the Prime Minister signed a decree today aimed at modernizing the video game tax credit system by making evolve its cultural scale to make it more suitable for current video games. This development is accompanied by an extension of the video game tax credit until December 31, 2028.
The video game tax credit system, the main tool for public funding in this sector subject to very strong international competition, allows companies creating video games to benefit, subject to conditions, from a tax credit corresponding to 30 % of new game production spend.
Since its implementation in 2008, this mechanism has benefited more than 150 video game development studios that are part of the living and plural fabric of companies in the service of creation and has contributed to financing more than 370 projects.
In 2021, 38 new projects received approval, for a total amount of eligible expenditure of €155 million, and a tax credit of €43 million. Since 2017, more than €220 million have been deducted, via this video game tax credit, in support of the French industry.
The eligibility of the games is based on a “Contribution to the development of creation” scale, known as the “cultural scale”, which is based on various criteria making it possible to frame the cultural character of the video game. The previous version, designed in 2007 when the device was created, no longer corresponded to the current challenges of the sector and was modernized following work carried out by the National Center for Cinema and the Moving Image (CNC) and the Directorate General for Enterprise in conjunction with professionals in the sector.
“In France, we are fortunate to benefit from one of the richest video game ecosystems in the world. This adjustment of the tax credit dedicated to it will allow us to better support innovative projects and maintain our lead in this area. At a time when new technologies such as the metaverse and virtual reality are being developed, this tax credit is one of the pledges of French digital sovereignty,” said Bruno Le Maire, Minister of the Economy, Finance and Industrial and digital sovereignty.
“I am delighted with this change in the video game tax credit, which marks a new stage in our policy of supporting a booming sector that creates jobs and brings cultural vitality. This modernization makes it possible to amplify our support for independent players and new talents who will help position France at the top of video game producing countries,” said Rima Abdul Malak, Minister of Culture.
“The modernization of the cultural scale is accompanied by an extension of the CIJV until December 31, 2028, which will give all the tax predictability to promote the localization of productions in France and support the development of the most ambitious games which require a long time. . It better takes into account the new business models and innovations that are driving the sector, such as cloud gaming, virtual reality and blockchain, and are set to play a central role in the construction of metaverses” says Jean-Noël Barrot , Minister Delegate in charge of Digital Transition and Telecommunications.
Characteristics of the new scale
In practice, the new scale includes a more clearly substantiated cultural objective and produces a genuinely incentive effect by enshrining in particular the principle of original creation.
Thus, points are awarded to projects which justify the creation of a new universe and a new concept, and which demonstrate original creation in visual, narrative and/or musical terms.
Points can also be awarded for the innovative character of the game, technological innovation being an integral part of the dynamics of creating a video game. It will be better suited to mobile video games which have taken an important part in the production dynamics of French studios.
Finally, this new scale maintains a heritage criterion (inspiration from European heritage or adaptation of a work), as well as criteria relating to the European character of video games in order to favor projects which present a strong European identity, in content, the choice of languages, or within the production team.
The new, modernized scale makes the video game tax credit system more suited to current games, more predictable by formulating perfectly objective and well-defined criteria, and simpler.
This is a new measure in the Government’s strategy to make France a leader in video game production:
- A range of cross-cutting innovation support mechanisms: research tax credit, young innovative company status, French Tech grants, non-sector financing tools operated by Bpifrance;
- Reinforcement of the video game aid fund operated by the CNC (€5M per year);
- Funding for innovation and training through the measures of the France 2030 plan;
- Creation of an accelerator training the leaders of future nuggets of French video games and financed by Bpifrance and the CNC;
- Free training on sexual and gender-based violence provided by the CNC for an exemplary industry on societal issues;
- New actions to promote the international attractiveness of France (eg French pavilion at Gamescom in Cologne financed by Business France and the CNC).
The objective is therefore always to help French creators to become the leading European producer of video games, ahead of the United Kingdom and Germany.