Down with the video game tax credit?
It's back-to-school time for industry, and a recent report, simply titled "Spending Review: Aid to Businesses," written by the General Inspectorate of Finance, casts a gloomy shadow over the end of the year. The IGF recommends, among other measures to reduce the public deficit, the elimination of the Video Game Tax Credit (CIJV).
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In this three-page fact sheet, the rapporteurs note that there is no specific evaluation of the tax credit to assess its effectiveness in maintaining studios in France (a measure regularly demanded by the industry), and that other support mechanisms exist to mitigate the impact of its potential discontinuation (aid funds, loans, guarantees, etc.). The IGF also portrays the sector as prosperous and dynamic, thus seemingly irresponsibly ignoring all the economic complexities of such a specialized and unique industry.
The SNJV, with the support of all regional associations including Game IN, is taking a stand to defend French companies, and Plaine Images can only agree: the CIJV generates more revenue than it incurs, and several studies demonstrate its positive impact on studios' turnover. The idealized image of a booming industry is a far cry from our daily reality as support providers; small independent studios as well as industry giants need this mechanism to alleviate significant production costs.
Let's not forget that video games remain the world's leading cultural industry, and that the video game sector in France is resilient, thanks in particular to the CIJV (French Video Game Trade Associations). Market demand is constantly increasing, and the supply of video games is intensifying accordingly: therefore, staying competitive in an exponentially growing market is a constant challenge.
A recent parliamentary report (May 2024) noted the beneficial effects of the CIJV (French Video Game Investment Center) on the industry: the CIJV is widely distributed across the country, with the emergence of genuine regional video game hubs, including the Hauts-de-France region. The rapporteur noted that the program initiated a positive dynamic across the country, enabling France to position itself as a competitive and innovative player on the international video game scene… and concluded that “the CIJV is essential to the development of the French video game industry, in a context of very strong international competition.”
A glimmer of hope: we learn that the Directorate General for Enterprises (DGE) has expressed its opposition to the abolition of the scheme, proof that it foresees the negative consequences for the sector?