According to a May 18 press release from th e European Parliament, the European Union (EU) competition authorities have approved tax credits for recording production. This tax measure will apply to artistic, development, and recording expenses for new talent and has a ceiling of 500,000 euros per company and per year. This measure will also allow companies who invest in new talent to receive a tax break equal to 20% of their production and career development expenses.
For France , which backed this measure at the EU, culture and communication minister Renaud Donnedieu de Vabres declared that the measure "will allow recording companies and particularly independents to continue to grow and to make an important contribution to cultural diversity." According to the minister, there are around a hundred French companies that should benefit. According to UFPI (French Union of Recording Producers), the tax credit "should leave music producers better equipped financially to deal with the challenges of the technological change they are facing today." This measure was included in the French law on authors' and related rights in the information society (DADVSI) and will take effect retroactively to January 1, 2006, as soon as the law is enacted.
This special support measure for cultural industries is already in force in Québec, notably in the recording, entertainment, and video industries. The Government of Québec contributes in several ways to the development and success of the recording and entertainment industry, including through refundable tax credits for sound recordings. These measures were further enhanced in 2006 when DVDs and music videos were made eligible for the recording tax credit. The tax credit ceiling for entertainment productions was also raised, from $262,500 to $750,000. Since 2003, these measures have supported annual production of some 90 sound recordings and 170 performances, representing production outlays of $60 million annually. In addition, the sound recording and variety show support program (PADISQ) of Société de développement des entreprises culturelles (SODEC) allows companies to receive assistance for production and promotion of sound recordings and performances. In 2005, support was $3.4 million.
These initiatives were reiterated by Québec culture and communications minister Line Beauchamp at the time of the ADISQ gala (Association québécoise de l'industrie du disque, du spectacle et de la vidéo), which she attended on October 29 in Montréal. In a press release she declared that "The ADISQ gala invites us every year to celebrate the diversity and vitality of Québec's song, music, and art scene. I would like to take this opportunity to acknowledge the talent of the artists who entertain us, who electrify us, and who help make our culture a touchstone of our identity."