breathed a sigh of relief following a recent European Commission (EC)
decision to approve its tax-incentive program.
Industry insiders admit there was concern the EC might not ratify an
amended Hungarian Film Law passed in June because of its tax scheme.
But Brussels surprised Hungarian producers by ratifying the 20% rebate
contained in the original law, and ordering Budapest to extend tax
incentives to include costs incurred by productions while shooting outside
"Frankly, I think the new scheme is an improvement," says ,
chairman of Filmstudio, Hungary's largest studio complex, located
just west of Budapest. "In this competitive world, the expanded incentives
(of national and foreign tax deductions) are a good combination."