| 1 |
Who may submit an application? |
Film producers may submit an application.
Film producers are defined as persons who are responsible for the production of a film right up to delivery of the final product – or share responsibility, as in the case of a co-production – and are actively involved in the production. Even if a number of co-producers working on a co-production fulfill the application requirements, the application may only be submitted by one co-producer. The co-producers must reach an agreement on this matter and provide the FFA with a joint declaration to this effect when submitting their application.
Applicants must have a legal residence or registered place of business in Germany. Should applicants have a legal residence or registered place of business in another member country of the European Union or in another state that is a signatory to the Agreement on the European Economic Area, then they must have a branch office in Germany.
If the film is produced by the German subsidiary or branch office of a producer with a place of business outside the European Union or outside the member states of the European Economic Area, then all criteria for the granting of funds must be met by the German subsidiary or branch office.
Applicants must have produced, either as a company or a person, at least one full-length film ("reference" film) in Germany or in another member state of the European Union or in a state that is a signatory to the Agreement on the European Economic Area within the five years preceding submission of the application.
The reference film must have been commercially released in German cinemas with at least 30 copies, or at least 15 copies if the production costs were as high as two million euros. Should the reference film be the producer's first work, a theatrical release with ten copies – or four copies for documentary films – is sufficient.
If funding is sought for the applicant's first film, the only reference required is approval for funding by the office of the Federal Government Commissioner for Culture and Media (BKM), the FFA, or a film board in one of the German states.
|
| 2 |
What films qualify for grants? |
Grants can be awarded to any full-length film with a running time of at least 79 minutes, or at least 59 minutes for children's films, providing the following criteria are fulfilled:
Production costs must amount to at least the following:
Feature films one million euros
Documentaries 200,000 euros
Animated films two million euros
Production costs are to be calculated according to the principles of sound economic management, which are set out in a supplement to the funding guidelines of the BKM.
At least 25 percent of the production costs must be spent in Germany, or only 20 percent, if the production costs are higher than 20 million euros. For German production costs of 15 million euros and above, there is no minimal percentage.
Costs for essential exterior filming abroad may not go toward calculating the minimum amount of German production costs. There are a number of special aspects to this issue that are dealt with in the chapter "What are production costs."
|
| 3 |
How large are the grants? |
The normal grant ceiling per film is four million euros. Following a special request from the producer, this grant ceiling can be extended to a maximum of 10 million euros. In order to qualify for this extra funding, the German production costs must make up at least 35 percent of the total costs or the film has to receive two-thirds of the total possible points in the funding eligibility test. The advisory council decides on such requests for extra funding.
Grants can amount to up to 20 percent of the approved German production costs. When calculating funding, the approved German productions costs will only be taken into consideration up to an amount corresponding to a maximum of 80 percent of the production costs (upper limit).
Should the German production costs turn out higher than originally anticipated, they can be adjusted by a maximum of eight percent compared to the original German production costs listed in the application, subject to available financing. Despite subsequent increases in German production costs, only a maximum of 80 percent of the production costs may be used as a basis for calculating grants.
A German production company produces a feature film
1st calculation example:
Production costs: 4 million euros
German production costs: 4 million euros
Approved German production costs: 3.5 million euros
Upper limit: 3.2 million euros (= 80 % of the production costs)
Calculation threshold:
(upper limit) 3.2 million euros
Grant: 640,000 euros (= 20% of the upper limit)
2nd calculation example:
Production costs: 4 million euros
German production costs: 3.5 million euros
Approved German production costs: 3 million euros
Upper limit 3.2 million euros (= 80 % of production costs)
Calculation threshold 3 million euros
(Approved German production costs)
Grant: 600,000 euros (= 20% of the approved German production costs)
|
| 4 |
How much of the production costs needs to be covered by applicants? |
Applicants must pay at least 5 percent of the production costs in accordance with Section 34, Paragraphs 1 through 4 of the Film Funding Law (FFG). The FFA management committee can make exceptions for a producer's first two full-length films and documentaries.
|
| 5 |
What other requirements need to be fulfilled? |
Proof must be supplied that the theatrical exhibition is covered by a legally binding distribution contract. This contract must stipulate a theatrical exhibition in the following dimensions:
At least 30 copies;
For grants under 320,000 euros, at least 15 copies;
For a producer's first work, 10 copies;
For a documentary film, 4 copies.
Distributors who act as the contracting parties for the applicants need to have released at least three full-length films with 15 copies in German cinemas in the 24 months preceding submission of the application. The FFA keeps a list of distributors who meet these criteria.
Within a year of completion of the film, it must be proven that the film has been shown in cinemas.
The film must comply with the holdback period (window) rule in Section 20 of the FFG. The holdback period for TV broadcasts can only be reduced by the FFA management committee.
Shooting and animation work may as a rule not begin before the official authorization has been issued, however, it must begin within four months of receiving notification of funding. The film must be completed within the indicated project timeline.
When the application is submitted, 75 percent of the project financing must be documented. The overall financing needs to be shown within three months of receiving notification of funding.
In accordance with BKM guidelines, a cultural eligibility test is conducted. There are specific point systems for feature films, animated films and documentaries. In the first part, the questionnaire focuses on the cultural contents and creative talents, while the second part deals with production. The eligibility test features a user-friendly design that makes it easy to fill out.
Applicants are required to supply a print of the film in an archivable format to the German Federal Archives (film archive).
For language versions, applicants need only supply a copy with German subtitles that is suitable for public screenings.
|
| 6 |
What are the rules for international co-productions? |
Applicants working on international co-productions must cover at least 20 percent of the production costs or five million euros for productions with costs of over 25 million euros.
When it comes to grant applications for co-productions involving a producer located outside of the European Economic Area, applicants must have produced a reference film alone or as a co-producer with a majority share. In exceptional cases, the FFA management committee can waive the majority share requirement if there is no doubt as to the applicant's professional qualifications.
For co-productions that are produced according to the European Convention, the eligibility test alone is conducted with respect to the point system in Appendix II of the European Convention.
International co-productions have to fulfill all funding requirements.
You will receive no grant if the German contribution is merely of a financial nature, in other words, if the German partner does not share responsibility for the content of the film and is not actively involved in the production process.
|
| 7 |
What are German production costs? |
German production costs are expenses that arise in Germany for film-related services provided by companies or their employees, staff or freelancers.
A fundamental criterion for recognition as German production costs is that the remunerated services provided by individuals – their wages, salaries and fees – are subject to the limited or unlimited liability to pay taxes in Germany.
When it comes to services provided by companies, it must be shown that the companies in question have their headquarters in Germany or have a branch office in Germany and, at the time when the services were performed, had at least one permanently employed staff member on their payroll who worked in Germany. All services listed on the invoice have to be totally provided in Germany. Invoices have to be issued by these companies located in Germany.
If the screenplay contains compelling reasons for shooting exterior scenes abroad, which cannot be shot in Germany, or can only be shot in Germany at a disproportionately high cost, then the accrued expenses qualify as German production costs. However, the following two restrictions apply:
Expenses must meet the criteria for services provided by individuals and companies; the ceiling is 40 percent of the total number of shooting days. For example, if there are a total of 30 shooting days, then twelve shooting days abroad (= 40 percent) may be counted. Nevertheless, during this period, only the expenses that were incurred in Germany can qualify as German production costs. The ceiling of 40 percent of the total number of shooting days does not apply to documentary films.
Note: The expenses approved here are not taken into account when calculating the minimum amount of German production costs.
|
| 8 |
Which expenses are not approved? |
The following items are not approved when calculating the grant:
pre-production costs,
costs for film rights and rights for other existing works (incl. existing music), except royalties for the script on which the film is based, up to 3 percent of the German production costs but not exceeding 150,000 euros; for documentary films, archival material up to 30 percent of the German production costs,
legal consulting fees,
insurance,
overhead costs,
financing costs,
travel and transport expenses for actors,
actors' fees, if they exceed 15 percent of the German production costs,
cost overrun reserves that cannot be retransferred during the final cost analysis toward deliveries and services qualifying for grant money.
These items cannot be taken into consideration when ascertaining the approved German production costs, however, they are used to establish the total costs and the German production costs.
|
| 9 |
Can different sources of funding be combined? |
A combination with other sources of funding is only possible up to the European allowed limit for funding of up to 50 percent, or up to 80 percent for short, challenging films.
|
| 10 |
When is the payment made? |
The funding process begins when the application is submitted by the film producer to the FFA.
If the evaluation process leads to a positive result, the FFA will issue an official authorization.
Payment generally takes place after the production has been completed. The FFA can also make provisions for installment payments to be disbursed according to the progress of the production (33 percent when shooting begins, 33 percent when the rough cut is completed, the remainder after the final cost analysis has been examined). For funding exceeding two million euros, installment payments are required along with proof of a film production completion bond or a financial guarantee corresponding to the approved amount of funding provided. In this case, a financial guarantee according to Section 31 FFG is not possible.
In essence, the funding need not be repaid. However, if the conditions are not met, the official authorization becomes null and void.
|
| 11 |
Can applications be re-submitted? |
Applications for the same project may be submitted twice.
|
CHANGES SHORT