the MexiCan filM industry

26 Negocios
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Under that model, the Mexican government
allocates 70 million USD a year to film
projects. These funds are distributed via
entities such as the Fund for Quality Film
Productions (FOPROCINE) and the Film
Investment and Stimulus Fund (FIDE-
CINE). Additionally, Mexican law provides
for the setting up of a private capital fund,
managed and distributed by IMCINE via
the EFICINE 226 incentive.
Created to support the production of
fictional features, documentaries and
animated films, Mexican production companies
and individuals are eligible for
FOPROCINE financing, although foreign
filmmakers can apply provided they have
been residing in the country for at least
two years and can prove they have been
involved in the Mexican film industry
during that time.
FIDECINE is geared more toward the
production, postproduction, distribution
and screening of fictional features and
animated films and includes incentives for
commercial showings and good track records
at Mexican and international festivals.
For instance, directors whose films recoup
100% of financial assistance received
under the mechanism are granted an equivalent
amount to make a second film.
These two funds operate via venture
capital and credit lines: filmmakers may
only apply for financial assistance from
one at a time but both can be combined
with EFICINE 226.
Commonly referred to as simply “226”,
the incentive was introduced in 2006 and
allows taxpayers, both individuals and corporations,
to participate in the production
and postproduction of Mexican features
and co-productions.
The backer receives a tax credit equivalent
to the amount invested –up to a maximum
of 20 million pesos– which can be
used to offset income tax. A maximum of
500 million pesos is granted in tax credits
every year.
Since the mechanism came into effect,
408 companies have backed 207 film projects,
including first features, documentaries
and animated films.
Aside from the fringe benefits that come
with a successful festival tour, like the one
on which Patricia Martínez de Velasco’s
Aquí entre nos (2010) embarked, films like
Luis Estrada’s El infierno (2010) have encouraged
Mexican audiences to go see films
made on their home turf.
“The 226 incentive has proven to be a
good source of investment and has helped
consolidate the Mexican industry. The
number of films produced has increased in
recent years,” says Andrea Stavenhagen, codirector
of the “Industry” section of FICG.
Other countries like Spain, which is constantly
producing films, have either adopted
or are seeking to adopt similar joint financing
models, according to an interview José María
Lasalle gave to the Spanish daily, El País, not
so long ago. Appointed Ministry of Culture
under the government formed by Spain’s new
president Mariano Rajoy, Lasalle is quoted as
saying “we shouldn’t think of film as a creative
art but as a business” for which a public
and private financing model urgently needs
to be found if it is to survive government budget
cuts in these times of crisis.
If the last six years are anything to
go by, Mexico’s industry should have no
trouble weathering the storm, reeling in
increasing larger audiences with films that
leave no doubt as to the growing professionalization
and technical capacity of the
country’s filmmakers.