Grant, funding, rebate in Hungary

The total amount of the support is about HUF 5,4 billion (EUR 20 million) in 2009 (here you can see the comprehensive table about the details from 2000 til 2008 http://english.mmka.hu/images/pdf/funds_2000-2008.pdf ) and it's goint to increase in 2010 up to HUF 6 billion as the agreement between the Cultural Ministry and MMKA signed in 2007 has arranged. The feature films get usually the 40-45% of the whole amount.

 

A feature production can make an application for development, filming (grant and refundable grant), coproduction, short film, TV films, at the head of each category has its board to make decision about the applications.

 

In 2009 this was the grant and fund calendar

 

a) script developing	April and October	June and December
b) short films	April	May
c) feature films productions	*April september**	June and November
d) refundable grant	March and continuous until the 30th of November	In every two month
e) TV film production	March	April
f) coproductions	Continuous: March – November	In every three month

 

* in April those films could apply which have already won grant or the will of granting
** This year the September round was postponed due to the economical restrictions

 

You can see the coproduction funding details for 2008 in this table:

http://english.mmka.hu/images/pdf/2008_coproductions.pdf

 

Though the funding system try to support a production from the very beginning until the post-productions – or even the distribution – there are always some productions missing some stages, their application is refused, then it can happen that the already won sources are not enough for the start. 'This problem is caused because there's no coordination between the boards, which would be necessary – sais Gusztáv Schubert, critic, president of the refundable grant board. 'There should be some kind of hierarchy in the applications, if a production hasn't applied yet for development, it shouldn't be allowed to apply for coproduction, because it just won't be able to use it.'

 

If a production can't use the grant, after one year it expires.

 

Apart from the MMKA the productions can apply to different cultural state organizations, foundations, offices for funding. The National Cultural Foundation (NKA) also support pre-production and filming, you can apply in the beginning of the year and the Motion Picture Board makes the decisions. In 2009 the whole budget was HUF 359 million. The Hungarian Historical Film Foundation (MTFA) give support for historical films, mostly documentaries (total grant was HUF 86.3 million), but som fe features as well – last year two productions won HUF 8 million.

 

The major TV stations, as the media law requires, have to support films, usually the commercial stations make their own soap operas or chose the most popular genres (commedy, romantic films), the state owned channel support less profitable films like literature adaptations.

 

The Ministry of Education and Culture is the next supporter, it supports productions casually, mostly from the separete budget which is granted by the minister of culture.

 

Rebate

 

One of the goals of the Hungarian Motion Picture Act (Act II of 2004 on Motion Picture) was to increase the numbers of films made in Hungary. For this reason those productions which come to Hungary, and use the facilities, studios (even if they are foreign productions), or work with Hungarian productions (coproductions), or invest to Hungarian productions, have a benefit of 20% rebate of tax and the tax base which is called Tax Relief System (TRS). In 2008 the system was modified due to the requests of European Comission, so the productions have to pass a cultural test (they have to make minimum 16 point from 32), the latter is not a requirement for European coproductions. The other modification makes more advanteges for the companies: after all they can have 25% refund of their expenses.

 

The TRS attracts a lot of big productions, and created a boom of film studios. In 2007 the total budget of the films (service-jobs, coproductions, Hungarian films) increased 60% comparing to 2006, caused by mostly service-jobs and coproductions, like Guillermo del Toro's Hellboy 2 which was filmed in Korda Studios in Etyek.