Grants:
MMKA supports all types of films and all phases of production from pre-production through post-production. It also offers funding sources for cinema-related activities including training, research, education, distribution, and the operation of art-house cinemas.
The total amount of the support is about HUF 5.4 billion (EUR 20 million) in 2009 (a comprehensive table about the details from 2000 to 2008 can be found at http://english.mmka.hu/images/pdf/funds_2000-2008.pdf ) In 2010, funds will increase by 10%, to HUF 6 billion, in accordance with the agreement between the Cultural Ministry and MMKA signed in 2007. Feature films usually receive 40-45% of their total budget.
A feature production can make an application for development and filming through grant and refundable grant programmes. Coproductions, short films, and television films can apply for production grants.
Calls for grant applications are announced throughout the calendar year. Decisions announced every three months. In 2009 the September round was postponed due to the economic restrictions.
Apart from the MMKA, productions can apply to different cultural state organizations, foundations, and offices for funding. The National Cultural Foundation (NKA) also supports pre-production and filming, Applications are accepted in the beginning of the year, and the Motion Picture Board makes the decisions. In 2009 its budget was HUF 359 million. The Hungarian Historical Film Foundation (MTFA) gives support for historical films, mostly documentaries, but some features as well. Last year two productions won HUF 8 million from a total of HUF 86.3 million in grant funds.
The major TV stations are required by the media law to support films. Usually the commercial stations make their own soap operas or chose the popular genres (comedy, romantic films), while the state owned channel supports less profitable films such as literary adaptations.
The Ministry of Education and Culture is another source of funding, it supports productions a separate budget granted by the minister of culture.
Rebates:
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. Productions which come to Hungary and use the facilities and studios (even if they are foreign productions), or work with Hungarian productions (coproductions), or invest in Hungarian productions, can benefit of a 20% rebate of tax and a tax base called Tax Relief System (TRS). Productions have to pass a cultural test (they have to make minimum 16 point from 32), with the exception of European coproductions. In some cases productions can a 25% refund of their expenses.
The TRS has attracted numerous large productions and created a boom in film studios. In 2007 the total budget of the films (service-jobs, coproductions, Hungarian films) increased 60%, due to service jobs and coproductions, like Guillermo del Toro's Hellboy 2 which was filmed in Korda Studios.
