The Baltic Times said the scheme under consideration is based on the Hungarian tax incentives programme launched in 2004.

Lithuania and its Soviet era studio has been a draw to foreign productions due to low costs, but the privatization of the old state studio (now for the most part demolished), aided by developing film service industries and tax incentives in other parts of CEE, have hampered the country's ability to attract productions.

At least some influential politicians seem to favor the producers' proposal. with a working group appointed to draft legislation. Some insiders are hopeful that the scheme might move forward as early as by the end of 2011.