Way back in February of this year the French Parliament approved a plan to allow companies creating video games with a "cultural dimension" a 20% tax credit on development costs, a credit long enjoyed by the film industry in that country. Now the European Commission has approved the plan for a period of four years for games that meet the "criteria of quality, originality and contribute to cultural diversity". While the plan had initially excluded subcontracting costs, France has accepted the commission's request to include such costs as a way of making sure the rest of the European Union can benefit from the new policy. The EU will more than likely be closely monitoring what games benefit from the credit. EU competition commissioner Neelie Kroes is watching.
"We must be sure that the measure will promote only genuine cultural projects and that it will not have the effect of an industrial policy instrument in favour of the videogames sector."
EU approves tax breaks for games [GamesIndustry.biz]