Italy is looking to usher in a new form of tax credit that will apply directly to game companies operating in the country.
As reported by GamesIndustry.biz, any studios working on game development will be granted a 25 per cent tax credit.
This can be claimed up to €1 million ($1.22 million) as long as the studio is headquartered in European Economic Area and taxation is attributed to Italy.
While many countries already offer several tax credit incentives to game firms, this will be the first one introduced to Italy.
The initiative will now make its way to the European Union for approval.
"Video games are the fruit of creative genius, and it is right that, as in the case of cinema and audiovisuals, they should receive support if they are recognised as works of particular cultural value," Italy minister of culture Dario Franceschini said.
"In Italy, the sector is growing exponentially, with numerous start-ups by under-30s capable of developing high-quality products, attracting major international productions and nurturing young talent.
"These are true creative workshops, which deserve every support and can contribute to new ways of knowing and learning."
Earlier this week, the IIDEA revealed that the Italian game industry has grown by 45 per cent since 2018 to 1,600 workers.