The Italian government will this week announce major changes to its film and TV tax credit system aimed at boosting local productions and producers and ensuring more Italian stories get told on screen. The changes come after a year of uncertainty that has left many productions in limbo.

Under the new rules, international co-productions will face an €18 million ($19.7 million) cap on tax credit payouts for projects where at least 30 percent of the production is made in Italy. Local productions will be capped at €9 million ($10 million). The overall fund for film and audiovisual investments in 2024 remains unchanged at approximately €700 million ($782 million).

The change is designed to boost Italian TV and movies and encourage visiting international productions to focus more on Italian stories, like Michael Mann’s Ferrari, about the life of the legendary car designer, starring Adam Driver and Penelope Cruz, which premiered at last year’s Venice Film Festival, or...