Starting in 2028, the National Institute of Cinema and Arts (Incaa) in Argentina will stop receiving direct funds from taxes intended for audiovisual production due to changes in labor law approved by the Senate. The new law alters the state’s financial relationship with the film industry, ending the allocation of funds that constituted a substantial part of the Incaa's budget. Specifically, it eliminates funding derived from 10% of cinema ticket sales, 25% of the revenue collected by the National Communications Agency (Enacom), and 10% of video rental income, which collectively supported film financing.

The reforms are poised to have profound implications on the Argentine film industry. The articles 210 and 211 of this labor law fundamentally change how the Incaa is financed, leading to speculation that local filmmakers could face severe budget cuts, constraining their capabilities to produce films. As policymakers discuss this labor reform further, industry stakeholders emphasize the urgent need for alternate funding models to sustain the national cinema, especially as artists express concern about the future viability of film production in Argentina.

While the full effects of this law will not be felt until 2028, there is an ongoing debate about the sustainability of the film industry moving forward. Critics argue that removing these funds could lead to a decline in Argentine cinema, a vital component of the nation’s cultural identity. This forthcoming change and its potential fallout have triggered discussions about the importance of governmental support for the arts and the cultural industries, emphasizing that without immediate action, the future of Argentine cinema may be in jeopardy.