Film reimbursement fund runs out halfway through 2026

The funding allocated for film production reimbursements in 2026 was exhausted around the middle of the year, mbl.is reports. The government will seek additional funding from parliament, while several applications are still awaiting processing and more are expected.

The allocation for film production reimbursements this year was 3,963 million Icelandic krónur. On July 3, filmmakers were informed that the fund had been depleted.

The committee responsible for film production reimbursements said it would use an authority under regulations to postpone payments until next year if parliament did not approve additional funding during 2026.

According to the Icelandic Film Centre, which administers the reimbursement scheme, 3,773 million krónur have been paid out this year.

The amount paid is lower than the annual allocation because a deficit from the previous year and the system’s operating costs are deducted, the centre said in response to an inquiry from Morgunblaðið.

Eight film projects have currently been approved for reimbursements but are still waiting to be paid. Applications whose payments have been postponed total 257 million krónur, although the final amount will not be known until the end of the year because more applications may be submitted and approved.