Preasráitis
Ministers McGrath and Martin welcome increase in film tax credit project cap
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The Minister for Finance Michael McGrath and Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin today (Friday 28 March) welcome the increase in the film tax credit project cap to €125 million, and the extension of the tax credit to the end of 2028, following European Commission approval for both amendments.
Minister McGrath has signed two orders to commence the two amendments.
The first commencement order provides for an increase the cap on eligible expenditure as part of Section 481 from €70 million to €125 million, as announced in Budget 2024.
The second commencement order provides for the extension of the credit from its current end date of 31 December 2024 to 31 December 2028, as announced in Budget 2023.
Supporting the development of a thriving Irish audio-visual sector and the expression of Irish and European culture remain important objectives of the government. By providing tax relief to Irish producer companies in respect of qualifying productions, the scheme directly contributes to the growth of a creative screen industry in the State.
In welcoming the amendments, Minister McGrath stated:
“The increase in the cap on eligible expenditure related to the cost of production of certain films to €125 million signals the government’s intention to support the industry in capitalising on its success in recent years and to make Ireland a global leader in the area of high quality audio-visual production.
"In addition, the extension of the relief provides certainty to the film industry that this important incentive for the sector will be available for a further four years.
"I look forward to continued growth and employment opportunities for the Irish film sector in the years ahead.”
Minister Martin commented:
“I welcome the news that the European Commission has agreed to the increase in the cap on the Irish film tax relief to €125 million and also to the extension of the relief to 2028. Section 481 is a key element in the Irish Screen Industry, incentivising the growth of the indigenous industry as well as attracting international producers to bring their productions to Ireland.
"Receipt of the tax relief is dependent on productions investing in upskilling and training that generates a highly skilled crew in the Irish Industry, thus increasing its ability to cater for high-quality international productions.
"There is no doubt that the incredible international success of Irish film, animation and TV drama over the past five years would not have happened without Section 481. The new level of the cap will help enable our screen industry to attract major global incoming film and TV productions that will continue to heighten Ireland’s reputation as a highly desired international location for film and television production."
The Scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of Irish and European culture.
The scheme provides relief in the form of a corporation tax credit related to the cost of production of certain films. The credit is granted at a rate of 32% of the lowest of:
The minimum amount that must be spent on the production is €250,000 and the minimum eligible expenditure amount to qualify is €125,000.
Finance (No.2) Act 2023 provided for an increase to the cap on eligible expenditure in Section 481 from its current level of €70 million to €125 million per project.
The increase was subject to approval by the European Commission in line with existing State aid rules.
This approval has now been received and the order to commence the legislation has been signed by Minister McGrath.
This increase will aid the audio-visual sector to be competitive with other jurisdictions in terms of attracting high value productions to Ireland and will further enhance Ireland’s reputation as a centre of excellence for screen production.
Finance Act 2022 provided for the extension of Section 481 to 31 December 2028.
The relief was scheduled to be closed to new applicants on 31 December 2024. Extension of the relief in advance of this date demonstrates this government’s commitment to the Irish audio-visual industry, and is intended to provide certainty regarding the availability of the relief into the future.