John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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32. To ask the Minister for Finance in view of the recent success of a number of Irish films internationally, his plans to improve the section 481 tax relief; and if he will make a statement on the matter. [13265/16]

Michael Noonan (Limerick City, Fine Gael)
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Following an economic impact assessment of the Film Relief, published in December 2012, and in line with the Programme for Government commitment to 'reduce, cap or eliminate income tax reliefs that benefit high income individuals', I made a number of changes to the film tax relief scheme with effect from January 2015. Primarily, these changes amended the scheme so that instead of providing for tax relief at an individual's marginal rate for an investment made in a qualifying company, a corporation tax credit is paid directly to a film producer company.

The amount of the credit is 32% of the lowest of:

- eligible expenditure (which is generally the amount spent on the employment of eligible individuals, goods, services and facilities in the State),

- 80% of the total cost of production of the film, or

- €70 million.

The amount of the credit was increased to €70 million with effect from 1st May 2016, from €50 million. This increase was made in recognition of the importance of Ireland's film industry to our cultural economy and aims to attract higher budget films to Ireland. An increase to €70 million struck an appropriate balance between providing a sufficient increase to attract big budget films, while also being mindful of the possible cost to the public finances if a number of such films were to come to Ireland. I intend to monitor the scheme to see the impact of these changes.