Michael Lowry (Tipperary, Independent)
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258. To ask the Minister for Finance the steps that are being taken to appease the concerns raised by an organisation (details supplied) regarding the uplift to section 481 for the film, television, and animation tax credit, which provides an additional financial incentive to productions based outside counties Dublin, Wicklow, and Cork, and has helped to preserve the better regional spread achieved by those in the media production industry since its introduction; the measures that can be introduced by his Department to alleviate the concerns raised by the organisation should the uplift to the Section 481 not be extended beyond its 2023 expiry date; and if he will make a statement on the matter. [54455/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. 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 the Irish culture.

Finance Act 2018 introduced a short-term, tapered regional uplift for productions being made in areas designated under the State aid regional guidelines. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.

The uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector, Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted this year with a reduction to 3%, it will reduce 2% in 2023, and Nil thereafter.

There are currently no plans to increase the regional uplift rate or to introduce alternative proposals for regional specific changes in the context of Section 481. However I would note that the main film tax credit will remain available to qualifying productions in all areas of the country following the winding-down of the uplift.

There are however a number of other supports available to ensure the continued growth of the film industry across Ireland. I am informed by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media (DTCAGSM) that Screen Ireland, the national development agency for the Irish film, television and animation industry, has recently announced an investment of over €2 million towards the establishment of five new National Talent Academies in Wicklow, Limerick, Galway and Dublin for film and TV drama, animation and production crew. These new Talent Academies will build on the success of the Section 481 skills model to develop and drive opportunities for new and diverse regional talent on a national level. This will ensure an overall national approach to creative talent, crew and workforce development in line with the significant growth ambition for the industry and commitment to social cohesion.

Also in 2021 Screen Ireland announced the Creative Futures fund as part of a commitment to grow strong and resilient companies throughout the country. The fund is designed to help support companies strengthen and hone their expert creative capabilities and ambitions and build cultural resilience to enable high quality cultural projects. I am informed by DTCAGSM that 35% of successful companies were based regionally (outside of Dublin and Wicklow).