Written answers

Tuesday, 7 March 2023

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail)
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103. To ask the Minister for Finance if he has any plans to amend the parameters of the regional uplift scheme to encourage film production as part of the film tax credit, section 481; and if he will make a statement on the matter. [11157/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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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 and 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), and 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 in 2022 with a reduction to 3%, it has reduced to 2% this year, and will be Nil thereafter.

There are currently no plans to amend or extend the regional uplift or to introduce alternative proposals for regional specific changes to Section 481. However, I would note that the main film tax credit of 32% will remain available to qualifying productions in all areas of the country following the winding-down of the uplift. Furthermore, other non-tax supports are also available to regional productions, such as Screen Ireland's recently announced fund to support regional activity. The Regional Support Fund is designed to support the development of skills around the country, outside of the established hubs in Dublin and Wicklow. It is targeted at crew across all grades, including new entrants, and will also require commitments in the area of Diversity and Inclusion, sustainable production and on-set initiatives

The Deputy may be aware that Finance Bill 2022 provided for the extension of Section 481 from its current closing date of 31 December 2024 to 31 December 2028, subject to European Commission approval. Early provision for the extension of the relief demonstrates this Government’s commitment to the Irish audio-visual industry, and is intended to provide certainty regarding the future availability of the relief in view of the long lead-times which can be involved in the planning of audio-visual productions. This certainty will foster further confidence in Ireland as a centre of excellence for screen production.

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