Pearse Doherty (Donegal, Sinn Fein)
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430.To ask the Minister for Finance the cost of expanding section 481 tax relief to theatre productions. [33651/24]

Pearse Doherty (Donegal, Sinn Fein)
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431.To ask the Minister for Finance the cost of restoring the regional uplift for section 481 tax relief. [33652/24]

Pearse Doherty (Donegal, Sinn Fein)
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432.To ask the Minister for Finance the cost of establishing a regional uplift for section 481 tax relief limited to productions filmed in Gaeltacht areas. [33653/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 430, 431 and 432 together.

In relation to question 33651/24, I am advised by Revenue that theatre productions are not separately identified on corporation tax returns. The costing requested would depend on the number and cost of qualifying theatre productions. Therefore, Revenue has no basis on which to estimate the cost of extending this relief in the manner suggested.

In relation to question 33652/24, 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 was 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 lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted, reducing to 3% in 2022, 2% in 2023, and it has now ceased.

As the regional uplift was an approved State aid, any restoration of the uplift would require approval from the European Commission. It should be noted that a further extension of the uplift in its previous form may not be possible. While it was not a Regional Aid, the relief operated by reference to the regional aid map applicable at the time it was introduced. A new regional aid map, covering a smaller geographic area, was introduced from April 2021 and, while approval was granted by the European Commission for the uplift to continue to reference the previous map for its remaining term, it is not clear that a similar approval would be granted if the uplift were to be re-introduced.

I am advised by Revenue that the Exchequer cost of the regional uplift is dependent on the number of qualifying films, as well as the timing and value of claims made for the relief into the future. As information on future expenditure in this sector is unknown, there is no basis available to provide an accurate estimate of the information requested by the Deputy.

However, the Deputy may wish to note that the estimated additional cost of the regional uplift on claims paid during 2022 was approximately €3.4m. This estimated cost is based on payments for both upfront claims (for 90% based on budgeted expenditure) in 2022, a year in which the regional uplift was 3%, and balancing claims from previous years.

In relation to question 33653/24, I am advised by Revenue that it cannot provide an estimate the cost of establishing a regional uplift for film production in Gaeltacht areas as it has no data on which to base such an estimate.

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.

Pearse Doherty (Donegal, Sinn Fein)
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433.To ask the Minister for Finance the cost of expanding section 481 tax relief to unscripted films. [33654/24]

Jack Chambers (Dublin West, 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.

The Deputy will be aware that, as part of his Budget 2024 speech, my predecessor Minister McGrath announced plans for the development of an incentive for the unscripted production sector.

It is intended that this new incentive will complement the long-standing section 481 tax credit in supporting Ireland’s growing and internationally-recognised audio-visual sector.

Work is being undertaken on the design the measure at this time with a view to introduction in this year's Finance Act. In order to introduce the credit, approval will be required from the European Commission as an incentive of this nature is a State aid.

In terms of the cost of expanding section 481 to unscripted films, there are a number of variables associated with undertaking such a costing that are required to produce an accurate estimate, for example, the type of unscripted content such an extension would cover. There are a broad range of genres to which an unscripted production credit could apply, including lifestyle programming, entertainment, factual entertainment, factual programming and live programming (news, current affairs sports, talk shows and award shows). A further consideration would be the type of expenditure such an extension would cover.

In addition to the above, the future cost of the extension of section 481 to unscripted films would also be dependent on the number of films that would qualify as a result of such an extension, as well as the timing and value of claims made for the relief into the future. As information on future expenditure in this sector is unknown, an accurate estimate of the information requested by the Deputy cannot be provided.