Written answers
Tuesday, 4 March 2025
Department of Finance
Tax Credits
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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290. To ask the Minister for Finance if he plans to introduce a new regional audiovisual tax credit to replace the regional uplift; and if he will make a statement on the matter. [9718/25]
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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318. To ask the Minister for Finance if he had any discussions with civil servants with responsibility for AV tax incentives in respect of the potential to introduce a new regional audiovisual tax credit in 2026; and if he will make a statement on the matter. [9717/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 290 and 318 together.
Section 481 TCA 1997 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 Irish culture. Currently, the credit is granted at a rate of 32% of the lowest of:
- eligible expenditure,
- 80% of the total cost of production of the film, or
- €125 million.
The uplift provided an increased level of credit for five years, with 5% available in years 1 to 3 (2019, 2020 and 2021), 3% available in year 4 (2022), and 2% available in year 5 (2023). The uplift 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.
There are presently no plans for the introduction of a regionally-targeted tax credit for the film industry either as a standalone measure or under section 481. However, the Deputy may be aware that two new measures were introduced for the audiovisual sector as part of Budget 2025, enhancing supports for projects across the country. Section 481 was amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized productions with a maximum qualifying expenditure of €20 million, and a new audiovisual credit has also been introduced for Unscripted Productions, this provides for a 20% credit on eligible expenditure of up to €15 million per production. Both measures have been introduced subject to commencement orders, pending receipt of State aid approval from the European Commission.
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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291. To ask the Minister for Finance if he has given consideration to extending the new 8% uplift under the section 481 film tax credit to TV series as many Irish animation studios produce top quality TV work and this extension would benefit the industry across the board. [9722/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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As announced as part of Budget 2025, the section 481 film tax credit has been amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized productions with a maximum qualifying expenditure of €20 million. As you are aware, this uplift does not apply to all section 481 projects, however, it does apply to both animated and live action feature films provided certain conditions are met.
The new measure has been introduced subject to a commencement order, pending receipt of State aid approval from the European Commission. The Commission has been notified of the measure on the basis that it will apply to feature films only and the process of obtaining approval is now underway. It is not possible to provide an indicative timeline as to when a decision will be made in relation to the measure as this will depend on engagement with the Commission.
As this new measure has not yet commenced, further amendments to the policy have not been considered at this point. However, it is important to note that under the existing section 481 credit, a qualifying animated TV series can avail of relief at a rate of 32% on qualifying expenditure of up to €125 million.
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