Marie Sherlock (Dublin Central, Labour)
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330. To ask the Minister for Finance if his Department is investigating the potential ways to re-introduce a film tax credit for regional productions; if he would support such a tax credit; and if he will make a statement on the matter. [15107/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Finance Act 2018 introduced a short-term, tapered regional uplift under the section 481 film tax credit for productions being made in areas designated under the State aid regional guidelines (among other criteria). The purpose of the regional uplift was to support the development of new, local pools of talent in areas outside the main production hubs, to support the geographic spread of the audio-visual sector.

The uplift provided for 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. However, it should be noted that, 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 expected that such an approach would be viable for a future relief.

There are presently no plans to introduce new regionally-targeted tax-based supports for the audiovisual sector. However, the Deputy will be aware that government supports for audio-visual productions nationwide have been enhanced in recent years. For example, as part of Budget 2024, the cap on eligible expenditure for audio-visual productions was increased from €70 million to €125 million. In addition, two further new measures were introduced as part of Budget 2025: the section 481 film tax credit was amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized feature film productions with a maximum qualifying expenditure of €20 million (the Scéal Uplift); and a new audiovisual credit was introduced for Unscripted Productions, to provide for a 20% credit on eligible expenditure of up to €15 million per production. Both measures were introduced subject to commencement orders, pending receipt of State aid approval. To date, approval has been received in respect of the Scéal Uplift while officials continue to work closely with the European Commission with a view to obtaining approval for the Unscripted Production measure.

It is also worth noting that a range of non-tax-based supports are provided for regional productions. For example, in 2024, Screen Ireland invested over €6.5 million in productions, festivals, initiatives and activities that contributed to the nationwide development of the sector, including €4 million awarded through the agency’s Nationwide Additional Production Fund. Screen Ireland also provided funding supports for talent and skills development initiatives across the country, such as the agency’s National Talent Academy Network, which includes key bases in Limerick and Galway. In 2025, Screen Ireland will ring-fence funding of €5.5 million for nationwide development and Irish language storytelling. 53% of the live action feature film and TV drama in Screen Ireland’s 2025 slate of productions will be produced or filmed on location in regions outside of the traditional filmmaking hubs of Dublin and Wicklow – including counties Donegal, Limerick, Galway, Monaghan and Sligo.