Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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140. To ask the Minister for Finance the estimated cost of restoring the full 5% regional uplift, as it was previously constituted, for the section 481 tax credit for film. [28929/25]

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 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 finally 2% available in year 5 (2023)

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.

In relation to the potential cost of a new uplift, I am advised by Revenue that the Exchequer cost of the regional uplift would be 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, it may be of assistance to note that as part of the Cost Benefit Analysis of Section 481, published on Budget Day 2022, the estimated cost of the regional uplift in 2020 and 2021 was €5.9 million and €4.7 million respectively, both being years in which a 5% uplift was available. The Cost Benefit Analysis is available at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/

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 audiovisual productions nationwide have been enhanced in recent years. As part of Budget 2025 two new measures were introduced: 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 and both the commencement order and regulations have been signed, while officials continue to work closely with the European Commission with a view to obtaining approval for the Unscripted Production measure.