Audiovisual Ireland, the screen industry body affiliated to employers group Ibec, has called on the Government to increase the rate of tax relief available to lower budget productions to 40 per cent to match a new UK incentive.
Former UK prime minister Rishi Sunak unveiled a measure in March that allows productions with a budget of £15 million (€18 million) or less to avail of an enhanced 40 per cent tax credit.
As the State’s section 481 tax credit offers relief at a rate of 32 per cent, the UK move has sparked concerns that the Republic will lose out on inward investment from international films and television series. It has also been suggested that some Irish-produced projects may now find it more viable to relocate to the UK.
Audiovisual Ireland said section 481 should give 40 per cent relief to feature film, television drama, animation and creative documentaries where the global production budget is less than €20 million per project.
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For projects that only involve visual effects (VFX) work carried out in the State, the 40 per cent rate should also be available where the Irish expenditure is less than €10 million per project, it added.
Audiovisual Ireland also called for increased investment in regional skills development and production, saying interim funding is needed to bridge a gap until a replacement for the former regional uplift to section 481 can be introduced.
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This regional uplift, introduced in the Finance Act 2018, initially gave a further 5 per cent tax credit on top of the 32 per cent credit against corporation tax before tapering off. It expired at the end of 2023.
It urged the Government to conduct a study to explore introducing an uplift to the existing incentive for productions based in Gaeltacht areas.
“The Irish screen sector has seen remarkable achievements over the last decade. Now, we have a unique opportunity to take that success to the next level,” said Torlach Denihan, director of Audiovisual Ireland.
“By increasing fiscal incentives, growing regional skills and production, and promoting Irish language content, we can build a sustainable and thriving industry that showcases Irish talent to audiences both at home and globally.”
Audiovisual Ireland said significant progress had been made since the launch of the Audiovisual Action Plan in 2018, including increased funding for Screen Ireland and the increase in the cap on eligible expenditure under section 481 from €70 million to €125 million.
But it said more work was needed to fully capitalise on recent progress and “secure a vibrant future” for the Irish screen industry.
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