The Film Relief tax credit is undergoing significant changes, as outlined in Budget 2013 and enacted in Finance Act 2013. Under the new scheme, film relief will be given a new focus. The delivery mechanism of the incentive will change. It will not be available to investors in qualifying films. Instead a payable tax credit amounting to 32% of the lowest of:
- the eligible expenditure amount;
- 80% of the total cost of production of the film; and
- €50,000,000,
will be paid directly to a Producer Company who produces a qualifying film. The tax credit will reduce the corporation tax of the producer company for the qualifying period. Where the tax credit exceeds the tax due for the qualifying period (as reduced by the tax paid), the tax credit will be a payable credit and will be paid directly to the producer company. The criteria in relation to eligible expenditure will remain unchanged.
The Department of Finance and the Revenue Commissioners are in regular discussions with the Irish Film Board and the film industry. The priorities and challenges of the games industry are different from those in other audiovisual sectors. The Department regularly reviews all tax expenditures in light of changing needs and international developments.