Dáil Éireann Debate, Tuesday - 20 November 2018
172. Deputy Pearse Doherty asked the Minister for Finance the measures in the Finance Bill 2018 awaiting state aid approval; the measures from previous Finance Acts still awaiting state aid approval; and if he will make a statement on the matter. [48170/18]
View answerThere are two measures awaiting State Aid approval, both are contained within Finance Bill 2018.
Section 24 of Finance Bill 2018, as initiated, gives effect to the Budget announcement providing for a four-year extension to the film tax credit provided in section 481 of the Taxes Consolidation Act 1997, from the current end date of December 2020 to December 2024. The section also introduces a new, time-limited, tapered regional uplift for productions in areas designated under the State aid regional guidelines. This uplift will taper out over a period of 4 years. The uplift will be available at a rate of 5% in years 1 and 2, 3% in year 3 and finally 2% in year four. The section also provides for a number of administrative changes to ensure the credit operates in an efficient manner. As the film tax credit is a notified State aid, these changes are subject to EU approval and the process of notifying the EU is under way.
Section 11 of the Finance Bill 2018 amends Section 128F of the Taxes Consolidation Act 1997, which provides for favourable tax treatment of share options granted under the Key Employee Engagement Programme (KEEP). Under the scheme there are restrictions imposed on the total market value of shares which can be granted by the qualifying company to the qualifying employee. The restrictions are set out in paragraph (d) in the definition of “qualifying share option” in subsection (1). The amendment changes the restriction applied at employee level, whereby the limit of €250,000 in any 3 consecutive years of assessment is replaced by a life-time limit of €300,000, and the limit of 50% of the annual emoluments in the year of assessment is increased to 100% of the annual emoluments. This relief is also subject to State Aid provisions, although the KEEP scheme overall already has State Aid approval.
