Dáil Éireann Debate, Tuesday - 4 December 2018
162. Deputy Michael McGrath asked the Minister for Finance when EU approval will be secured to implement the regional uplift aspect of the film tax relief provided for in the Finance Bill 2018; and if he will make a statement on the matter. [50814/18]
View answerSection 481 TCA 1997 provides a 32% payable credit for eligible expenditure on film production in Ireland. It is available to Irish and international film production companies that are resident in the State or in an EEA State and carry on business in the State through a branch or subsidiary.
In addition to extending the credit's end date from 2020 to 2024, Finance Bill 2018 is providing for a short-term, tapered regional uplift, commencing at 5%, for productions being made in areas designated under the State aid regional guidelines. The regional uplift will be introduced subject to State aid approval.
The regional uplift will be phased out on a tiered basis with 5% available in years 1 and 2, 3% in year 3, 2% in year 4, and reducing to 0% from year 5 on. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.
In considering whether the regional film development uplift applies, the Minister for Culture, Heritage and the Gaeltacht shall have regard to the following factors -
i. whether the production of the film is substantially undertaken in an assisted region;
ii. whether there is limited availability of individuals with suitable experience or training who habitually reside within a 45 kilometre radius of the place of production to provide services; and
iii. in respect of the areas of expertise where there is limited availability, the company provides training for individuals that habitually reside within that 45 kilometre radius.
The regions availing of the uplift will currently be limited to areas in Ireland sanctioned to receive regional aid under the EU regional aid guidelines.
I would like to advise the Deputy that the notification process has begun but it is currently not possible to give a definitive timeline as to when this process will be completed.
