Skip to main content
Normal View

Film Industry Tax Reliefs

Dáil Éireann Debate, Tuesday - 15 January 2019

Tuesday, 15 January 2019

Questions (224, 225)

Michael McGrath

Question:

224. Deputy Michael McGrath asked the Minister for Finance when he expects EU approval will be secured to implement the regional uplift aspect of the film tax relief provided for in the Finance Act 2018; and if he will make a statement on the matter. [1328/19]

View answer

Michael McGrath

Question:

225. Deputy Michael McGrath asked the Minister for Finance if efforts will be made to support the inclusion of Cork city and county in the regional uplift aspect of the film tax relief provided for in the Finance Act 2018; and if he will make a statement on the matter. [1329/19]

View answer

Written answers

I propose to take Questions Nos. 224 and 225 together.

Section 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 provided 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 and 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.

The EU Regional Aid Guidelines (RAGS) allow each Member State to provide enhanced rates of State aid in the least economically developed areas of each country. This enables the State’s enterprise development agencies to grant State aid, at enhanced rates, to businesses in order to support new investment and new employment in productive projects in Ireland's most disadvantaged regions.

Ireland’s regional aid map was sanctioned by the EU in 2014. In accordance with the map, the regions unable to avail of the uplift are Dublin, Cork and the Mid-East generally, i.e. Kildare, Meath and Wicklow. (Exceptions in the mid-east which can receive regional aid assistance are Kells, Athy and Arklow.) The uplift is subject to State aid approval. My officials are currently in the process of notifying the aid with the European Commission. As I advised during Report stage of the Finance Bill process, should it transpire through conversations with the Commission that the geographic regions able to avail of the uplift can be amended, the inclusion of Cork city and county in may be something we can consider.

I would also like to advise the Deputy the process of notifying the EU of the regional uplift has begun but it is currently not possible to give a definitive timeline as to when this process will be completed.

Top
Share