Dáil Éireann Debate, Tuesday - 16 June 2020
79. Deputy Frankie Feighan asked the Minister for Finance if he will consider matters raised in correspondence (details supplied) and a request to extend the section 481 regional film development uplift to 2021; and if he will make a statement on the matter. [11007/20]
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. The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture.
Finance Act 2018 introduced a short-term, tapered regional uplift. The regional uplift will be phased out on a tiered basis with 5% available in years 1 (2019) and 2 (2020), 3% in year 3 (2021), 2% in year 4 (2022), 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. The regions availing of the uplift is limited to areas in Ireland sanctioned to receive regional aid under the EU regional aid guidelines.
The Government is fully aware of the unprecedented impact that the COVID-19 is having not only on the audiovisual sector, but also on the wider economy. In this regard a range of measures have been introduced to provide supports to those who need it, including supports for the cultural sector such as: forward the payment of grants awarded this year to ensure financial commitments can be met; waiving eligibility requirements which no longer apply due to the COVID-19 crisis; and an initiative to support artistic and creative life during the COVID-19 crisis. Details of these measures may be found at the following link: https://www.chg.gov.ie/covid19-supports-for-artists/
In addition to the current supports in place, my officials are examining a range of possible measures to ensure that the economy is in a position to recover while maintaining a stable tax base, including the proposal for amendments to the regional uplift. In this regard it should be noted that, as film relief is an approved State-aid, any amendments to the scheme would require approval from the European Commission.
