Dáil Éireann Debate, Tuesday - 26 July 2022
368. Deputy Aengus Ó Snodaigh asked the Minister for Finance the estimated cost to the State of retaining the regional uplift for the audio-visual industry at existing levels in each of the next five years. [40527/22]
View answerSection 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. 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 for productions being made in areas designated under the State aid regional guidelines. 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 uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However, in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector, Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted, reducing to 3% in the current year 2022, 2% in 2023, and Nil thereafter.
I am advised by Revenue that the Exchequer cost of the regional uplift is dependent on the number and value of claims made for the relief in future. As information on future expenditure in this sector is unknown, there is no basis available to provide an accurate estimate of the future cost of the regional uplift. However the Deputy may wish to note that in 2020, the latest year for which Corporation Tax returns have been received and a year in which the uplift rate was 5%, the cost of the regional uplift was €3.9 million.
