Dáil Éireann Debate, Thursday - 2 March 2023
187. Deputy Alan Dillon asked the Minister for Finance if the €70 million cap on section 481 tax breaks will be uncapped for a pilot period on the back of major capital investment in studio space in recent years and the potential for Ireland to attract tent-pole productions of scale following the recent success of Irish film production; and if he will make a statement on the matter. [10755/23]
View answerSection 481 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.
The scheme provides relief in the form of a corporation tax credit related to the cost of production of certain films. The credit is granted at a rate of 32% of the lowest of eligible expenditure, 80% of the total cost of production of the film or €70 million.
The minimum amount that must be spent on the production is €250,000 and the minimum eligible expenditure amount to qualify is €125,000.
Prior to 2015, the scheme operated by giving tax relief to individuals investing in the film industry. In 2015, the relief was restructured from an investor-based relief to a corporation tax credit.
The cap on eligible expenditure was increased from €50 million to €70 million in 2016. The increase to €70 million struck an appropriate balance between providing a sufficient increase to attract big budget films, while also being mindful of the possible cost to the public finances if a number of such films were to come to Ireland.
I am aware that there have been a number of calls to increase the cap, however, there is no plan for its increase at this time.
The Deputy may be aware that Finance Bill 2022 provided for the extension of Section 481 from its current end date of 31 December 2024 to 31 December 2028. This extension is subject to European Commission approval. Extension of the relief in advance of this date demonstrates this Government’s commitment to the Irish audio-visual industry, and is intended to provide certainty regarding the future availability of the relief. This certainty will foster further confidence in Ireland as a centre of excellence for screen production.
