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Dáil Éireann díospóireacht -
Wednesday, 5 Jun 1996

Vol. 466 No. 4

Written Answers. - Film Production Incentives.

Michael Creed

Ceist:

127 Mr. Creed asked the Minister for Arts, Culture and the Gaeltacht the incentives available in respect of film production in Ireland. [11480/96]

The two main incentives available for film production in Ireland are: Section 35 of the Finance Act, 1987, as amended, which provides tax relief to persons or companies investing in the production of a qualifying film, the main features of which are: — for productions commencing principal photography in the off-peak production period covering the months of October to January inclusive, up to 66 per cent of the cost of production of projects under £4 million and 55 per cent of the cost of production of projects over £5 million can be raised under Section 35, subject to a maximum of £8.25 million; in peak production periods covering the months February to September inclusive, the amount of investments which can be raised under Section 35 is 60 per cent of the cost of production of projects under £4 million and 50 per cent of projects over £5 million, subject to a maximum of £7.5 million; tax relief on individual and company investments is 80 per cent of the amount invested, but both individual and corporate investors may now dispose of their shares at the end of one year instead of every three years; the annual limit for investments by corporate investors is £6 million; Section 35 tax relief is triggered at the first day of principal photography; and development and production loans awarded by Bórd Scannán na hÉireann, the Irish Film Board, for the development of projects and the production of films.

Some funding for films is made available by RTÉ under the provisions of the Broadcasting Authority (Amendment) Act, 1993, and An Comhairle Ealaíon operates a film and video awards, scheme which includes short dramas, animated shorts and experimental productions.

Other factors which should be mentioned for the sake of completeness but do not come directly under the aegis of my Department (apart from the role of Údarás na Gaeltachta as an industrial development agency) are the following: assistance, including capital grants, is available from the State industrial development agencies for companies wishing to establish permanent production facilities in Ireland; a 10 per cent manufacturing rate of company tax is applicable to companies involved in manufacturing, including film production; the master negative of a film is regarded as plant and can be written off for tax purposes over seven years; and incentives are available to Irish producers from European-wide initiative such as the EU Media II Programme 1996-2000 and EURIMAGES — the Council of Europe's film co-production fund which has an annual budget of over £18 million and has to date assisted 12 Irish films co-produced in each case with two other European partners.
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