DUBLIN: The Irish Government has announced that the cap on eligible expenditure for the Film Tax Credit will increase from EUR50m (USD56.5m) to EUR70m from May 1.
The Government first proposed changes to the Film Tax Credit in Budget 2016, which was delivered last October. It has now received State Aid approval from the European Union for the increased cap, meaning it can now enter into force.
Eligible expenditure is expenditure on Irish goods and services as part of the overall outlay of the film. Projects must either pass the cultural test or qualify as an official co-production under one of Ireland’s Bilateral Co-Production Treaties or the European Convention on Cinematographic Co-Production. The credit applies to feature films, TV dramas, animation (excluding computer games), and creative documentaries.
Finance Minister Michael Noonan said: “The revised Film Tax Credit has supported Irish culture and art, and encourages our national film industry. The scheme will now provide companies who produce movies and TV shows with a payable tax credit. The credit is calculated project by project and from May 1 companies can claim against expenditure of up to EUR70m.”
“With this increased cap we will encourage the necessary investment in the provision of studio and other film production facilities. The Irish film industry has a large impact on our culture, our international reputation and recognition. The industry also provides jobs and educational opportunities for many. I look forward to seeing many more quality productions from filmmakers in Ireland who have benefitted from this incentive.”
