Budget 2024: Improved screen tax credit will attract bigger productions to Ireland, says industry

The Irish screen industry has welcomed an increase in the cap for qualifying expenditure under the Section 481 tax credit for film and television from €70 million to €125 million, saying it will attract bigger-budget productions and boost employment.

Screen Ireland, the State development agency for the Irish film, television and animation industry, said the higher ceiling on the expenditure that qualifies for the 32 per cent corporation tax credit would create opportunities in growing areas such as visual effects (VFX) and post-production.

“In a landscape where global film and TV production budgets have reached an all-time high, the increase in the eligible expenditure cap will allow Ireland to attract a wider range of high-quality, larger-scale production,” said Screen Ireland chairwoman Susan Bergin.

Screen Producers Ireland, which represents production companies, also hailed the increase in the cap, describing it as a “real sign of confidence, and support for, the Irish film and television production sector”.

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The higher expenditure cap will allow production companies to better compete internationally to bring bigger-budget international productions to the State, it added.

“This will have the positive effect of increasing the potential amount of investment into the sector, growing high-value employment in the sector, improve overall economic benefit to the economy and supports Government’s ambition to double employment in the screen sector by 2028,” said Susan Kirby, chief executive of Screen Producers Ireland.

Audiovisual Ireland, the Ibec representative group for the screen industry, said it “applauded” the decision.

“This enhancement will not only bolster Ireland’s cultural and economic fabric but also amplify the impact of the exceptional works of Irish creative talents on a global stage while helping to achieve the Government’s Audiovisual Action Plan objective of doubling employment in the sector,” said Torlach Denihan, the group’s director.

Figures from the Revenue Commissioners show that payments of €127.3 million were made to producers under Section 481 in 2022. The limitations posed by the €70 million cap have long been a bugbear for Irish industry participants, however.

Meanwhile, neither Minister for Finance Michael McGrath nor Minister for Public Expenditure Paschal Donohoe addressed funding for embattled RTÉ in their budget speeches.

Mr Donohoe indicated that TG4 would be given “increased support”, which is expected to help fund content for children and young people on its dedicated new kids’ channel Cúla4.

Minister for Media Catherine Martin is due to give further details at a briefing on Wednesday.

Ms Martin confirmed last week that RTÉ would receive €16 million in Budget 2024, reflecting an earlier recommendation made by the Government-appointed Future of Media Commission, and that the full extent of the interim funding allocated to the broadcaster would be decided after she reviews director general Kevin Bakhurst’s strategic plan.

RTÉ had sought €34.5 million in the budget before its hidden payments scandal led to a decline in licence fee sales and renewals that is estimated to cost the organisation a further €21 million this year.