28-05-2025
- Business
- Irish Independent
Section 481 film tax credit gets an 8pc uplift
Media Minister Patrick O'Donovan and Finance Minister Paschal Donohoe jointly launched an enhanced Section 481 tax credit for mid- to lower-budget feature films.
The change was signalled in last year's Budget, and the official announcement was due to be made two weeks ago. It was postponed following US president Donald Trump's threat to put a 100pc tariff on movies produced outside America.
Mr Trump claimed Hollywood is dying a 'very fast death' due to other countries offering 'all kinds of incentives to draw our filmmakers away'. In a post on Truth Social, he added: 'WE WANT MOVIES MADE IN AMERICA, AGAIN!'
Government sources told the Irish Independent earlier this month that the official unveiling of the improvement to the Irish film tax credit was postponed as a result. It was decided that a launch just after Mr Trump's tariff threat would have sent the wrong signal to the US administration.
The improvements to the Section 481 scheme will be backdated, so that film-makers applying for the tax credit do not lose out as a result of the postponement.
Branded as 'Scéál', the scheme is an 8pc uplift to the existing 32pc tax incentive, bringing it to a total of 40pc. It will be available to feature films with a budget of less than €20m.
At least one of the key creative roles – director, screenwriter, composer, editor, cinematographer and production designer – must be taken by a native or resident of the European Economic Area.
In animated feature films, the key creative roles include art director, composer and production designer.
Another condition of the tax break is that the film must be intended for exhibition at a commercial cinema in Ireland for at least five days.
The ministers said the aim of the uplift is to encourage and support smaller-scale Irish cinema, providing opportunities for film creatives based in Ireland as they build their careers.
Mr Donohoe said: 'The Scéal uplift is a fantastic addition to our already globally recognised Section 481 film tax credit. The uplift will be of great benefit to our smaller indigenous productions, the type that portray Irish stories on screen and project them all over the world.'
The Government also intends to provide a tax break for unscripted productions, which include reality shows, chat shows and other light-entertainment programmes that are often filmed before a live studio audience. This means the likes of The Late Late Show on RTÉ could qualify.
The Department of Finance has notified the new relief to the European Commission, whose officials are now examining whether it complies with EU rules on state aid.
