The tax break for the film sector in Ireland announced in yesterday’s Budget 2024 is expected to boost film tourism to the country. Research by Tourism Ireland has shown that marquee projects like Game of Thrones and Star Wars have attracted tourists to Ireland and boosted visits and spend by as much as 10pc.
In Budget 2024, the Section 481 credit, which provides a tax credit on qualifying film production expenditure, has been raised from €70m to €125m per project.
Payments totalling over €127m were disbursed under the Section 481 credit scheme in 2022 alone.
The tax credit has supported various productions, including the film “The Pope’s Exorcist” featuring Russell Crowe, currently being filmed in Wicklow, the TV crime drama “Kin,” and the Netflix movie “The Irish Wish.”
The tax credit was set to expire at the end of 2024 but has been extended following a cost-benefit analysis, considering the cultural benefits.
The enhanced tax incentive is expected to attract more local and international filmmakers, benefiting local businesses, job creation, and the overall economy.
Irish film and television production is poised for success, solidifying the country’s position as a premier destination for cinematic ventures.
Tourism and culture minister Catherine Martin has previously pushed for an expansion of Section 481 in a letter to then finance minister Paschal Donohoe before last year’s budget: “Feedback from Irish visual effects companies from my recent trip to Los Angeles, is that we are losing out to other countries in attracting major internationally mobile productions costing in the region of €100m. They do not consider Ireland, because of the cap. Raising the cap now would send a strong international message that aligns with and bolsters our infrastructure, creative talent and beautiful scenery.”
In a statement, Audiovisual Ireland, a representative group for the screen industry connected to business lobby group Ibec, said: “this enhancement will not only bolster Ireland’s cultural and economic fabric but help to achieve the government’s Audiovisual Action Plan objective of doubling employment in the sector. With the backing of the sort contained in budget 2024, there’s immense potential to elevate the sector even further.”
