In a statement made on January 25th Mary Hanafin, T.D., Minister for Tourism, Culture and Sport, announced the decision of the Irish government to extend the film and television tax investment scheme, Section 481 to the end of 2015. The scheme’s outlines had been amended in 2008 when its previous closing date had been moved to 2012.
Announcing the decision Minister Hanafin commented on the benefits of Section 481 thus far, saying: “The current scheme was due to expire at the end of 2012 and because of its significant and positive impact on this sector a decision was taken by the Government today to extend it in the Finance Bill.”
The scheme was amended and enhanced in a number of the Finance Acts, most recently in 2008 when the scheme was extended for a further four years from its original date, until the end of 2012. Other changes then made included an increase in the overall ceiling on qualifying expenditure from €35m to €50m, an increase in the individual investor cap for those wishing to invest finance in film in Ireland to €50,000 per annum from the previous limit of €31,750 and an increase in the relief on that investment to 100% from 80%. These changes resulted in Ireland being able to offer somewhere in the region of 26% - 28% net benefit to film producers, up from a previous 20%.
Minister Hanafin, who last week officially launched the 2011 IFTAs, also spoke about the changes made to the Section 481 structure in 2008, noting: “the changes introduced in 2008 were significant and gave the Irish audiovisual sector a major boost in challenging times. In 2010, a total of 57 projects were approved for funding with an Irish spend of some €165m. These 57 projects supported employment for crew, cast and extras of over 10,000 individuals and had the effect of maintaining and creating jobs in a very difficult economic climate, while at the same time producing a product that will help to sell Ireland abroad.”
Minister Hanafin concluded by praising the recent successes of the Irish film industry, saying: “it was imperative that we afford this industry a long term growth perspective and build on the successes to date. In a week in which Irish movies are performing to rave reviews at the Sundance Film Festival and during which the short film ‘The Crush’ is nominated for an Oscar, this is a vote of confidence in our film practitioners and in the sector as a whole. Irish movie makers are top class – both behind and in front of the cameras, and the honours they have received over the years are a testament to this. This sector is truly one of our enduring success stories and Government investment and support is repaid many times over.”
Responding to the news of the scheme’s extension, IFB Chairman, James Morris said: "The extension of the current tax incentive for film and television to 2015 comes at a crucial time, ensuring stability and certainty to the Irish film and television sector. At a time when there has been much international uncertainty about Ireland's economic climate, this guarantee will reassure our international production partners that Ireland remains firmly open for business. We already have a significant number of film and television projects in the pipeline and this news will help to secure these productions for Ireland."
