Tax break extended to film producers from non-EU states

Hollywood and Bollywood movie producers could be queuing up to film major productions here after the Government moved to extend tax breaks to producers from non-EU states.

That’s the hope after Finance Minister Michael Noonan announced he was bringing a planned increase to 32% in the tax break forward from 2016 to 2015, and allowing non-EU producers to claim it for the first time.

The current tax break is 28%, and the increase and the broadening of eligibility is being brought in to combat incentives offered by the British government.

In 1987, Ireland was at the forefront of using tax breaks to help attract movie productions, leading to several blockbusters being filmed here after production companies were able to offset chunks of their budget against tax.

The new scheme will also apply to television and animation productions.

Irish Film Board CEO James Hickey said it would attract foreign direct investment and assist in creating Irish jobs within the sector.

“The enhancement of the Irish tax incentive for the film and television industry demonstrates the commitment of the Government to the future of the Irish film, television, and animation sector and Ireland’s creative industries,” he said.

Overall the audio-visual industry, which has a turnover of €500m, employs the equivalent of 6,500 full- time workers.

Last year, the Irish Film Board invested in 30 film and TV projects.

This resulted in around €80m being invested into in the economy through jobs and purchases.