The Tánaiste and Minister for Finance, Simon Harris TD, has welcomed the European Commission’s approval of a tax break for the Irish film industry.
Productions spending more than €1 million will receive a 40 percent tax credit for visual effects. The tax break will be capped at €10 million per production.
Visual effects – known in the industry as VFX – are used to create realistic-looking computer-generated people and animals, or the appearance of flames, smoke or water amongst other techniques.
The government said that the support was in recognition of “competitive challenges being faced by the visual effects sector in Ireland”.
The support was promised in the Budget last October, but the government had to seek EU approval under state aid rules.
“The Irish government looks forward to working with Screen Ireland and VFX industry stakeholders to further develop this sector in Ireland”, said Simon Harris.
“The introduction of this measure will represent a continued strengthening of Ireland’s tax incentives for film productions in Ireland and complements the Government’s long-standing support to screen production and Irish creative industries
The Department of Culture is now expected to publish further guidance explaining how the film industry can apply for the support.