Irish TV tax break gets green light from Europe
The commission examined the plan, announced by minister Jack Chambers in last year's Budget, under EU state-aid rules. The aim is to promote the production of unscripted audiovisual programmes with either Irish or European cultural content.
The measure will be introduced for a four-year period, backdated to last December and running until December 31, 2028.
The aid is in the form of a tax credit of up to 20pc of the production expenditure that happens in Ireland. The maximum support cannot cover more than 16pc of the total cost of production.
To be eligible, a programme must have a minimum cost of €250,000, with half of that being spent in Ireland. A 'cultural test', which will be designed by the Government, will be used to ensure that the unscripted productions 'contribute meaningfully to the promotion and expression of Irish or European culture'.
Anthony Muldoon, director of strategic policy at Screen Producers Ireland (SPI), said the tax incentive is a 'transformative' investment for Ireland's creative industry. 'It will empower our producers and creators to develop and produce high-quality programmes that resonate with both domestic and international audiences,' he said.
Members of SPI had joined together to campaign for the tax credit, forming an Unscripted Working Group, and had co-operated with the Department of Finance and Revenue, as well as with the Department of Arts and Media.
Stuart Switzer, chair of the Unscripted Working Group, said he was thrilled that the European Commission had decided to approve the aid package. 'This is a first in Europe, and a recognition that the creative unscripted sector in Ireland has the potential to emulate the success of our scripted colleagues,' he said.
'The challenge will be to ensure the benefits of the incentive are retained within the independent production sector to build companies of scale.'
According to an analysis included in the Tax Strategy Group papers last year, spending on unscripted TV productions could increase from about €90m a year to €300m if a tax credit was introduced. It referred to two similar schemes in Europe, operated by Malta and Cyprus.
"If introduced, such a relief could have the potential to support additional employment in the sector and increase demand for studio space,' the report said.
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