IFB Publish Report Highlighting Recommendations for Improvements to Section 481
In the first half of September Bord Scannán na hÉireann/the Irish Film Board (IFB) delivered a report on the tax incentive for film, Section 481, at the request of the Minister for Arts, Sport and Tourism Martin Cullen. This report, entitled Restoring Viability and Balance to the Irish Film Production Industry sets out the IFB's recommendations to amend Section 481 in the forthcoming Finance Act in the context of keys trends in the film industry and current economic circumstances.
With the current Section 481 legislation which extends to 2012, an increase in the tax incentive is recommended in order to restore the competitiveness of Ireland as an international film location. The report recommends that this can be achieved by increasing the investor write-off from 80 to 100%.
Commenting on this recommendation James Morris, Bord Scannán na hÉireann/the Irish Film Board Chairman said "As a direct result of this change, Ireland will be able to offer a 28% net benefit to international film producers to attract major feature films to shoot on location in Ireland, making Ireland an extremely competitive location for film production. In recent years the direct employment levels in the industry have increased substantially and this amendment will ensure that, despite the current economic climate, employment levels in the industry will be maintained"
The benefits of increased film production in Ireland include increased investment in the economy, increased employment in this sector, positive spinoff effects for promoting Ireland as a tourist location and the improvement of Ireland as an industrial location for all aspects of creative endeavors.
Whilst Ireland currently struggles to attract the type of large US studio film productions that chose Ireland as a film location in the past, IFB-funded film and television projects still contributed an estimated total of over €70 million to the Irish economy in 2008, showing a significant return on government investment in this sector. Improvements to our tax incentive for film production will have the direct effect of increasing this beneficial return to the economy.
Although the Government has not taken any action on these recommendations in the recently published Finance Bill, the IFB will continue to push the case for these amendments through the committee stages of the Bill over the coming weeks.