...to be budgeting... and it seems Christmas may have come a little early for the, ahem, hard-pressed film and tv producers who depend 100% on Section 481. (a bit of irony here).
The relief is to be extended. More later on the detail.
From Minister Noonan's speech...
This year, my Department carried out an Economic Impact Assessment of the current Film Tax Relief Scheme widely known as Section 481. In light of the Report’s findings, which I have published today, and after consultation with Minister Deenihan, and the film and TV industry in Ireland, I propose to:
- extend the Film Tax Relief Scheme to 2020;
- reform the operation of the scheme, by moving to a tax credit model in 2016, so as to ensure better value for tax payers money and eliminate the need for high income investors to provide the funding for the scheme; and
- enhance the scheme so as to make Ireland even more attractive for foreign film and TV productions.
These changes will rectify the anomaly by which investors received a disproportionate amount of the tax relief as opposed to the funds going to production.
These measures are designed to create additional jobs in the film industry.
This change of direction is not before time. Not one of the responses to the consultation, including that of the IFB, recommended a switch to a tax credit scheme or a better return for the taxpayer or increased funds going on the screen.
No definitive word yet on the IFB's budget for 2013. That detail will be announced by Minister Deenihan whose Arts, Culture and Film budget is down 5%. This may hide a bigger cut in capital (c. 10%) which might impact the IFB's funding. The IFB brought in €370,000 in recouped (external) capital this year and a figure of €500,000 has been estimated for next year.