Producers can recoup 20% of eligible costs but shows must pass a cultural test
Ireland has become the first country in Europe to introduce a dedicated tax credit scheme for unscripted programming.
The credit is designed to support Irish and European culture in the unscripted sector, as well as to grow Ireland’s audiovisual industry by attracting international investment and encouraging increased domestic productions.
The relief, initial details of which were unveiled last year, will take the form of a corporation tax credit for expenditure incurred on the development of unscripted programmes.
To be eligible for the credit, the total cost of production must not be less than €250,000 (£217,000) and the eligible expenditure must not be less than €125,000 (£108,000).
The credit is calculated at 20% of the lowest figure out of eligible expenditure, 80% of total cost of production or €15m (£13m) per project.
Indies must first obtain an interim cultural certificate from the minister for culture, communications and sport in order to claim the credit as the programme is being produced, rather than waiting until completion of the project before being able to make the claim.
Once an unscripted programme is completed, the production company can apply to the minister for final certification. Once they are satisfied that the eligibility criteria is met, the show passes the cultural test, and that any conditions stipulated in the interim cert have been complied with, the final certification can be issued.
Claims are limited to one season of a particular project in a 12-month period, though indies can make two or more claims for the credit in a year if they are for different projects.
The tax credit has been approved by the European Commission to run until 31 December 2028.
Simon Harris, Tánaiste (deputy prime minister) and minister for finance, said: “The introduction of this measure represents a further strengthening of Ireland’s tax incentives for the audiovisual sector, reinforcing the government’s long-standing commitment to supporting screen production and Irish creative industries.
“The Tax Credit for Unscripted Production is a natural addition to this and ensures that Ireland remains an extremely competitive location for audio-visual production now and into the future.”
Patrick O’Donovan, minister for culture, communications and sport, added: “This new tax credit is about backing Irish storytellers, producers and crews, while ensuring that Irish and European culture is clearly reflected on screens at home and around the world. By being the first in Europe to introduce a dedicated incentive for unscripted production, we are sending a strong signal that Ireland is open, competitive and ambitious when it comes to creative investment and cultural expression.”
The new tax credit comes as Irish PSB RTÉ seeks to move away from in-house productions and contract external suppliers to develop and make its shows, including its documentaries.
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