Finance Act 2024 provided a new film production tax incentive known as ‘Scéal Uplift’, increasing the headline film corporation tax credit rate from 32% to 40% for Irish feature film productions in certain circumstances and is termed the ‘enhanced credit for lower budget film’. ‘Feature film’ includes live-action and animated feature films. The additional incentive was subject to approval by the European Commission (confirmed as being received on 4 March 2025) and a commencement order, which has now been signed, with Scéal Uplift operational from 2 May 2025.
Where a producer company submitted an application to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media for certification between 4 March 2025 – 1 May 2025, transitional arrangements have been put in place to allow the company to reapply under Scéal Uplift until 3 June 2025. Therefore, if a producer company has submitted an application for certification within this timeframe, and believes their feature film will qualify for the uplift, they should act quickly to ensure a revised application is submitted by the 3 June 2025 deadline. Applications already submitted up to 4 March 2025 cannot now qualify for Scéal Uplift.
Qualification for the enhanced tax credit
In addition to the existing requirements which must be met to qualify for the film corporation tax credit, the following additional conditions apply to projects seeking to qualify for the increased 40% incentive –
- The total qualifying expenditure of the film does not exceed €20m,
- At least one key creative role involved in the production of the film is performed by an individual who is a national of, or is ordinarily resident in Ireland or another EEA State (details set out below), and
- The film is intended to be released to the public in Irish theatres for at least five days.
Definition of key creative role
For the purposes of the enhanced tax credit, the following roles are considered ‘key creative roles’:
- Director,
- Screenwriter,
- Editor,
- Cinematographer,
- Production designer,
- Composer, and
- Art director (animation only).
Guidance has been issued by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media clarifying that where multiple individuals are employed in the same role listed above, any one of the individuals can be considered to be performing a key creative role where their contribution is demonstrably equal to or greater than the contribution of the other individuals in that role.
Cultural certification and payment details
Where a production intends to claim the enhanced 40% tax credit, they must indicate this intention when submitting their application for certification to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and complete a dedicated section of the application form. Producer companies should note that the department has made a new application form available which includes this additional section. Where a producer company is submitting a revised application before the 3 June 2025 deadline, they should ensure they’re using this new application form.
Projects which will qualify for the enhanced 40% credit are still entitled to make a claim for the budgeted film corporation tax credit in advance of completion of the production which is based on up to 90% of the final tax credit, however any claim must be made on the basis of the 32% film corporation tax credit rate. On completion, the final claim should be made on the basis of the 40% tax credit provided the project qualifies for the uplift.
Saffery are leading experts in advising the film and TV sector in Ireland. If you have any questions, please reach out to one of our team.
