Ireland launches ‘first’ tax credit for European unscripted programming

The Republic of Ireland is launching a new tax relief for the unscripted production sector, covering documentary and reality television.

Simon Harris

The Tánaiste and minister for finance, Simon Harris, and the minister for culture, communications and sport, Patrick O’Donovan, unveiled the new tax credit over the weekend.

The relief will take the form of a corporation tax credit for expenditure incurred on the development of unscripted programmes and will be available at a rate of 20% of certain production expenditure up to a maximum limit of €15m (US$17.5m) per project.

The tax credit has been approved by the European Commission to run until December 31, 2028.

Billed as the first tax credit in Europe dedicated solely to unscripted programming, the credit is designed to support the expression of Irish and European culture in the unscripted sector and to grow Ireland’s audio-visual industry by attracting international investment as well as encouraging increased activity in the domestic space.

The relief is a cultural one, therefore a cultural test will also apply. In order to claim the credit, a company must first apply to the Minister for Culture, Communications and Sport for interim cultural certification in advance of undertaking production on a qualifying unscripted programme.

This certificate ensures that the production is genuinely seeking to promote Irish and European culture. On completion, and having met all conditions, producers may then apply for a final certificate, which allows the company to make a final claim for the credit.

In order to be eligible, the total cost of production must not be less than €250,000 and the eligible expenditure must not be less than €125,000. The credit is calculated at 20% of the lowest of eligible expenditure or 80% of total cost of production, or €15m.

Harris said: “I am delighted to announce the commencement of this Tax Credit for Unscripted Production which will provide certainty and support for a rapidly growing part of our audiovisual sector.

“Ireland has a brilliant reputation internationally as being a centre of excellence for film television and audio production.

“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.”