Film industry: The relief available for investment in film production has been significantly increased in the Finance Bill.
At present the relief available ranges between 55 and 66 per cent depending on the film budget, but the bill will now raise this to 80 per cent. In addition, the ceiling on qualifying expenditure for any one film rises from €15 million to €35 million.
The film industry last night predicted the changes would result in more international companies choosing to film in the Republic.
Over recent months the Minister for Arts, Sport and Tourism, John O'Donoghue, has been lobbying to have changes made. He recently said on a trade mission to India that if Ireland wanted to attract Bollywood-type movies, the €15 million ceiling would have to be increased.
The Government said the changes would need European Commission approval. Screen Producers Ireland (SPI), which represents the independent production sector, welcomed the Minister's decision.
However, Declan O'Neill, tax partner with Ernst & Young, said while the aim was to attract big budget movies to Ireland, the film relief expired on December 31st, 2008.
"Given the lengthy planning in pre-production, any delays in getting this clearance will result in a small window of opportunity for producers. Surely the Minister will now seek to extend the qualifying investment period beyond 2008," he said.
