Ireland has officially introduced a new visual effects (VFX) uplift to its Section 481 film tax credit, increasing support for high-end visual effects work as the country looks to strengthen its position in the increasingly competitive global production market.

Announced by Tánaiste and Minister for Finance Simon Harris and Minister for Culture, Communications and Sport Patrick O'Donovan, the incentive raises the tax credit to 40% on up to €10 million of eligible VFX expenditure for productions spending at least €1 million on visual effects in Ireland. Eligible expenditure above the €10 million threshold will continue to qualify for the standard 32% Section 481 tax credit.

The uplift, which delivers on a commitment in the state’s Programme for Government, is designed to attract higher-value post-production work, encourage inward investment and support the continued growth of Ireland's VFX sector. The measure is available to productions that obtain a cultural certificate from the Department of Culture, Communications and Sport and meet the existing eligibility criteria under the Section 481 scheme.

Harris said the new incentive would make Ireland “even more competitive in attracting high-value productions”, adding that it would “support investment, create highly skilled jobs and provide new opportunities for Irish talent and companies working in one of the fastest-growing parts of the screen industry”.

O’Donovan described the uplift as “a great opportunity” for both the Irish VFX industry and the wider screen sector, saying it demonstrated the government’s “continued support” for the country’s creative industries.

Screen Ireland CEO Désirée Finnegan also welcomed the measure, saying the enhanced credit “strengthens Ireland's position as a leading hub for VFX and post-production work” while highlighting the country’s “visual artistry and technical expertise”. She added that the agency would continue to support skills development through the National Talent Academy for VFX, and strengthen relationships with international studios and production partners.

The measure entered into legal effect on 10 July following the signing of the relevant commencement order by the Minister for Finance on 7 July. Further guidance on applications and claims is expected to be published by the Department of Culture, Communications and Sport and the Revenue Commissioners.