Tánaiste welcomes state aid approval for Visual Effects Uplift to the Film Tax Credit
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The Tánaiste and Minister for Finance, Simon Harris, has welcomed the European Commission's approval of the Visual Effects (VFX) Uplift to the longstanding section 481 Film Tax Credit.
This measure was announced as part of Budget 2026 to respond to specific competitive challenges being faced by the visual effects sector in Ireland, and delivers on the Programme for Government 2025 commitment to “Examine options to introduce sector specific measures for the visual effects sector”.
The Irish government has supported the development and expansion of the film sector and recognises the positive cultural impact that films have in educating, influencing attitudes, and promoting Irish and European culture internationally.
The VFX sector is an important part of the audiovisual industry in Ireland, and introducing this enhanced tax credit will support the continued growth and success of the sector domestically.
The measure will allow for a new 40 per cent rate of tax credit for productions with a minimum of €1 million of eligible expenditure on relevant VFX work. This rate will apply to eligible expenditure of up to a maximum of €10 million per production. The standard rate of 32 per cent will continue to be available in respect of eligible expenditure above this cap.
This VFX uplift will be available to qualifying productions for which cultural certificates are issued by the Department of Culture, Communications, and Sport following commencement of the section.
Work is underway to complete drafting of the Regulations necessary to underpin the new VFX provisions, and a commencement order will be signed by the Tánaiste and Minister for Finance in the coming weeks.
Speaking today, the Tánaiste said:
I am pleased that the Commission has approved this measure, and the Irish government looks forward to working with Screen Ireland and VFX industry stakeholders to further develop this sector in Ireland. The introduction of this measure will represent a continued strengthening of Ireland’s tax incentives for film productions in Ireland and complements the Government’s long-standing support to screen production and Irish creative industries.
Further information on applying for the measure and making a claim will be published on the websites of the Department of Culture, Communications and Sport and Revenue in due course.