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Amendment of section 481 of Principal Act (relief for investment in films)
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45. (1) Section 481 of the Principal Act is amended—
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(a) in subsection (1)—
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(i) in the definition of “film corporation tax credit”, by the substitution of “subsections (1B), (1C) and (1D)” for “subsections (1B) and (1C)”, and
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(ii) by the insertion of the following definitions:
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“ ‘relevant visual effects work’, in relation to a visual effects project, means work consisting of such visual effects processes as may be specified in regulations made under subsection (2E);
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‘visual effects’ means the use of computer technology to digitally create or manipulate content whether such content is for inclusion in a film or within filmed footage for inclusion in a film;
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‘visual effects project’ means—
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(a) a qualifying film—
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(i) where production by the qualifying company consists wholly or mainly of relevant visual effects work, and
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(ii) in respect of which the eligible expenditure on relevant visual effects work is not less than €1,000,000,
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or
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(b) a qualifying film in respect of which the qualifying company incurs eligible expenditure of not less than €1,000,000 on relevant visual effects work;”,
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(b) by the insertion of the following subsection after subsection (1C):
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“(1D) (a) Where a producer company expects a film to be a visual effects project, the producer company, in making its application under subsection (1A), may apply for the certificate mentioned in that subsection to specify, in addition to that mentioned in that subsection, that an increased film corporation tax credit (in this section referred to as the ‘enhanced credit amount for visual effects’) may apply as provided for in paragraph (c).
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(b) In considering whether, in the certification applied for, he or she should specify that the enhanced credit amount for visual effects may apply, the Minister, in accordance with regulations made under subsection (2E), shall have regard to whether the film is expected to satisfy the criteria set out in paragraph (a) or (b) of the definition, in subsection (1), of ‘visual effects project’.
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(c) Where—
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(i) the certificate issued under subsection (2) specifies that the enhanced credit amount for visual effects may apply,
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(ii) on completion of production, the qualifying film satisfies the conditions and obligations required by this section, and
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(iii) the qualifying film is a visual effects project,
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then, subject to paragraph (d), the producer company shall—
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(I) in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit amount for visual effects as if, in the definition, in subsection (1), of ‘film corporation tax credit’, ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, or
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(II) where a claim has been made for the film corporation tax credit under subsection (2G)(b)(i), in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit amount for visual effects as if, in the definition, in subsection (1), of ‘film corporation tax credit’, ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, less any amount already claimed pursuant to subsection (2G)(b)(i).
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(d) Where, in relation to calculating the value of the enhanced credit amount for visual effects under clause (I) or (II), as the case may be, of paragraph (c), in respect of a visual effects project, the lowest of the amounts referred to in paragraphs (a) to (c) of the definition, in subsection (1), of ‘film corporation tax credit’ (referred to in this paragraph as the ‘qualifying amount’) exceeds €10,000,000, then the total value of the film corporation tax credit for the visual effects project shall comprise—
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(i) an enhanced credit amount for visual effects equal to 40 per cent of €10,000,000, and
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(ii) an amount equal to 32 per cent of the amount by which the qualifying amount exceeds €10,000,000.”,
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(c) in subsection (2)—
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(i) in paragraph (a), by the substitution of the following subparagraph for subparagraph (ii):
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“(ii) specifying—
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(I) whether or not the regional film development uplift applies, if appropriate,
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(II) whether or not the enhanced credit for lower budget film may apply, if appropriate, or
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(III) whether or not the enhanced credit amount for visual effects may apply, if appropriate.”,
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and
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(ii) in paragraph (b)—
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(I) in subparagraph (iv), by the deletion of “and”,
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(II) in subparagraph (v), by the substitution of “if appropriate, and” for “if appropriate”, and
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(III) by the insertion of the following subparagraph after subparagraph (v):
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“(vi) the criteria referred to in subsection (1D)(b), if appropriate,”,
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and
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(d) in subsection (2E)—
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(i) by the insertion of the following paragraph after paragraph (ba):
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“(bb) specifying the visual effects processes that may be regarded as relevant visual effects work for the purposes of an application for, and certification in respect of, the enhanced credit amount for visual effects in accordance with this section,”,
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(ii) by the insertion of the following paragraph after paragraph (i):
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“(ia) in relation to the matters referred to in the definition, in subsection (1), of ‘visual effects project’, governing the eligible expenditure incurred by the qualifying company on relevant visual effects work for the purposes of the calculation of the enhanced credit amount for visual effects in accordance with this section,”,
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and
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(iii) by the insertion of the following paragraph after paragraph (lb):
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“(lc) specifying the criteria to be considered by the Minister, in relation to the criteria referred to in subsection (1D)(b)—
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(i) in deciding whether, in the certificate applied for under subsection (1A), he or she should specify that the enhanced credit amount for visual effects may apply, and
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(ii) in specifying conditions in such a certificate, as provided for in subsection (2)(b),
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and the information required for those purposes to be included in the application made to the Minister under subsection (1A) by a producer company,”.
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(2) Subsection (1) shall apply to a qualifying film (within the meaning of section 481 of the Principal Act) in respect of which the Minister for Culture, Communications and Sport issues a certificate (within the said meaning) after the coming into operation of this section.
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(3) This section shall come into operation on such day as the Minister for Finance may, by order, appoint.
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