A new 40% rate of tax credit for productions with a minimum of €1m of eligible expenditure on relevant VFX work will be available as part of the measures

Tánaiste welcomes EU confirmation of VFX tax credit

by · RTE.ie

Tánaiste Simon Harris has welcomed the European Commission's confirmation of its approval of the Visual Effects (VFX) Uplift which will be included in the section 481 Film Tax Credit.

The aim to roll out the measure was outlined in the Programme for Government 2025 with a commitment to "examine options to introduce sector specific measures for the visual effects sector".

It was subsequently announced as part of Budget 2026 to "respond to specific competitive challenges" being faced by the visual effects sector in Ireland.

Speaking today, the Tánaiste said he was "pleased that the Commission has approved this measure", adding that "the Irish Government looks forward to working with Screen Ireland and VFX industry stakeholders to further develop this sector in Ireland".

The measure will allow for a new 40% rate of tax credit for productions with a minimum of €1m of eligible expenditure on relevant VFX work.

This rate will apply to eligible expenditure of up to a maximum of €10m per production.

The standard rate of 32% will continue to be available in respect of eligible expenditure above this cap.

The VFX uplift will be available to qualifying productions across Film, TV drama, animation and creative documentaries.

The Section 481 tax credit has been designed to encourage both domestic and international production in Ireland and the enhanced 40% rate is intended to attract large-scale international VFX work and has been praised by industry bodies for positioning Ireland as a premier post-production hub.

Projects must pass a cultural test or meet official co-production requirements for which cultural certificates are issued by the Department of Culture, Communications and Sport.

The Tánaiste added that 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".

Work is under way 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.