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Animation Ireland calls for extension of 'crucial' tax relief

Cartoon Saloon
/ 30th August 2022 /
George Morahan

Animation Ireland, the group representing Irish animation studios, has called for the government to extend Section 481 tax relief beyond 2024 to ensure the continuation of international film and television production in Ireland.

The organisation said the tax credit for animated film and television had been "crucial" to sector's growth, with 42 studios now employing 2,500 people, compared to a decade ago when the industry employed just 70 people.

Section 481 provides tax relief on up to 32% of eligible spend for animation productions based on the cost of all staff working in Ireland, regardless of nationality, and includes relevant services purchased in Ireland.

Production companies must be Irish resident, trading for at least 12 months and not be connected to a broadcaster, and eligible projects must either past a cultural test or qualify as an official co-production under of Ireland's bilateral co-production treaties of the European Convention on Cinematographic Co-Production.

The Irish animation sector produces programming for global broadcasters such as Disney, Nickelodeon, Cartoon Network and the BBC and has been home to production of major international releases such as The Bob’s Burgers Movie, The Cuphead Show, and Vampirina.

In Association with

Animation Ireland Tax Relief
Ronan McCabe (right) has called for the government to extend tax relief for the Irish animation sector.

Animation Ireland said indigenous productions such as Cartoon Saloon's Oscar-nominated WolfWalkers as well as Two by Two: Overboard!, Jessy and Nessy, Kiva Can Do!, and Pins and Nettie had also benefited from Section 481.

Ronan McCabe, CEO of Animation Ireland, said; ‘’Section 481 has been crucial in the growth of the animation sector over the past ten years and without it, we just couldn’t compete on the global stage as we do now.

"The relief brings a huge number of jobs and expenditure into Ireland, but it also has an enormous positive impact on creativity and culture. Without Section 481, we might not have seen amazing Irish productions telling irish stories, such as the Oscar-nominated Wolfwalkers.’’

"We hope that the Minister for Finance will announce a five year extension of the relief up to 2029 and confirm that Section 481 is included as part of its long term policy for creative industries," he added.

"We would also like to see an extension of the regional uplift element of the relief, which will see more productions take place outside of Dublin and make it easier for studies to attract staff, generating employment in rural towns."

Last month, planning permission was granted for the development of Ireland's largest film and television studios in Westmeath.

Photo: WolfWalkers. (Pic: Cartoon Saloon)

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