WEALTH July 20, 2026 0 Comments

Government’s New 40% Tax Credit for VFX: The Hidden Game-Changer That Could Explode Your Investment Returns Overnight

Ever wondered what it takes for a film or TV production to catch that golden ticket called a tax credit? Well, if your project’s visual effects budget hits at least €1 million, Ireland just threw a serious curveball into the game. The government has rolled out an enhanced film tax credit—bumping the VFX spend incentive up to a 40% credit on the first €10 million of eligible costs. That’s right—more bang for your buck, and a big nod to the creative muscle flexing behind the scenes. It’s not just a numbers game; this move is signaling to the world that Ireland’s punching above its weight in the high-stakes visual effects arena. With industry leaders buzzing about how this could keep top-tier talent homegrown while luring blockbuster projects, the question is—are you ready to stake your claim in the burgeoning Irish screen scene? LEARN MORE.

Film and television productions with at least €1m in visual effects expenditure will be eligible for an enhanced film tax credit, the government has announced.

The VFX Uplift to the Section 481 Film Tax Credit ensures that productions with sufficient visual effects spend will qualify for a 40% tax credit on eligible expenditure of up to €10m.

The standard Section 481 credit of 32% will apply on eligible expenditure above the €10m threshold.

The government expects the new measure to provide a significant boost to Ireland’s screen industry by making Ireland more competitive in attracting high-value visual effects work.

Announcing the VFX Uplift, Tánaiste Simon Harris said: “Ireland is already recognised around the world as a great place to make film and television.

“This new Visual Effects Uplift will help us build on that reputation by making Ireland even more competitive in attracting high-value productions.

“It will 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. This is about backing our creative sector and ensuring it continues to thrive.”

Minister for Culture Patrick O’Donovan said: “Building on the success of Section 481, this enhancement is a great opportunity in particular, to the Irish VFX industry but also the wider Irish screen industry.

“It shows the continued support this government has for our many talented creative sectors. I look forward to seeing the productions that will be created in the coming years as a result of this enhancement.”

The uplift will be available to productions that receive a cultural certificate from the Department of Culture, Communications and Sport and meet the qualifying conditions under the Section 481 Film Tax Credit.

Drew Banerjee, head of VFX Ireland and managing director of EGG Post Production & VFX, told RTÉ’s News at One that he was delighted with the change and said it would allow Ireland to grow as a global hub for visual effects.

He added that it would allow Irish visual effects artists to remain in Ireland and continue to work on top tier productions and that it would put Ireland on a level playing field with the UK, New Zealand and other regional hubs.

Desirée Finnegan, chief executive of Screen Ireland, said: “This enhanced credit for visual effects strengthens Ireland’s position as a leading hub for VFX and post-production work, highlighting the visual artistry and technical expertise of the Irish industry.

Film Tax Credit — Films with large visual effects budgets are eligible for a 40% tax credit on their spend. (Pic: Getty Images)

“Through the National Talent Academy for VFX, Screen Ireland is supporting skills development across the sector – and will continue to strengthen relationships with international studios and production partners to drive further growth and career opportunities for Irish companies and creatives.”

(Pic: Getty Images)