The European Commission has approved Ireland’s enhanced Section 481 Film Tax Credit, including a Visual Effects (VFX) Uplift, under State aid rules, introducing a 40% credit for qualifying VFX expenditure as part of Budget 2026 measures to strengthen the sector’s competitiveness.
The European Commission has approved Ireland’s enhancement of the Section 481 Film Tax Credit, known as the Visual Effects (VFX) Uplift, via a State aid authorisation published in the Official Journal of the European Union on 12 May 2026.
The measure, introduced through the Finance Act 2025, provides a 40% tax credit for qualifying VFX expenditure, applicable to up to EUR 10 million per production with a minimum spend of EUR 1 million. The approval, adopted on 7 April 2026 and published on 12 May 2026, is valid until 31 December 2028.
Ireland’s Tánaiste and Minister for Finance, Simon Harris, 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% rate of tax credit for productions with a minimum of EUR 1 million of eligible expenditure on relevant VFX work.
This rate will apply to eligible expenditure of up to a maximum of EUR 10 million per production. The standard rate of 32% 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.
