The Irish government has written into law an enhanced Section 481 tax credit for visual effects — a 40% credit triggered by €1m or more of VFX spend in Ireland.

Key details

• The enhanced 40% film tax credit applies to all eligible production, post-production and VFX spend, once triggered by VFX spend of €1m.
• Principal photography does not need to take place in Ireland.
• The 40% rate applies to the first €10 million of total eligible spend. Once a production spends €1m on VFX, it receives 40% on all eligible spend up to €10m. Expenditure above that is credited at the standard 32%.
• Open to applications from 16 July 2026.

How it came about

Over recent months, the incentive was developed through close consultation between the Department of Culture, Communications and Sport and the Irish visual effects industry, coordinated by VFX Ireland. EGG's Dhruba Banerjee and Gareth Young were an integral part of the small industry working group that fed directly into the process.

Official announcement: Department of Finance press release