The Irish government has unveiled an 8% increase to the film and television tax incentive for low to mid-budget local productions featuring Irish creative talent, as part of its 2025 budget.

Ireland ‘s Section 481 film tax incentive now stands at 40% and is applicable to productions with a maximum global budget of €20 million ($22.1 million). It remains subject to state aid approval, with further details expected in an upcoming finance bill next week.

The budget 2025 also introduced a 20% tax incentive for unscripted production. Minister for Finance Jack Chambers unveiled the new measures, which aims to bolster domestic feature film production. The announcement also included recognition of the VFX industry’s growth potential.

The announcement comes amid a period of international recognition for Irish screen content. Recent milestones include Ireland’s Oscar candidate “ Kneecap ” winning at Sundance, “Small Things Like These” opening the Berlin International Film Festival, and five Irish films premiering at Cannes.

Screen Ireland, the national organization for the Irish film industry, welcomed the move. Chair Ray Harman stated: “The increase in the tax incentive has the potential to significantly expand the scope and range of local industry filmmaking, further building creative opportunities for local talent within the sector.”

CEO Désirée Finnegan added: “In a fiercely competitive global industry, the financial incentive together with Screen Ireland investment, is crucial in supporting Irish filmmaking and storytelling on screen, led by Irish creative talent. These enhancements support the continued development of Ireland as a cultural powerhouse and a creative production partner on a global scale.”

The enhanced incentives come in the wake of neighbor U.K.’s new Independent Film Tax Credit, which was introduced in March and is already having an impact.

As Ireland's film industry continues to grow, Screen Ireland has also ventured into the realm of digital gaming with IndieDev, a cross-border games prototype fund - a first of its kind in Ireland.