The impact of tax credits on the Irish games production landscape

too little, too late, too limited?

Abstract

The creative industries are a key part of our economy and a significant mode of expression for all demographics. As a significant global industry and a key form of cultural expression, digital games offer a way of linking technology, innovation, culture and economic growth. To capitalise on the potential of the digital games industry, the Irish government has introduced a tax incentive operating as a tax credit, operational from late 2022. Section 481A aims to incentivise the development of the digital games industry in Ireland, creating indigenous intellectual property, incentivising the creation of jobs, and harnessing potential spillover effects including regional development. However, there is little research on the impact of the tax incentive, or on the effectiveness of this measure. This research project aims to research Section 481A through empirical research with key stakeholders, including qualifying and non-qualifying game development companies, policymakers in the Department of Culture, Department of Finance and Department of Enterprise, and other relevant parties. This research project places this research into the wider context of European Union (EU) policy through a lens of state aid regulation. As a tax incentive, Section 481A is subject to EU state aid policy.