Budget 2025: Lights, camera, tax break

Makers of shows such as 'Gogglebox Ireland', 'Name that Tune', and 'Ireland’s Fittest Family' have welcomed Budget 2025’s inclusion of the unscripted TV production tax incentive, describing as a potential game-changer for the sector.

On Tuesday afternoon, TV producers around the country were on alert for one particular section in Minister Jack Chamber’s budget speech as they waited for confirmation that he was going to announce a new tax incentive for unscripted TV productions.

This would be a first for their sector, and indeed an industry first for a EU member state.

At around 1.35pm, the minister confirmed that the previously proposed tax credit would now be formally introduced "in order to maintain momentum and expand the breadth of the Irish industry".

The industry was quick to publicly welcome the measure, with Susan Kirby, CEO of 'Screen Producers Ireland' saying that "the announcement today of a new unscripted fiscal incentive, subject to state aid rules, has the potential to be a game-changer for the Irish unscripted sector".

For Jamie Macken, the Director of Business Development and Corporate Affairs from BiggerStage productions, which has had considerable experience in bringing international TV shows to Ireland, it was a significant announcement too.

He told RTÉ News that it is a "big milestone" for independent television production in Ireland.

"A tax credit for unscripted production, alongside the great skills and infrastructure already in the market, will help Ireland become a powerhouse for television production, both locally and internationally."

Meanwhile, Darren Smith, MD of Kite TV, which produces many hit shows on Irish TV including Graham Norton and Davy Fitz on 'Ireland’s Fittest Family','Googlebox Ireland', 'IIreland’s Got Talent' and 'Last One Laughing' for Amazon Prime, agreed, and also told RTÉ News that "it has the potential to be a real game changer for our sector."

He explained the practical impact that the tax break, adding "we have the production skillset, the studio and post production facilities and are creative English speaking folk, so these are all factors that are likely to see Ireland become a global best in class in non-scripted production, just in the same way that we already are in animation and scripted production."

What is unscripted TV?

Clearly a broad and enthusiastic welcome there from the industry, but what does the term unscripted TV mean?

Screen Producers Ireland (SPI), which has been lobbying for the incentive, defines unscripted as falling within the larger non-fiction content umbrella.

This type of production was described by the organisation - which represents independent production companies across Ireland - as encompassing TV programmes like Room to Improve, Name that Tune, Dancing with the Stars, and Gogglebox.

The industry term is broad, and also includes other non-fiction genres, including documentaries and talk shows.

SPI's research identified eight common genres in unscripted outlined as - observational documentaries, docuseries, factual entertainment, factual, lifestyle, quiz, contest and game shows, studio and panel shows, and reality shows.

Perhaps an even more useful way to assess its definition is what is not considered unscripted programming, so that would include content such as creative documentaries (including documentaries with cinema release such as the recent 'Mrs Robinson' film), news and current affairs and sport.

Those creative documentaries can qualify for film tax relief such as Section 481.

How will the tax incentive for ‘unscripted production’ work?

The unscripted production tax incentive is designed to lower the cost of producing this kind of content in the country, by offering a tax credit of up to 20% on eligible expenditure.

The scope of the incentive covers both domestic and international productions and the relief will apply at a rate of 20% on all eligible expenditure, on 80% of the total cost of production up to a cap of €15m, and, similar to the other audio visual reliefs, projects will be required to pass the mandatory cultural test.

The idea to introduce this targeted incentive was first floated by Minister Pascal Donohoe in his 2022 budget speech after conversations with people in the TV production who had identified a tax incentive as a boost to the industry.

Since then, there has been an industry working group researching this area in tandem with production companies like BiggerStage, raising the issues with relevant Government departments.

The pitch from TV producers was that the well-established S481 relief for film and television productions was proving such a success, that a version of it (481 B?) which offers a tax credit for qualified expenses incurred in unscripted TV, could be transformative for the industry.

They argued that continued investment in the creative industries has played a key role in making the country a competitive destination for film and tv, so this added incentive would significantly boost the Irish entertainment industry.

By offering a financial incentive, they said, Ireland would aim to become a major hub for unscripted content production, a sector that is experiencing rapid growth worldwide.

Why should unscripted TV get State aid?

According to Anthony Muldoon, Director of Strategy for SPI who has been directly engaged in lobbying for this incentive, unscripted content has become increasingly popular among broadcasters and streaming platforms.

He points out that it has relatively low production costs compared to high end TV drama and feature films and has proven its ability to attract large, diverse audiences.

Mr Muldoon also argues that it is a significant employer in the audio visual industry and Irish production companies have good track records, which can be broadened internationally with this incentive.

Larry Bass, CEO of Shinawil, the Irish company behind shows such as 'Dancing with the Stars', and 'Home of the Year' is a veteran of the TV industry here and he says that "the introduction of this incentive can only be a good thing".

He points to the success of the animation and movie industry here and asks why Ireland shouldn't be at the forefront of unscripted content too.

Incentives in the audio visual sector have proven to be successful and that for TV producers like him, working in a 'failed market' here with so few real players in town, such as RTÉ, he would relish the chance to expand his content on the international stage.

For Jamie Macken at BiggerStage, there is proof that this kind of content is in demand.

His company has been specialising in large-scale TV production for the global market over the last few years.

They develop original content and have produced over 200 hours of primetime US network show including hits shows for Fox such as 'The Floor', 'Name that Tune' and 'Next level Chef' amongst many others and they have also been involved in advocating for this tax incentive.

Darren Smith points out the TV landscape has changed dramatically in recent years with legacy broadcasters battling with streamers and platforms like Netflix, Amazon Prime, and Disney+ for audiences.

Those new players have expanded their commitment to unscripted programming, recognizing the global appeal of content such as Tiger King on Netflix to Amazon Prime’s most watched original series in the UK, Clarkson’s Farm.

Irish TV production companies have track records in developing original unscripted content he says, and are hungry to expand their remit and this tax incentive will allow them to start developing highly marketable formats that generate significant viewer engagement.

"It could turn some pretty successful companies into real businesses... its a whole new strand."

Mr Smith explained that while Irish producers can get a meeting in LA with people in the TV industry there, "you rock up with your format, you get a nice meeting and then you leave and you never hear from them again".

In his view, this incentive could mean that Irish companies could now approach those key players and "if you can say that you can make it for 20% cheaper, you will get interest."

The reasons to support this incentive are also clear in Mr Muldoon’s view, saying "we have spent the last few years working on this, clarifying the potential impact and identifying the financial benefits."

They see the advantages as follows: growth for domestic production companies, job creation, crew skill development, and format development and opportunities to showcase Ireland as a backdrop to programmes which would lead to tourism boost for the economy.

According to Mr Macken, the tax credit will "add to Ireland’s reputation across the entire audio-visual sector, helping drive inward investment to support jobs, training, and creative development".

For Larry Bass, he is optimistic, saying that "Irish film and animation has had such Oscar success, it’s time for Irish television to take its place at the Emmys and bring global attention to our TV work and productions here".

What is the next episode?

The next episode in this saga, will be unveiled on Thursday 10 October when the finer details of the Finance Bill are published by the Minister.

If it is passed in the Dáil, then as it is a tax incentive that could favour a specific member state, it must go to the EU Commission for approval.

While Malta and Cyprus has TV industry state supports in place, they are not to this scale, so as such Ireland is the first EU member state to propose such an incentive.

This incentive is breaking new ground, but Irish producers are ready to tackle this next step.

So for now, we leave this story on a cliff hanger.

Will it, won’t it be successfully ratified? We will have to stay tuned to see.