As California looks to boost its annual film tax credit to $750 million, serious competition is coming from across the pond. Ireland isn’t just offering stunning landscapes and world-class crews—it’s backing productions with one of the most competitive tax incentives in the world.

At SXSW, Irish Prime Minister Michael Martin joined Cinetic CEO John Sloss, filmmaker Jess Varley, and producer Tristan Orden Lynch to highlight what makes Ireland a prime destination for film and TV productions. The panel, held at Ireland House in Austin, focused on Section 481, the country’s tax incentive, which currently offers a 32% credit on eligible Irish expenditures—and is about to get even sweeter.

Starting soon, productions with budgets under $21.7 million (€20 million) will see that credit jump to 40%, making it one of the most attractive incentives in the industry. But what really sets Ireland apart? Unlike many jurisdictions where tax rebates can take years to come through, Ireland pays out 90% upfront.

Why That 90% Advance Matters

For independent productions, cash flow is everything. In places like New York, tax credits can take three to four years to pay out. That delay forces filmmakers to borrow against the credit, increasing costs and pushing productions into risky financial territory. In Ireland, 90% of the incentive is available right away, eliminating financing headaches and keeping productions on track.

“That doesn’t happen anywhere else in the world,” said producer Tristan Orden Lynch at SXSW.

Sloss, who produced Richard Linklater’s Blue Moon in Ireland, called the 90% upfront payment ‘absolutely essential.’ Without it, productions risk using the tax credit as “gap financing” and accumulating extra debt. Sony Pictures Classics recently acquired Blue Moon, which stars Ethan Hawke, Margaret Qualley, Bobby Cannavale, and Andrew Scott. The film passed Ireland’s “cultural test” because Scott, an Irish actor, was in a lead role, and Irish crews ran the production.

Beyond the Credit: Strategic Advantages of Filming in Ireland

It’s not just about the financial incentives. Producing in Ireland automatically qualifies a project as European, making it more attractive to European distributors and broadcasters. This advantage opens up additional financing, partnerships, and sales opportunities.

Producer Lynch, whose series Mix Tape filmed in Ireland and Australia, emphasized how this European classification raises a project’s market value and boosts distribution potential.

For filmmaker Jess Varley, Ireland’s tax credit allowed her SXSW world premiere, The Astronaut, to stretch its budget further. Though set in Virginia, the film found the perfect remote locations in Ireland’s national forests. Even the film’s space capsule scene—originally envisioned for a major water tank—was brought to life in Bray Harbor using a custom-built foam structure designed by Irish production designers.

Varley’s producer, Brad Fuller, had such a smooth experience shooting in Ireland that he immediately set his next project—the Christopher Landon-directed Blumhouse film Drop—in the country as well.

Ireland’s Booming Production Sector

It’s no surprise that six major projects at SXSW were filmed in Ireland, including:

•The Drop (Blumhouse)

•The Astronaut (Kate Mara, Laurence Fishburne)

• Mix Tape

•The Surfer (Nicolas Cage)

• Hallow Road

•Retirement Plan (Animated Short)

Ireland’s national film agency, Screen Ireland, has been investing heavily in workforce development and infrastructure, supporting over 12,000 skills development placements and investing more than $130 million (€120 million) in the Irish screen industry between 2021 and 2024. Over that time, Ireland produced:

• 116 feature films

• 64 TV series

• 120 short films

Ireland’s Incentive: A Model for the Future

While Hollywood studios and indie filmmakers alike are recalculating their budgets in today’s cost-sensitive production climate, Ireland’s 40% rebate and 90% upfront tax credit stands out as a game-changer. As more jurisdictions compete to attract productions, Ireland’s combination of financial security, a highly skilled workforce, and EU benefits makes it a top-tier destination for film and TV.