Ireland's new tax credit makes it so that developers in the country can be eligible to earn back 32 percent of their development costs.
Ireland has launched a new tax credit specifically for game developers. In a release provided to press, the Irish government said that credit was formed in an effort to capitalize on the country's already prominent presence in film and animation.
This is the first time Ireland has passed a tax credit aimed at supporting game development. Countries like France have had such credits in place since the mid-2010s.
With the Tax Credit for Digital Games, eligible developers in Ireland can claim back 32 percent of costs from a game's development, production, and testing.
To be eligible, a project must have a minimum requirement of €100,000 (or nearly $103,000) in spending, and a max spending limit of €25 million ($25.73 million) per project.
Said finance minister Paschal Donohoe, "this credit will be instrumental in replicating such successes in the digital gaming sector...and ensure that Ireland is competitive in an industry that is estimated to be worth up to €260 billion.”
Ireland's game industry is represented by its developer association Imirt. Craig Stephens, who serves on its board of directors, wrote that the Digital Games Tax Credit was "globally significant" and a boon to the country's game development community.
"It will welcome a new era of development creativity," said Stephens. "This credit will support our existing games development talent, plus attract major investment from overseas. Ireland is ideally positioned to secure more of the rapidly expanding $300 billion worldwide industry”.
The chairman of Ireland's revenue commissions board will sign the tax credit to go into effect for developers via remuneration on January 1, 2023.
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