Drawing attention to Ireland’s Animation Industry

Animation Ireland publishes pre-budget submission 2025

Ronan McCabe, CEO, Animation Ireland. 10/09/2024

Animation Ireland is the representative trade body for Ireland’s animation studios across the island and our 2,500 strong, highly skilled, workforce is producing award winning, globally recognised, quality animation that’s viewed in over 180 countries and territories worldwide. Animated screen content plays a vital role in the perception of Ireland globally and is an essential element of our cultural exports. Through animated content, Ireland’s diverse storytelling voices are seen and heard across the world.

The animation industry in Ireland comprises two major components, Service Work, where Irish animation studios produce animation for international partners and Intellectual Property (IP) Work where Irish animation studios develop and produce their own content. 

Ireland’s great storytelling tradition, our highly educated and skilled workforce, our educational and training environment and the cooperation of stakeholders and funders all have a role to play in Ireland’s success. However, a key component of that success is Ireland’s tax credit regime. The global success of Irish animation can be directly linked to the introduction of Government investment in the animation and live action screen sector through the Section 481 Tax Credit. 

Over the last number of years, through the Section 481 Tax Credit, Ireland has been home to many major animated productions including Transformers, The Cuphead Show, Fairly Odd Parents, My Little Pony, Grimsburg, Rick and Morty, and many more. These productions alone saw investments in Ireland of tens of millions of euros and served to showcase our wealth of creative talent. 

It is not only international stories that are told by Irish animation studios. The Section 481 Tax Credit also supports indigenous production. Recent examples of this vital investment include Wolfwalkers, Fia’s Fairies, The Canterville Ghost, Puffin Rock and Friends, The Ghastly Ghoul and many more. 

For Ireland to remain successful internationally our tax credit must keep pace with our competitors. In recent years, our global competitiveness has declined, as other countries have moved to increase their screen incentives. Within a highly competitive global production marketplace, Ireland is in danger of falling short and action must be taken without delay to regain our foothold as world leaders in the sector. Our ability to expand and sustain Ireland’s world-class animation industry could be under threat without Government intervention. Animation Ireland call on government to create a 40% Nationwide Incentive for Independent Production up to a budget €20 million. 

The animation industry is not immune from the cost of living or housing crises that have affected Ireland. Decentralisation and regional production are an essential elements of the animation ecosystem. Our industry is well spread geographically and there are recognised hubs in Belfast, Kilkenny and Galway. Production activity increased in the regions when the Regional Development Uplift was introduced but there has been a commensurate decline with the removal of the incentive. Animation Ireland is calling on the government to reimagine and launch a new Regional Film Development Uplift at 8% ring fenced for a minimum of 10 years. The reintroduction of a regional tax incentive may take time to implement, so in the meantime Animation Ireland would like to see, the establishment of an Interim Regional Audiovisual Development Fund of €10 million + and the funding of a Regional Department within Screen Ireland.

Access Animation Ireland’s Pre-budget Submission 2025: