Ireland takes first step towards a Performing Arts Tax Credit
Ireland’s performing arts sector received an important boost yesterday with the announcement, as part of Budget 2027, that officials from the Department of Finance will work with the Department of Culture, Communications and Sport to review the tax treatment of theatre production costs.
The announcement follows a summer of advocacy around the potential for a dedicated performing arts tax credit in Ireland. This idea began in the Performing Arts Forum’s Producer Working Group and developed into a transformational thinking pitch at the Performing Arts Forum Gathering in Belfast in May.
The proposal, set out in a policy briefing from Performing Arts Forum, calls for the introduction of an Irish Performing Arts Tax Credit (IPATC): a targeted fiscal incentive designed to strengthen Ireland’s performing arts sector, encourage production and support long-term growth.
The idea draws inspiration from the success of the UK’s Theatre Tax Relief scheme and Ireland’s own Section 481 film tax credit. Rather than replacing public investment, a Performing Arts Tax Credit could complement existing funding by encouraging greater production activity, attracting private investment, supporting employment and helping Irish work reach wider audiences.
While Ireland has successfully used tax incentives to support the growth of its screen industry through Section 481, there is currently no equivalent fiscal mechanism for live performance. At a time when artists and organisations are facing rising production costs and increasing international competition, this places the sector at a disadvantage.
A well-designed tax credit could help retain creative talent, encourage new productions, strengthen regional touring and support sustainable careers across theatre, dance, opera, circus and live performance.
The potential benefits would extend well beyond the arts sector. Every production supports a wider network of jobs and businesses from designers, technicians and performers to hospitality, accommodation, transport and local suppliers. Increased touring could also bring cultural and economic benefits to communities across Ireland, contributing to regional development and the visitor economy.
The proposal is deliberately practical: to begin with a feasibility assessment and meaningful engagement across the sector, developing a model that reflects Ireland’s unique performing arts landscape while drawing on proven international approaches.
The Budget 2027 announcement marks an important first step. There is significant work still to be done as the proposal moves into a feasibility stage, but the decision to examine the tax treatment of theatre production costs creates an opportunity to explore how fiscal policy could support a more resilient, ambitious and internationally competitive performing arts sector.
The conversation that began within the Performing Arts Forum is now opening out. We are particularly interested in connecting with organisations, networks and colleagues internationally who are working on similar campaigns or exploring comparable approaches to fiscal support for the performing arts.