EU backing for extended games credit
The European Commission has approved an extension of a tax credit for digital games announced in Budget 2026.
The measure involved an extension of the section 481A Digital Games Tax Credit to include post-release content.
It required EU approval under state-aid rules.
The tax credit supports post-release development for up to three years, and is aimed at helping studios to invest for longer, create more high-quality content, and support increased expression of Irish and European culture in the world of digital games.
New features
It is intended to cover the evolution of games after their launch – including new levels, features, updates, and downloadable content.
The extended credit is granted at a rate of 32% of the lowest of:
- Eligible expenditure,
- 80% of qualifying expenditure, or
- €25 million (for the game as a whole, including both pre- and post-release expenditure).
The minimum amount that must be spent on the development of a game remains €100,000.
Regulations
The Government will commence the extension once regulations to support the measure are completed.
Access to the credit for post-release content will be available to digital-games development companies that have obtained an interim cultural certificate from the Department of Culture, Communications and Sport after commencement of the section.
“Modern games don’t stop evolving on launch day, and it’s important our tax system keeps pace with the way the industry works today,” said Tánaiste and Minister for Finance Simon Harris.
Minister for Culture, Communications and Sport Patrick O’Donovan has also welcomed EU approval.