Europe approves €20m scheme for cultural digital games
The European Commission has approved a €20 million Irish scheme to support the development of cultural digital games.
The measure, which was approved under EU State aid rules, is aimed at encouraging projects that contribute to a varied cultural landscape and that enrich the European digital audiovisual sector. It will be open to digital games development companies liable for taxation in Ireland.
Under the scheme, the support will take the form of tax credit up to €8 million per beneficiary. The maximum amount of the tax credit will be equal to 32% of the eligible costs, that is (i) the expenditure incurred on the development of a digital game spent in the European Economic Area, (ii) 80% of total expenditure incurred on the development of a digital game, or (iii) €25 million, whichever the lowest. The scheme will run until 31 December 2025.
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(d) of the Treaty on the Functioning of the European Union, which enables Member States to grant aid to promote culture and heritage conservation.
The Commission found that the scheme is necessary and appropriate to facilitate the development of cultural and educational video games. Furthermore, the measure will contribute to promoting culture. The Commission concluded that
The measure was approved by the Commission on the basis that it is proportionate, i.e., limited to the minimum necessary, and will have a limited impact on competition and trade between Member States.
The non-confidential version of the decision will be made available under case number SA.102047 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
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