New measure will support post-release game development for up to three years, strengthening Ireland’s appeal as a location for digital games investment.
Ireland’s digital games sector is set for a further boost after the European Commission approved the expansion of the State’s Digital Games Tax Credit to include post-release content, a move designed to support studios as games continue to evolve long after launch.
Tánaiste and Minister for Finance Simon Harris, TD, and Minister for Culture, Communications and Sport Patrick O’Donovan, TD, welcomed the approval, which extends the Section 481A Digital Games Tax Credit to cover eligible expenditure on content developed after a game’s initial release.
“Modern games don’t stop evolving on launch day, and it’s important our tax system keeps pace with the way the industry works todayexcis”
The measure, first announced in Budget 2026, reflects the changing nature of modern game development, where updates, new features, downloadable content and additional levels are often developed and released for years after a game’s debut.
Under the expanded scheme, eligible post-release development expenditure can be supported for up to three years following launch.
The relief will continue to be available 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-release and post-release development costs. The minimum development expenditure threshold remains €100,000.
Game on … and on …
Industry stakeholders are currently working with Government on regulations needed to support the measure before it is formally commenced.
“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 Minister Harris.
“Extending the credit to eligible post-release development means we are supporting studios through the life of a game, not just until its initial release.
“This is another practical step the Government is taking to back Ireland’s creative industries,” Harris continued.
“It builds on the recent commencement of the enhanced VFX tax credit and reflects our commitment to creating the right environment for creative businesses to invest, innovate, create high-quality jobs and bring Irish creativity to audiences around the world.”
The Government said the extension recognises the growing importance of ongoing development in the games industry and aims to encourage studios to invest in long-term projects while supporting the creation of culturally significant Irish and European content.
Patrick O’Donovan said the decision sends a strong signal about Ireland’s ambitions for the sector.
“I welcome the European Commission’s decision to approve the extension of the Digital Games Tax Credit to include post-release content.
“This measure recognises and supports the considerable creative work that continues long after a game’s release. This is a significant indicator of this government’s support for the digital games industry in Ireland.
“It shows our ambition to strengthen Ireland’s place in the global digital games industry and adds to the suite of incentives already in place for Ireland’s screen Industry.”
The Department of Finance said access to the post-release element of the credit will be available to digital games development companies that have already secured an interim cultural certificate from the Department of Culture, Communications and Sport and have qualified for the tax credit in relation to pre-release costs.
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