Ireland widens digital games tax credit to post-release content

The European Commission has authorised, without raising objections, an Irish State aid scheme that expands the tax credit for digital games to cover post-release digital content, in a decision adopted on 8 July 2026 and published in the Official Journal of the European Union on 4 September 2026. The measure, registered under aid number SA.122392, is designed to strengthen Ireland’s cultural video-game industry through 2031.

The decision was published in the C series of the Official Journal under reference C/2026/4728 and carries EEA relevance. It is an authorisation under Articles 107 and 108 of the Treaty on the Functioning of the European Union, in a case where the Commission raises no objections to the notified scheme.

A scheme aimed at the cultural sector

The measure, titled “Tax Credit for Digital games – Amendment to increase the budget and include Post-Release Digital Content”, is a scheme whose objective is classified as Culture. It takes the form of a tax base reduction, with an aid intensity of 26.0%, and targets the economic sector of publishing of video games.

The legal basis of the scheme is the Taxes Consolidation Act 1997, and the granting authority is the Department of Culture, Communications and Sport, based at New Road, Killarney, Co Kerry (V93 A49X).

Budget and duration

The amendment increases the overall budget of the existing credit and extends its scope to digital content released after a game’s initial launch.

• Overall budget: 78,900,000 EUR
• Annual budget: 13,800,000 EUR
• Aid intensity: 26.0%
• Duration: until 31 December 2031

What the extension means

By bringing post-release digital content within the scope of the credit, the scheme allows developers to claim relief on content produced and distributed after a game’s launch, a segment that has become central to the business model of the video-game industry. The Commission concluded that the measure is compatible with the internal market and therefore raised no objections.

For Irish studios and publishers, the decision provides regulatory certainty and a stable fiscal framework for investment in digital games over the next five years, reinforcing the country’s position as a hub for cultural and creative industries within the European Union.

Source: Official Journal of the European Union, C series, C/2026/4728, 4 September 2026, notices (official reference: C/2026/4728, aid number SA.122392).