According to the IFB, 'Irish production companies will now share in the IFB's own revenues, so that part of what would normally flow to the IFB towards its own recoupment, flows to the producer instead.'
As of July 1 the producer of a film or television project in which IFB invests will be entitled to an 'internal corridor' of 50%, subject to certain exceptions. In effect, half of the money invested by IFB is considered as money invested by the producer. IFB is deemed to have recouped when it has earned back half of its investment, the other half having been received by the producer. The internal corridor will not apply to net profits.
It is envisaged that the 'internal corridor,' the revenue recoupment relationship between the IFB and the producer, can be managed separately in this manner without impacting on 'external corridor' relationships with other, third-party co-financiers and investors through which the producer may have another recoupment position.
The incentive is available to all film and television projects in receipt of IFB production funding subject to certain exceptions (for example, regional support funding, television documentaries and short films).
A single approach is being applied to all other types of project - features, documentaries, animation and television drama - and all types of production and co-production, resulting in one basic principle which obtains for all deals with IFB, albeit with variations in a small number of particular cases.
The new Producer Recoupment arrangements are set out in the IFB's Producer Recoupment Guidelines. Films and television projects where financing contracts with the IFB were entered into before July 1 will not benefit from these new arrangements.
The operation and effectiveness of the scheme will be reviewed within two years.