The Irish film industry will get a boost from next month when the tax credit for movie projects jumps to €70m, an increase of €20m.
The measure was announced in last October's budget and on Tuesday it was confirmed that the new limit on section 481 will be increased from the beginning of May.
The Irish Film Board has welcomed the news, saying it will give a boost to international investment in the Irish film industry and generate "growth, jobs and exports in the sector".
Irish film enjoyed its most successful year ever in 2016, with nine Oscar nominations and a host of international box office hits, including Brooklyn, Room, The Lobster and Sing Street.
Recently crew members from the next Star Wars movie returned to Co. Kerry and other locations along the Wild Atlantic Way as plans move forward to film scenes for the latest instalment of the sci-fi blockbuster, after Skellig Michael featured so prominently in The Force Awakens.
DisneyLucasfilm's Vice President of Physical Production, Candice Campos said the company was "thrilled" to come back to Ireland.
"We want to thank the people of Ireland for their warm welcome and continued support. Ireland has become an important part of Star Wars history."
The Minister for Finance, Michael Noonan, said, "With this increased cap we will encourage the necessary investment in the provision of studio and other film production facilities."
"The Irish film industry has a large impact on our culture, our international reputation and recognition....I look forward to seeing many more quality productions from film makers in Ireland who have benefited from this incentive."
In Mr Noonan's native Limerick, plans are already well advanced to turn the former Dell Factory in Castletroy into a state-of-the-art film and TV studio. The facility is due to be up and running by the middle of this year.
