Ireland’s Department of Finance in 2013 undertook a comprehensive review of the Irish research and development (R&D) tax credit regime, to determine that the R&D tax credit provides “value for money” for taxpayers.
The review had 5 key pillars:
- Economic analysis;
- Analysis of Revenue data of R&D tax credit claims;
- Public consultation;
- Survey of R&D active companies; and
- International review.
The review found that of the €379 million in State support of R&D, €261 million was delivered through the R&D tax credit regime. The tax credit currently supports over 1,400 companies, who between them have a turnover of nearly €100 billion and employ almost 150,000 people. The credit also supported 70% of business expenditure on R&D (BERD) in 2011, which stood at €1.86 billion.
