Ireland’s Department of Finance has initiated a public consultation regarding the R&D tax credit and potential measures to foster innovation.
A tax credit regime for Research and Development (R&D) was introduced in Ireland in Finance Act 2004. The credit is available to all companies within the charge to Irish tax that carry out qualifying R&D activities.
As with all tax expenditures, the R&D tax credit is regularly evaluated to assess its continuing relevance, cost, impact, and efficiency of expenditure. In line with the Department’s Tax Expenditure Guidelines, and as announced in Budget 2025, an evaluation of the R&D tax credit will take place this year.
The Department of Finance is inviting replies from interested parties to the questions set out in Section 6 of the consultation document. Respondents are not obliged to respond to every question, however as the questions have been designed to be informative as to the policy considerations that will form part of the review, all questions outlined should be borne in mind in responding.
The consultation period will run until Monday 19 May 2025.
