Public Consultation on the Research & Development Tax Credit and on Options to Support Innovation

Ireland's R&D tax credit regime is undergoing a public consultation, running until May 19, 2025, aimed at enhancing Ireland’s competitiveness which is particularly pertinent in light of recent trade tariffs. Since its introduction in 2004, the R&D regime has provided a tax credit on qualifying R&D expenditures, with cash refunds increasing to 30% for qualifying R&D expenditure incurred from 1 January 2024. The Programme for Government is committed to examining options to enhance the R&D tax credit regime, reward innovation and digitalisation, and to encourage innovation by indigenous and international companies. Aligned with this, the Department of Finance is seeking insights on the regime's significance, impacts and challenges which may form the basis for enhancements to the regime.

The consultation is primarily focused on questions relating to the R&D tax credit regime, categorised into the following areas:

• General queries,
• Subcontracting activities to academia,
• Spill-over effects of collaborating with academia,
• Subcontracting R&D to unrelated 3rd parties,
• Grant funding, and
• The future of R&D

In addition, the consultation is seeking views from stakeholders on initial key scoping considerations to help formulate a potential policy in respect of innovation, and there are 4 specific questions in this regard that look to address the following:

• Defining innovation,
• Government objectives that a support should target,
• State aid framework of relevance, and
• Administrative oversights needed

EY will be responding to this Consultation.

Contacts

Please reach out to a member of EY’s Innovation Incentives team below if you would like to discuss this Consultation process.

Further details on the Consultation can be found here.  

• Ian Collins
• Enda Kelly
• Ross McKiernan
• Lyndsey Browne