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

The Programme for Government 2025 “Securing Ireland’s Future” highlights the requirement for a strong enterprise and fiscal framework which will prioritise economic and employment growth, competitiveness, fiscal responsibility, and investment in innovation, energy and decarbonization. There is a commitment to examine options to enhance the R&D tax credit, reward innovation and digitalisation and to encourage innovation by domestic and international companies.

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 document above. 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 to Monday 19 May 2025.

Any submissions received after this date may not be considered.

How to Respond

The preferred means of response is by email to: businesstaxpolicy@finance.gov.ie.

Please include R&D Public Consultation in the subject box.

Submissions received will be acknowledged within one working day.

If you do not receive a confirmation of receipt, please contact the Department to ensure your submission has been received.

Alternatively, you may respond by post to:

Research & Development Tax Credit – Public Consultation,

Department of Finance,

Government Buildings,

Upper Merrion Street,

Dublin 2, D02 R583

Please include contact details if you are responding by post.

When responding, please indicate whether you are contributing to the consultation process as a

professional adviser, representative body, business representative or member of the public.

Freedom of Information

Responses to this consultation are subject to the provisions of the Freedom of Information Acts

(FOI). Parties should also note that responses to the consultation will be published on the website

of the Department of Finance. Parties should clearly indicate where their responses contain

personal information, commercially sensitive information or confidential information which they

believe may be exempt from release under FOI or would prefer not to be published.

Meetings with key stakeholders

The Department of Finance and Revenue may also invite key stakeholders to meet with them,

including representative bodies, tax professionals and other interested groups or individuals.

After the Consultation

Tax policy issues from this public consultation will form part of the Minister for Finance’s considerations in relation to policy and relevant legislation.