Public consultation on R&D Tax credit launched

The Department of Finance has launched a ‘Public Consultation on the Research &  Development Tax Credit and on Options to Support Innovation’. The consultation aligns with the commitment in The Programme for Government 2025  “Securing Ireland’s Future”  to examine options to enhance the R&D tax credit, reward innovation and digitalisation, and encourage innovation by domestic and international companies.

The consultation is centred around questions relating to the R&D tax credit regime, grouped into the following areas:

• General queries,
• Subcontracting activities to universities or institutes of higher education,
• Spill-over effects of collaborating with universities or institutes of higher education,
• Subcontracting R&D to unconnected third parties,
• Grant funding, and
• The future of R&D.

In the context of innovation, the consultation notes that a key first step in considering support options for innovation will be to develop a clear and robust definition of innovation. As the Department explores and considers its policy on innovation, feedback is requested from stakeholders in this area.

The consultation period runs until Monday, 19 May 2025. The Institute will be responding to this consultation, and we welcome any input from members to this process by email to tax@charteredaccountants.ie by 25 April 2025.