Revenue Announces Evaluation of R&D Tax Credit Scheme

Revenue’s R&D tax credit scheme is a generous and widely used innovation incentive, offering eligible companies the opportunity to claim 30% of their R&D costs back on their Corporation Tax return.

The scheme has evolved significantly since its introduction in 2004, most recently by increasing the rate of relief (from 25% to 30%) and enabling companies to claim a larger portion of their payable credit up front.

This is in response to global trends, particularly related to research and development. However, the government also regularly reviews the scheme in relation to its users and whether it’s still fit for purpose for the way companies innovate.

To ensure that the scheme is still meeting Irish companies' needs, the government conducts regular consultations with the public. This consultation aims to ensure that the R&D tax credit scheme maintains its continuing relevance, cost, impact, and efficiency of expenditure.

This consultation comes at the same time as the government’s 2025 “Securing Ireland’s Future” programme, which prioritises economic and employment growth and investment in innovation, energy and decarbonisation. The government is looking at options to encourage domestic and international investment.

The Department of Finance is welcoming responses from any interested party regarding the R&D tax credit scheme. Respondents can answer as many or as few of the questions as they like.

Revenue has prepared seven sections for respondents to consider:

• Section 1 – General Queries
• Section 2 – Subcontracted R&D To a University or Institute of Higher Education
• Section 3 – Spill-Over Effects of Collaboration with Universities and Institutes of Higher Education
• Section 4 – Subcontracted R&D To Other Unconnected Third Parties
• Section 5 – Grant Funding
• Section 6 – The Future of Research and Development
• Section 7 – Other Observations or Feedback

The government is also fielding opinions on the meaning of innovation and how to reward companies engaging in development and digitalisation.

The full list of questions and additional details on the R&D tax scheme and the consultation can be found on the government’s page.

The consultation period will run to Monday 19 May 2025.

Respondents may give their opinions by email to businesstaxpolicy@finance.gov.ie, including “R&D Public Consultation” in the subject box. Alternatively, you may respond by post.