.png)
R&D Funding
As part of ‘Budget 2024’, and with the aim of increasing innovation in Ireland, the government announced an increase in the R&D Tax Credit rate from 25% to 30% of qualifying expenditure. This will enable eligible companies to receive increased tax relief in the coming years.
What is R&D Tax Relief in Ireland?
Research and Development (R&D) Tax Relief is a government incentive designed to support companies that work on innovative projects in science and technology. This relief is available to a wide range of companies that seek to advance knowledge or capability in a specific field. The aim is to encourage businesses to invest in research and development by reducing their tax liability or providing cash credits. It is not limited to laboratories or scientists; businesses from various sectors, including manufacturing, architecture and construction, veterinary medicine, and farming, can qualify if they meet the criteria set by The Revenue Commissioners.​
The Revenue Commissioners has a specific definition of R&D for tax purposes. It defines R&D as work that seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty.
R&D Tax Relief Calculator-Example:
Your eligible R&D costs
If, for the year ending 31 December 2024, your qualifying R&D expenditure includes:
Staff costs
€200,000
Sub Contractor costs
€40,000
Materials & Equipment
€10,000
Tax credit calculation
Your total eligible costs are multiplied by Ireland's 30% R&D tax credit rate.
Total eligible R&D costs: €250,000
Tax credit rate:
30%
Your R&D Tax Credit
€75,000
When you'll receive your money
If approved on the 15th May 2025, your €75,000 tax credit is paid in three instalments:
1st Payment
2nd Payment
3rd Payment
15th May 2025 €50,000
15th May 2026 €15,000
15th May 2027 €10,000
The Revenue Commissioners Eligibility Criteria
1
Advancement in Science or Technology
The project must aim to make an advance in the overall knowledge or capability in a field of science or technology, not just within the company.
2
Overcoming Uncertainty
The project must involve overcoming scientific or technological uncertainty that a professional in the field cannot readily resolve.
3
Qualifying Costs
Eligible costs include employee wages, materials, software, utilities, and subcontractor costs directly and indirectly related to the R&D activity.
Common Misconceptions
Large Companies Only
Both SMEs and larger enterprises can benefit. The scheme rewards innovation regardless of company size, allowing all enterprises to claim for a percentage of their qualifying costs. We have produced claims for companies with headcounts ranging from five employees to hundreds of employees.
Must be Successful
Projects do not need to be successful to qualify. The focus is on the attempt to resolve uncertainty and achieve innovation.
Only for Scientists
R&D Tax Relief is not exclusive to high-tech industries or scientists. Businesses in fields such as manufacturing, architecture and construction, veterinary medicine, and farming can also qualify.