In Revenue’s 2024 Budget, on the 10th October 2023, Finance Minister Michael McGrath announced two major enhancements to Ireland’s R&D tax credit initiative :
1.R&D tax credit rate increase
Revenue’s R&D tax credit rate will increase from 25% to 30%, this will be applicable on to claims made in 2025 for 2024 expenditure.
2.Doubling R&D Tax Credit Payment Threshold
The Finance Minister also doubled the first year’s R&D tax credit payment threshold, from €25,000 to €50,000. Again, this will affect claims made in 2025 for 2024 expenditure.
This threshold increase is predicted to benefit SMEs, particularly those with smaller projects, with the hope of encouraging more small businesses to utilise the incentive and grow their innovations.
Both improvements underscore the significance of the R&D tax credit program for Ireland’s innovation landscape, in attracting investors, skilled workforces, and boosting the overall economy.