Dáil Éireann Debate, Tuesday - 26 April 2022
531. Deputy Rose Conway-Walsh asked the Minister for Finance if accessing research support funding from Enterprise Ireland, IDA, Disruptive Technologies Fund or any other Government programme that financially supports research and development in the private sector impacts a company’s ability to access the R&D tax relief; and if he will make a statement on the matter. [21168/22]
View answerThe research and development (R&D) tax credit allows a company to claim a 25% tax credit in respect of expenditure incurred on qualifying R&D activities. In making a claim for the R&D tax credit, companies must satisfy two tests: the activity must be a qualifying activity (a science test); and the amount of the claim must be based on R&D expenditure incurred (an accounting test).
A company that receives research funding from Enterprise Ireland, IDA, Disruptive Technologies Fund or any other Government programme that financially supports R&D activities may still qualify for the R&D tax credit where the company incurs qualifying R&D expenditure. Where R&D expenditure is met directly or indirectly by grant assistance from any of the bodies listed above, or from any State or other body, that expenditure will not be considered as having been incurred by the relevant company and therefore would not qualify for the R&D tax credit. That is, the company can claim the 25% tax credit on expenditure incurred on R&D as reduced by any grant assistance received in respect of the same R&D activities.
