Dáil Éireann Debate, Wednesday - 18 February 2026
50. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance to provide an update on the development of the R and D tax compass that was announced as part of budget 2026; whether it is intended that there will be engagement with interested stakeholders as part of this process; and if he will make a statement on the matter. [13407/26]
Amharc ar fhreagraThe Research and Development Tax Credit and Innovation Compass was published on 16th February 2026 and is available online at: www.gov.ie/en/department-of-finance/publications/research-and-development-tax-credit-and-innovation-compass
In line with the Tax Expenditure guidelines, tax measures are reviewed periodically to ensure that they continue to meet their policy objectives and offer taxpayer value for money. The Programme for Government ‘Securing Ireland’s Future’ made a commitment to review the Research and Development (R&D) tax credit regime and to examine options to enhance the R&D tax credit, reward innovation and digitalisation.
This review took place in 2025 and, as part of this process, a public consultation on the ‘R&D Tax Credit and on Options to Support Innovation’ was conducted. Twenty-six responses to the consultation were received from a range of respondents, including companies engaged in R&D activities, advisory firms, representative bodies and Government Departments. The responses to the consultation have been published on my Department’s website. In addition to the consultation, officials from my Department engaged with stakeholders throughout 2025, through meetings, roundtable discussions and prebudget submission meetings. This engagement provided valuable input into policy considerations for enhancing the regime, as provided for in Budget 2026, and helped to inform the pathway for further policy considerations for the R&D regime and on innovation as set out in the Compass.
Stakeholder engagement will continue to be an integral part of the policy development process, and I look forward to the continuing engagement of business stakeholders, advisors and representatives, government bodies and educational and research institutes with my Department as work in this area continues.
