Dáil Éireann Debate, Tuesday - 24 February 2026
364. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the number of firms that availed of the research and development tax credit in 2025, by firm size; and if he will make a statement on the matter. [14176/26]
Amharc ar fhreagra365. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the measures being taken to increase SME participation in the research and development tax credit, in view of recent analysis of uptake patterns; and if he will make a statement on the matter. [14177/26]
Amharc ar fhreagra366. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the regional distribution of research and development tax credit claims in 2025, including the number of claims from the Mid-East region; and if he will make a statement on the matter. [14178/26]
Amharc ar fhreagraI propose to take Questions Nos. 364 to 366, inclusive, together.
The Research and Development (R&D) tax credit provides companies with a tax credit equal to 35 per cent of the qualifying expenditure incurred on qualifying R&D activities. The R&D tax credit, which was first introduced in 2004, is a broad measure available to companies within the charge to Irish tax who incur expenditure in the carrying on of qualifying R&D activities.
In relation to the Deputy’s query regarding the number of firms that availed of the R&D tax credit in 2025, it should be noted that this data is not yet available. I am advised by Revenue that statistics in respect of the R&D tax credit for 2024 will be published in Q2 2026, while data in relation to 2025 will be published in Q2 2027. The timeframe for publishing this data reflects corporation tax return filing deadlines and the time required to prepare data for statistical analysis. The latest Revenue Research & Development (‘R&D’) Tax Credit Statistics report, which contains data for the years 2012 to 2023 was published in May 2025 and is available on the Revenue’s website at:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf
The report includes analysis of claimant companies by company size, based on employee numbers as set out in Table 7 and by reference to the Revenue Division that has responsibility for the company’s tax affairs as set out in Table 8.
I am advised by Revenue that data on the regional distribution of claimants of the R&D tax credit is not currently collated and validated, therefore the statistical breakdown requested by the Deputy is not available.
I am mindful of the need to encourage more SME companies to engage with the R&D tax credit and to ensure that the regime remains competitive when compared against other jurisdictions.
The restructuring of the credit in 2022 to align with newly agreed international definitions of ‘Qualified Refundable Tax Credits’ introduced a new fixed three-year payment structure and removed caps which had previously applied on the repayable element of the credit. This has accelerated the benefit of the R&D tax credit for many claimant companies, including small and start-up companies and those engaged in smaller R&D projects.
In addition, a new first-year payment threshold was introduced, with claims for R&D tax credit of up to that amount being payable in full in the first year of claim rather than spread over three years. The threshold was introduced at €25,000 in Finance Act 2022 and has been subsequently increased, now standing at €87,500. This provides further cash-flow support by accelerating payment of the credit for smaller R&D projects.
The R&D data for 2023 shows an increase in the number of companies claiming the R&D tax credit and data suggests that this was mainly due to smaller claimant companies engaging with the regime.
The Deputy may also be aware of the recent publication of the Research and Development Tax Credit and Innovation Compass by my Department. The Compass sets out a pathway for further policy considerations for the R&D regime and on supports for innovation, demonstrating the Government's continued focus on supporting productive and innovative businesses in the State.
