Dáil Éireann Debate, Tuesday - 29 September 2026
321. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance if he will act to improve the employment investment incentive scheme as recommended by the report of the Cost of Business Advisory Forum. [68415/26]
Amharc ar fhreagraThe Employment Investment Incentive provides a platform for investment in certain SMEs. It provides tax relief for individuals who purchase qualifying trading company shares. The relief aims to encourage individuals to provide equity-based finance to trading companies, to assist companies to raise finance to allow them to expand and create or retain jobs.
The Employment Investment Incentive (EII), the Start-Up Relief for Entrepreneurs (SURE) and Start-Up Capital Incentive (SCI) are provided for by Part 16 of the Taxes Consolidation Act 1997 (TCA 1997).
The reliefs are State aid and come under the terms of Regulation (EU) No. 651/2014, known as the State Aid General Block Exemption Regulation, or GBER, which allows certain categories of State aid to be granted without prior notification by Member States to the European Commission.
The current GBER is due to expire on 31 December 2026. The European Commission is reviewing the GBER, in line with the EU’s Competitiveness Compass and the Clean Industrial Deal. The aim is to cut red tape and promote necessary investments, while keeping a level playing field in the Single Market. A final draft of the revised GBER expected Q4 2026 and will be effective 1 January 2027. The new GBER is expected in Q4 2026 after which time further potential amendments will be examined in the context of future Budgets.
The EII has undergone significant change in recent years following reviews and feedback from stakeholders. In line with my Department’s Guidelines on Tax Expenditures these tax incentives are regularly reviewed to ensure they continue to operate as intended supporting SMEs and the Irish economy, while also representing value for money for the Exchequer and the taxpayer. A high-level review of the Part 16 reliefs has been conducted ahead of the end-2026 sunset clause and was published as part of the Tax Strategy Group (TSG) papers.
The Final Report of the Cost of Business Advisory Forum was published recently, and this report contains 63 recommendations aimed at reducing business costs, strengthening competitiveness and easing regulatory burdens. Careful consideration is being given to these recommendations.
