R&D tax credit comes into force

The 20% tax credit for research and development (R&D) expenditure, which was announced in December’s Budget, was brought into effect yesterday by Finance Minister Charlie McCreevy.

The new tax relief is available for R&D expenditure undertaken since January 1. Guidelines on the activities that qualify for relief were also announced yesterday.

Mr McCreevy said: “The tax credit for R&D will help to enhance our competitiveness as a location for new internationally mobile research-related investment.”