Budget measures to help Irish companies scale their business at home

Encouraging investors to fund Irish businesses and startups

For established companies, a range of enhancements will be made to the R&D tax credit, first introduced in 2004.

Budget 2027 includes a €1bn commitment to help companies scale their businesses in Ireland.

Minister for Finance Simon Harris said the Ireland Strategic Investment Fund (ISIF) is launching the investment programme, aimed at creating the next generation of large Irish companies.

Established companies in Ireland and Europe have criticised the levels of capital available when seeking to expand their operations, with growing firms often relocating to other jurisdictions such as the US to grow. Mr Harris said the three-year programme would be ISIF's biggest ever investment. His Budget speech did not include specifics of the scheme but said ISIF, in co-ordination with Enterprise Ireland, will invest through a range of channels.

"We want to create an environment in which Irish businesses remain rooted in Ireland but can scale up and grow internationally," Mr Harris said.

Private investors will also be encouraged to invest in Irish businesses and start-ups. Mr Harris announced an extension of the Employment Investment Incentive, the Start-Up Capital Incentive, the Start-Up Relief for Entrepreneurs, and the Relief for Investment in Innovative Enterprises, also known as Angel Investor Relief. The corporation tax small company start-up relief will also be extended.

For established companies, a range of enhancements will be made to the R&D tax credit, first introduced in 2004. The existing limits for subcontracting to third-level institutions and third parties will be increased from 15% to 20%, and from €100,000 to €200,000. The first-year payment threshold will rise from €87,500 to €105,000, to provide cash flow support to smaller R&D projects, along with other improvements.

The Knowledge Development Box regime will be extended by a further five years to encourage the creation of intellectual property in Ireland. The Minister also tweaked rules for companies paying corporation tax, including increasing the threshold up to which a company is considered to be a small company.