R&D tax credit move ‘will help to drive innovation’

IMPROVEMENTS to &research and development (R&D) tax credits have been welcomed as a means of growing both the Small and Medium Enterprises (SME) and multinational sectors.

Yesterday’s budget proposals allow for the first €100,000 worth of R&D expenditure — of all companies — to be counted on a volume basis, for the purpose of the R&D Tax Credit.

There will also be improvements made to the outsourcing arrangements for R&D purposes and companies will have the option to use some of the R&D credit to reward key employees who have been involved in development.