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Government enhances Research and Development tax credit in Budget 2014 to support additional jobs in research and innovation
Minister Seán Sherlock TD, the Minister for Research and Innovation today (Tuesday, 15th October) welcomed the following improvements to the R&D tax credit:
· Increase in the amount of expenditure allowed on a full volume basis (i.e. without reference to the base year) from €200,000 to €300,000,
· Increase in the outsourcing limit from 10% to 15%, and
· Improvements to the “key employee provision”.
The Minister said that “these improvements will increase Ireland’s attractiveness as a location for Research and Development activity and will result in additional jobs during 2014”. The Minister also welcomed the statement of intent that the R&D tax credit base year will be phased out entirely over time as resources allow, in order to improve the overall international competitiveness of the regime.