{"id":927,"date":"2025-10-08T08:24:25","date_gmt":"2025-10-08T08:24:25","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ie\/insights\/articles\/budget-2026-everything-you-need-to-know-about-rd-tax-credits-changes-and-other-key-updates\/"},"modified":"2026-08-18T21:54:06","modified_gmt":"2026-08-18T19:54:06","slug":"budget-2026-everything-you-need-to-know-about-rd-tax-credits-changes-and-other-key-updates","status":"publish","type":"article","link":"https:\/\/leyton.com\/ie\/insights\/articles\/budget-2026-everything-you-need-to-know-about-rd-tax-credits-changes-and-other-key-updates\/","title":{"rendered":"Budget 2026: Everything you need to know about R&D Tax Credits changes and other key updates"},"content":{"rendered":"\n\n\n\n\n
Minister for Finance Paschal Donohoe has delivered his Budget 2026 statement<\/a> to D\u00e1il \u00c9ireann. Within his speech he announced a series of measures designed to boost Ireland\u2019s \u201cresilience\u201d (a word both he and Minister Chambers used again and again), to shield the country against the economic uncertainty that has rocked much of the rest of the world in the face of global turbulence and new trade barriers.<\/p>\n\n\n\n The speech contained a welcome announcement that the R&D Tax Credits<\/a> scheme is to be enhanced with the credit rate in Ireland rising to 35%, and the first-year payments threshold going up to \u20ac87,500. Both measures will deliver real, valuable benefits to hard working businesses across Ireland and further cement the scheme as one of the most generous and attractive in the world.<\/p>\n\n\n\n While there is certainly more to be done to modernise R&D Tax Credits, as well as increase access and visibility (especially for SMEs), the government did promise that in the next few weeks further details would be announced on how they plan to improve the scheme. We look forward to learning more about these proposed improvements.<\/p>\n\n\n\n You can read the full details below, where we also summarise all the key updates affecting innovative businesses in Ireland.<\/p>\n\n\n\n Budget 2026 recognised the value of innovation, proclaiming research and development as a \u201ckey driver of economic growth and high value employment\u201d. As part of the government\u2019s strategy of remaining an attractive place for foreign and domestic investment, Minister Donohoe announced a series of measures aimed at improving the R&D Tax Credits<\/a> scheme.<\/p>\n\n\n\n For accounting periods commencing on or after 1 January 2026:<\/p>\n\n\n\n This rise in the R&D Tax Credits rate makes the scheme more valuable than ever with its generosity. The increase in the first-year payment threshold is also good news for SMEs and companies that tend to invest in smaller, lower-cost R&D projects.<\/p>\n\n\n\n Minister Donohoe also said that there would be a \u201cResearch and Development compass\u201d published sometime over the next few weeks. This \u201ccompass\u201d will consider further targeted changes in areas such as outsourcing and qualifying expenditure definitions, as well as setting out a plan for developing innovation supports in Ireland. Once this document is published, we\u2019ll be able to give you a full breakdown of how this will impact the R&D Tax Credits scheme.<\/p>\n\n\n\n The statement included an announcement on extending the Accelerated Capital Allowances<\/a> schemes for energy efficient equipment and for gas vehicles and refuelling equipment for another five years (until the 31st of December 2030).<\/p>\n\n\n\n The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers, announced \u20ac1.3 billion of investment to help boost enterprise and digitalisation.<\/p>\n\n\n\n Part of this money will help to fund Enterprise Ireland, to help businesses in Ireland scale their innovation, access global markets and create high-quality and sustainable jobs.<\/p>\n\n\n\n The money will also support a series of measures aimed at boosting market diversification, competitiveness and productivity as well as promoting both foreign and local investment across all the regions of Ireland. A new National Artificial Intelligence Office was also announced, with the goal of helping to manage the safe development of this critical new technology, which will likely play a huge rule in supporting many R&D breakthroughs in the near future.<\/p>\n\n\n\n Today\u2019s budget has increased the generosity and value of the innovation incentives on offer from Revenue, with further improvements expected in the upcoming Finance Bill. If your business is investing in research and development, there has never been a better time to consider how the R&D Tax Credits<\/a> scheme can boost your funding.<\/p>\n\n\n\n Not sure if you\u2019re eligible for the scheme, or have a question about any of the measures announced in Budget 2026? We\u2019d be happy to help. Get in touch<\/a> for an informal chat today.<\/p>\n\n\n\n If you enjoyed this article, you might also like:<\/em><\/p>\n\n\n\n Minister for Finance Paschal Donohoe has delivered his Budget 2026 statement to D\u00e1il \u00c9ireann. Within his speech he announced a series of measures designed to boost Ireland\u2019s \u201cresilience\u201d (a word both he and Minister Chambers used again and again), to shield the country against the economic uncertainty that has rocked much of the rest of the […]<\/p>\n","protected":false},"author":1,"featured_media":928,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[99],"tags":[123,179,101],"expertise":[171],"class_list":["post-927","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-rd-tax-credits-en","tag-budget-2026-en","tag-new-en","tag-rd-tax-credits-en","expertise-rd-tax-credits"],"acf":[],"yoast_head":"\nR&D Tax Credits<\/h2>\n\n\n\n
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Accelerated Capital Allowances<\/h2>\n\n\n\n
Innovation<\/h2>\n\n\n\n
Find out more about Leyton<\/h2>\n\n\n\n
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