Cut back R&D tax scheme, say officials: Two-fifths of research would have happened anyway

Tax credit that costs the state almost €600m could be curtailed to deliver better value for money in research

30th October, 2016

An official report has called for restrictions on the research and development tax credit which is costing the state €590 million per year. The study found that 40 per cent of the research and development funded by the tax credit would have been carried out even if it did not exist.

The Department of Finance report said that even though the scheme was stimulating extra R&D, the notable level of “deadweight” could not be ignored....

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