AmCham Recommendation on R&D Tax Credit Implemented in Budget 2024
In Budget 2024, announced this week, it was confirmed that the Research and Development (R&D) tax credit will increase from 25 percent to 30 percent. This was a key ask in AmCham’s 2024 Pre-Budget submission, ‘Building an Impactful Ireland – For 2050 and Beyond’. This measure will ensure that Ireland’s R&D tax credit remains adaptable to international tax changes, and will be crucial in maintaining Ireland’s competitiveness as an attractive destination for inward investment, whilst showcasing Ireland’s commitment to becoming a centre of excellence in research, development and innovation in the long-term.
AmCham will continue to advocated for additional measures to expand the scope of qualifying fields for the R&D tax credit, to include artificial intelligence, data analytics, digitalisation, emerging technologies in the field of advanced/digital manufacturing, and carbon neutrality to support the advancement of climate action.
Overall, the ambition of Government to support people and businesses was evident in Budget 2024.
Other key announcements in Budget 2024 include the earmarking of €220m for bus projects and €200m for rail projects across the country. In its Budget 2024 submission, AmCham recommended that particular priority be placed on the delivery vital transport infrastructure including the MetroLink and the Cork Commuter Rail Programme, to support national connectivity, balanced regional development, and advance Ireland’s overall sustainability strategy.
The changes to personal taxation are positive, particularly the change in the thresholds for the higher rate of income tax from €40,000 to €42,000. Addressing the personal taxation burden is important in supporting Ireland’s position as a destination-of-choice for talent. In AmCham’s latest quarterly FDI Insights survey, talent attraction ranked as the second biggest challenge, behind housing, for Ireland to overcome for their company to invest or expand here, with 14 percent of members saying it is their most significant challenge.
The commitment of Government to rollout fibreoptic broadband to 200,000 premises by the end of the year and to invest a further €348m in the scheme next year to provide broadband to a further 100,000 homes will be essential in supporting balanced regional development. In line with the ambition of the National Connectivity Strategy, AmCham called for the accelerated rollout of the National Broadband Plan to ensure this ambition in the provision of high-speed internet is delivered.
Further commitments were also made to re-exaimine the National Training Fund to help address Ireland’s skills gap, to expand the National Cyber Security Centre to strengthen cyber security and build cyber resilience in Ireland, and to prioritise key projects under the National Development Plan.
You can read AmCham’s Budget 2024 submission here.
You can watch AmCham’s full reaction to the 2024 Budget announcement here or click the video below.
If you would like to engage with AmCham on Budget 2024 please contact Colm O'Callaghan, Director of Public Affairs and Advocacy at email@example.com
AmCham Meets with Government ahead of Budget 2024
AmCham, this week, met with Minister for Finance, Michael McGrath and Minister for Public Expenditure, NDP Delivery, and Reform, Paschal Donohoe to discuss its 2024 Pre-Budget Submission, entitled, ‘Building an Impactful Ireland – For 2050 and Beyond'.