Here’s a breakdown of the key points:

• Increase in Rate: The most significant change is the increase in the rate from 25% to 30%. This rate increase is a positive development for all claimants, regardless of their company size and makes it one of the most substantial changes to the scheme since its inception in 2004.
• Doubling of First-Year Refund: Another important enhancement is the doubling of the amount of credit that can be refunded to a company as part of its first-year payment. This amount has increased from €25,000 to €50,000. This change is designed to expedite access to funding, particularly for companies with claims of less than €100,000. This group of claimants typically represent half of claims filed in Ireland each year.
• Impact on SMEs: With the combination of the increased rate of the credit and the accelerated repayment aspect, these will provide a cash-flow benefit for smaller R&D projects and encourage more companies to engage in the regime. However, A pre-notification requirement is to be introduced, which will apply to companies intending to claim the R&D corporation tax credit for the first time, or companies which have not claimed the credit in the previous 3 years.
• When do they come into play?: These enhancements are expected to be published in finer details in relation to R&D expenditure incurred which will apply for accounting periods commencing on or after 1 January 2024.