Maximising Innovation in Ireland: Combine R&D Tax Credits with Enterprise Ireland Grant Funding

Ireland continues to lead the way in driving innovation, offering businesses a number of powerful financial supports. But there is a common misconception when it comes to the two most lucrative incentives:

• R&D Tax Credits

• Enterprise Ireland (EI) Grant Funding

The misconception is that these two incentives cannot but used in tandem. But here’s the key: you can use both strategically to dramatically reduce your innovation costs—by up to 65% in some cases.

1. What Is the R&D Tax Credit?

Irish companies can claim a 30% tax credit on qualifying R&D expenditures. Combined with the standard tax deduction, this means you can recover up to 43% of your eligible R&D spend.

To qualify, your activities must:

• Involve science or technology

• Seek to resolve scientific or technological uncertainty

• Be systematic, investigative, and experimental

  
  

2. Enterprise Ireland Grant Supports

Enterprise Ireland offers a wide range of R&D and innovation grants to support businesses at various stages:

• Innovation Vouchers

• Agile Innovation Fund

• Feasibility Studies

• RD&I Fund

• Commercialisation Grants

These grants often provide upfront or phased funding, giving businesses a critical cash flow boost early in a project.

3. Can You Use Both? Yes—With a Strategic Approach

It is absolutely possible to use both EI funding and the R&D Tax Credit—as long as you follow the legislation.

You cannot claim the tax credit on costs already funded by a grant in the period, but you can claim it on the remaining portion your company pays.

Example:

• Total R&D spend: €200,000

• EI grant funding: €100,000

• Eligible for R&D tax credit: €100,000

• Tax credit received: €30,000

That’s a significant total saving of €130,000 covering 65% of the R&D project costs.

4. Real-World Example: EZ Management Ltd

5. Key Takeaways

• Use grants for early-stage funding, and tax credits for retrospective relief.

• Keep thorough documentation to support both claims.

• Work with experts to ensure accurate apportionment across your development projects and full compliance.

  
  

Final Thoughts

If your business is investing in innovation, don’t leave money on the table.

Combining Enterprise Ireland grants and the R&D Tax Credit could be the smartest financial move you make this year.

Need help with your claim? R&D Tax Solutions (RDTS) specialises in maximising R&D tax credits and aligning them seamlessly with EI grant support.

Let’s explore how your business can innovate more—while spending less.