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The Minister for Research and Innovation, Sean Sherlock TD today [Tuesday] welcomed the suite of improvements to Ireland's R&D tax credit as announced by the Minister for Finance in today's Budget speech.

The improvements to Ireland's R&D tax credit announced today include the following:

· The first €100,000 of R&D expenditure of all companies will be allowed on a volume basis for the purpose of the R&D Tax Credit;

· The outsourcing arrangements for R&D purposes will be improved in a targeted manner to allow the greater of the existing percentage arrangement or €100,000;

· Companies will have the option to use some portion of the R&D credit to reward key employees who have been involved in the development of R&D.

Minister Sherlock said: "These improvements will encourage both SME's and Multinationals to engage in additional Research and Development activity, thereby creating new high-value jobs in the field of Research and Development.

"The changes to the outsourcing arrangements which will allow businesses to outsource research and developments activities to universities or organisations will be of particular benefit to SME's that generally have less in-house R&D capability. The changes deliver on the Program for Government commitment to "amend the R&D tax credit regime to make it more attractive and accessible to smaller businesses".

"Encouraging businesses to undertake Research and Development will enable such businesses to develop new products and services which can be exported to overseas markets creating new jobs in the manufacturing and services sectors.

"The future for business lies in staying competitive and maintaining an innovative edge over our competitors. The initiatives on R&D tax credits announced in the Budget will send a clear signal to business that this Government is supporting their efforts to develop new products and processes, which will assist them to win new markets in the present challenging environment", Minister Sherlock added.