Tax-break ‘enhancement' being considered for companies carrying out research and development
Paschal Donohoe
.
Speaking to US investors at the
American Chamber of Commerce Ireland
annual dinner on Thursday, Mr Donohoe confirmed that he had been looking at ways of 'enhancing' a tax credit that returns 30 per cent of R&D spending to companies.
'We greatly value the feedback we are receiving, including as part of our recent public consultation, and this remains a key focus for my officials and I ahead of the Budget later this year,' he told the audience.
Around 1,800 companies benefit from the tax break, one of several designed to attract and retain investment.
READ MORE
The American chamber represents US companies in the Republic, which employ 211,000 workers here and support a further 168,000 jobs in other businesses.
The Minister pointed out that the relationship works both ways, as 770 Irish companies employ more than 200,000 in the US, while they have invested $350 million (€307 million) there.
He also noted that Irish aviation companies are US manufacturer Boeing's biggest customers, with orders for more than 900 of its passenger jets, worth $120 billion.
These include Ryanair, which has ordered 150 of Boeing's new 737 Max 10 aircraft, with an option for 150 more, and leasing groups Aercap, Avolon and SMBC Aviation Capital.
Mr Donohoe was speaking a day after the US Court of International Trade blocked the country's president,
Donald Trump
, from imposing sweeping
tariffs
on imports.
Last week he threatened to charge 50 per cent on all goods from the EU,
but rowed that back to July 9th
following a call with European Commission president, Ursula von der Leyen.
Mr Donohoe cautioned that tariffs were counter-productive, driving inflation and hurting consumers.
[
White House vows to fight court ruling that Trump's 'liberation day' tariff scheme is illegal
Opens in new window
]
'There are no winners in this, least of all the US taxpayers who will bear the burden of higher costs,' he said.
'Even a 10 per cent tariff could have a significant effect on Irish investment and the wider economy. It represents a huge challenge to Irish exporters to the US.'
He welcomed the contacts between Ms von der Leyen and Mr Trump.
Paul Sweetman, American chamber chief executive, said the organisation was there to support members in responding to trade turmoil.
Winners of the 2025 American Chamber of Commerce US-Ireland Business Awards
Global Leadership:
Martin Cotter, president of Analog Devices, Europe, Middle East and Africa
Global Impact:
Alltech
Global Community:
Microsoft and Maynooth University, STEM Passport for Inclusion.
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