Bodies endorse R&D tax credits and investments in data protection and AI Act compliance
Trade
Caroline Gaynor, Irish Venture Capital Association
Industry groups Irish Venture Capital and Private Equity Association (IVCA) and Digital Business Ireland have issued statements reacting positively to today’s Budget.
IVCA welcomed the increase and expansion of the research and development tax credit to 35% from 30%. It also welcomed the increase in funding for Enterprise Ireland to help scaling companies, and the commitment to the development of an R&D Compass as well as the revisions to stamp duty for listed companies.
“By making it easier and more attractive for businesses of all sizes to invest in R&D, the government is ensuring that Ireland remains at the forefront of global innovation and continues to attract world-class talent and ideas,” said Caroline Gaynor, chairperson, IVCA. “This focus on investment signals the government’s continued commitment to fostering entrepreneurship, encouraging investment and backing scaling Irish companies. It represents a powerful vote of confidence in the resilience and ambition of the Irish business community.”
Sarah-Jane Larkin, director general, IVCA said that the budget was pro-business, pro-investment, and pro-innovation.
“The changes to the R&D tax credit in particular are forward-looking, encouraging more companies to take bold steps in research and development, while the measures to encourage private investment will help ensure that our economy continues to thrive in a rapidly evolving global marketplace,” said Larkin.
She added that the IVCA looked forward to working with stakeholders, industry, and government to maximise the opportunities arising from Budget 2026 and to ensure that these measures translate into long-lasting benefits for Ireland’s economy, workforce, and society.
Digital Business Ireland
The Budget was also welcomed by Digital Business Ireland, a body representing 8,500 businesses. Spokesperson dp Fitzgerald drew attention to new measures for compliance with the EU AI Act and additional supports for the Data Protection Commission.
“DBI strongly support the commitment to provide €1.4 million in funding to establish the National AI Office as the central co-ordinating authority for the EU AI Act, and the promise from the Government to promote and leverage the use of AI in Irish companies, which is an area DBI has been campaigning for since the beginning of the year,” he said.
“With the importance of digital compliance higher than ever before, DBI is very positive about the additional €3 million in expenditure allocation to the Data Protection Commission, which will be crucial allowance to help the DPC safeguard, guide and support businesses in regulatory compliance. DBI will be engaging with the DPC and Department of Justice to seek the allocation of some of this additional spending to enhancements of the DPC website and guidance for businesses.”
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