Pearse Doherty (Donegal, Sinn Fein)
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176. To ask the Minister for Finance the estimated first and full-year cost for making research and development payable credits payable in one instalment within 12 months for small and micro-companies. [32480/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is assumed that the Deputy is referring to accelerating the second and third payable credit associated with the research and development tax credit for small and micro-companies.

I am advised by Revenue that, while the suggested measure would not entail any sustained overall increase to the cost of the credit, the estimated additional cash flow cost associated with making the research and development payable credits payable in one instalment within 12 months for small and micro-companies is in the region of €42 million in the first full year.

This estimate is based on information included in tax returns for the year 2020, the latest year for  which data is available, and does not take account of any potential behavioural change.  I would also note that introducing a targeted element to the credit would have State aid implications.