Colm Burke (Cork North Central, Fine Gael)
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330. To ask the Minister for Finance if due consideration will be given in coherence with Food Vision 2030, to the review and optimisation of the tax treatment of investment by agtech companies in research and development for products and services which can support sustainability goals at farm level,; and if he will make a statement on the matter. [56899/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Food Vision 2030 is our shared strategy for the continuing development of the agri-food sector in Ireland, developed for the sector by the sector. Food Vision is a landmark for the Irish agri-food sector with the potential to transform our agriculture, food, forestry and marine sectors in the period to 2030, with sustainability at its core.

The research and development (R&D) corporation tax credit, as provided for in Part 29 of the Taxes Consolidation Act 1997, is available to all companies, including Agri-Technology companies, which are within the charge to Irish tax and which incur qualifying expenditure on qualifying R&D activities. For accounting periods commencing on or after 1 January 2024, the R&D corporation tax credit is available at a rate of 30% of allowable expenditure. For accounting periods commencing prior to 1 January 2024, the rate of the credit is 25%.

In making a claim for the R&D corporation tax credit, companies must satisfy two tests: the activity must be a qualifying activity (a science test) and the amount of the claim must be based on R&D expenditure incurred (an accounting test).

For the activities to be qualifying R&D activities, they must be systematic, investigative or experimental activities in a field of science or technology and involve one of the following research categories:

• Basic research,
• Applied research, or
• Experimental development.

The R&D corporation tax credit is available in respect of expenditure incurred wholly and exclusively in the carrying on by the company of qualifying R&D activities.

Full information regarding the R&D corporation tax credit, including the categories of activities which may qualify for the credit, is available in Revenue’s published Tax and Duty Manual on the Research and Development (R&D) Corporation Tax Credit, which can be accessed on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-29/29-02-03.pdf.