Taxes Consolidation Act 1997 section 766D

Research and development corporation tax credit: expenditure on buildings or structures

Section 766D provides for a tax credit on qualifying expenditure incurred on the construction or refurbishment of a building or structure used for research and development purposes, and sets out the instalment payment mechanism, clawback provisions, and procedural requirements for claiming the credit.

• A qualified company may claim a tax credit on specified relevant expenditure on a qualifying R&D building — at 30 per cent for accounting periods with a specified return date before 23 September 2027, rising to 35 per cent thereafter — payable in three annual instalments over successive accounting periods.
• Where the credit exceeds the claiming company's tax liabilities, the excess may be surrendered to another company within the same group for its corresponding accounting period.
• A clawback charge equal to four times the amount of the credit arises if, within 10 years of the start of the accounting period in which the expenditure was incurred, the building is sold or ceases to be used for R&D or for the related trade.
• Companies that have not claimed an R&D tax credit in any of the three immediately preceding accounting periods must notify Revenue in writing at least 90 days before making a claim.