Budget 2012 is “music to the ears of Galway business, big and small” as it contains “positive and creative pro-jobs measures”.
This is the view of Fine Gael senator Fidelma Healy Eames who said she was “encouraged” by what she sees as “ the pro-jobs measures and R&D incentives” in the Budget announced on Tuesday.
The key measures include leaving income tax untouched; corporate tax exemption for start-up companies; foreign earnings deduction where an individual spends at least 60 days a year developing markets for Ireland in Brazil, Russia, India, China and South Africa; and restatement of the Government’s commitment to the 12.5 per cent corporation tax rate.
Sen Healy Eames said such measures will make it “cheaper and easier to engage in crucial R&D activities, to export to key growth markets, to run a start-up company in Ireland, and ultimately to create jobs. This will be music to the ears of progressive Galway FDI and indigenous companies, big and small”.
She also said changes to the research and development tax credit is aimed at encouraging companies, both domestic and multinational, to spend on research and development, and allow them to write off a portion of such expenditure against corporation tax.
Sen Healy Eames said she was also “delighted” that the changes will encourage SMEs to engage in R&D.
“New measures for SMEs mean that a greater portion of the total spend on R&D can be written off, by including without restriction the first €100,000 spent for the purposes of availing of the credit,” she said.
She pointed out that businesses which outsource R&D activities to universities or other organisations will be subject to fewer limits in availing of the tax credit.
“SMEs generally have less in-house R&D capabilities than larger companies, this will make it easier for them to avail of the tax credit,” she said, “and will encourage the creation of new high-value R&D jobs.”
Sen Healy Eames said the overall affect of Tuesday’s announcements will make it easier for many micro-enterprises and SMEs to access credit; and easier and cheaper for small businesses to engage in crucial research and development activities, to export to key growth markets abroad, and to run a start-up business.
“These measures will particularly suit the forward-thinking Galway business environment,” she said, “and will favourably impact on employment. I am very encouraged.”
