Technology Ireland Reaction to Budget 2026

Technology Ireland Reaction to Budget 2026

Technology Ireland, the Ibec group that represents the technology sector, welcomes the pro-enterprise direction of Budget 2026 and the Government's continued commitment to supporting innovation-led growth.

The organisation particularly welcomes the increase in the Research and Development (R&D) tax credit from 30% to 35% and the broadening of qualifying R&D activities, along with the opportunity to engage further with Government through the forthcoming R&D Compass.

Una Fitzpatrick, Director of Technology Ireland, said "Technology Ireland called for increased R&D funding as it is essential for attracting and retaining high-value industries in an innovation-led global market. We also highlighted the urgent need for greater upskilling and reskilling across the economy to enable Ireland's AI and workforce transformation.

We welcome the funding for the establishment of the National Artificial Intelligence (AI) Office however, without a dedicated allocation from the National Training Fund for strategic, large-scale upskilling in advanced digital and AI capabilities, Ireland risks falling behind. Investment in skills and innovation is not a discretionary spend - it is a national imperative. Ireland must set the pace in digital and AI skills and create the right environment for innovation."

Technology Ireland also welcomes:

• Increased funding for Local Enterprise Offices and Enterprise Ireland to help Irish companies scale, innovate, and access new markets
• The increase in the revised Entrepreneurial Relief Lifetime Limit, helping ensure competitiveness and alignment with inflation
• The extension of the Key Employee Engagement Programme (KEEP) until 2028
• Improvements and extensions to the Digital Games Tax Credit, supporting Ireland's growing creative tech ecosystem

While recognising that Budget 2026 is pro-enterprise in a challenging global trading environment, Technology Ireland stresses the need for more ambitious measures to accelerate digitalisation and AI adoption across all sectors.

Una Fitzpatrick adds 'we look forward to the publication of the revised National Digital and AI Strategy later this year, and to engaging constructively with Government to ensure Ireland fully harnesses the opportunities and addresses the challenges of the digital decade'.