How Ireland’s R&D Tax Credit works, what it actually covers on an AI project, and why it funds research and development — not the purchase of finished software.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

The R&D Tax Credit is a corporation-tax credit on qualifying research and development — that is, a credit for performing R&D, not a grant and not a reward for buying software.

What the scheme actually gives

  • 35% credit on qualifying R&D expenditure, for accounting periods beginning on or after 1 January 2026 (raised from 30% in Budget 2026).
  • Fully refundable — payable in cash instalments even with no corporation-tax liability, with the first-year payment threshold raised to €87,500.
  • Administered by Revenue; developing new AI can qualify, but using software the business already owns does not.

Does it fund buying AI software?

The R&D Tax Credit rewards performing genuine R&D, not buying someone else’s AI product; it helps a company that is already developing and paying tax. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax schemes, grants, rules and rates change, and only the relevant authorities (among them Revenue, IDA Ireland, Enterprise Ireland, the Data Protection Commission and the Central Bank of Ireland) decide eligibility and awards. dgm is not a grant deliverer, approved knowledge provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in Ireland adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.