Guaranteed Irish urges capital allowances overhaul to unlock Ireland’s investment potential
Recommendations aim to ensure Ireland remains an equally attractive location for both home-grown enterprise and global investment
Print28 July 2025
Guaranteed Irish, has announced that it has recently submitted its pre-budget proposal to the Department of Finance.
In it the business membership organisation representing over 2,300 indigenous and multinational companies in Ireland has called for a strategic overhaul of tax allowances, in order to unlock Ireland’s investment potential from both indigenous businesses and FDI companies.
Against a backdrop of rising economic uncertainty and shifting global dynamics, the organisation is urging Government to use Budget 2026 to introduce targeted tax supports for the development of advanced industrial facilities in high-value sectors such as AI,
MedTech, life sciences, and semiconductors – areas critical to maintaining Ireland’s global competitiveness.
Brid O’Connell, chief executive, Guaranteed Irish, stated: “Budget 2026 is an opportunity to reward businesses that are committed to this country – whether indigenous or international. These companies are creating jobs, investing in people and building long-term prosperity.
“Our proposals offer a roadmap to strengthen our tax system, support innovation, and attract private capital into productive sectors.
“We urge Government to act decisively and work with us as a partner in shaping a more resilient, connected economy.”
‘Bold fiscal measures’
To support this vision, Guaranteed Irish is proposing a suite of ‘bold fiscal measures’ designed to stimulate investment in the “economy of the future” which include the following:
- 100% first-year capital allowances for investments in the green and digital transition, including decarbonisation, AI adoption, and low-emission facilities.
- Increased capital allowances for plant and machinery to 25% over four years.
- Enhancements to the R&D Tax Credit to ensure Ireland remains a globally competitive hub for innovation, particularly for companies looking to Stay and Scale.
- The introduction of a tax-free Irish Savings & Investment Account (SIA), modelled on the UK’s ISA scheme, to channel more private capital into the shares of smaller and mid-cap Irish companies.
- The establishment of a Commission on the Taxation of Entrepreneurship and Family Businesses
to review structural barriers to indigenous business growth.
Budget submission
The budget submission also includes proposals to enhance Ireland’s competitiveness to include reducing the cost base for businesses, unlocking domestic investment and reforming the tax system to better support entrepreneurship, family businesses, innovation
and scalability.
To support these objectives, it noted that it is seeking targeted supports for skills development, front-loaded capital investment in critical National Development Plan (NDP) projects, such as housing, energy and water, underpinned by a ‘digital-first’
infrastructure approach.
It also calls for a more innovative State, led by a rapid expansion of digitalisation and AI adoption across Government Departments, and a fast-tracked implementation of a Life Sciences Strategy for Ireland.
Speaking at the launch of the submission, Damien McCann, chairperson, Guaranteed Irish, noted: “This Budget submission is our blueprint for empowering all Irish businesses, irrespective of scale, to thrive.
“In it we are calling on Government to build real economic resilience by incentivising investments in the bedrock of the new economy: green energy infrastructure, strategic artificial intelligence and smart manufacturing.
“Companies are ready to lead, but Budget 2026 must put the right tools in their hands.”
Read more: Guaranteed Irish marks 51 years with ‘The Guarantee of Guaranteed Irish’ campaign
© 2025, by ShelfLife reporter
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