Arnon, Tadmor-Levy examines Knesset-approved bill to advance R&D incentives
Israel has taken a significant step to strengthen its position as a technology and innovation hub, with the Knesset Finance Committee approving a bill designed to encourage research and development as part of the 2026 State Budget and Economic Plan.
The proposed framework includes tiered tax credits linked directly to qualifying R&D expenditure, with higher credit rates as spending rises, alongside the option to convert unused credits into cash grants after three years. The bill applies to qualifying Israeli-resident companies within eligible groups that meet income and employment thresholds.
In an article published by Arnon, Tadmor-Levy, partners Ofir Levy and Boaz Feinberg and intern Hadar Shdema Zitrom outline the bill’s key details and implications.
Read the firm’s analysis here.
