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Israel's R&D Law Aims to Curb Tech Brain Drain

3/16/2026

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Story summary
  • The Knesset Finance Committee approved the 'Research and Development Law' to provide tax credits for R&D expenses, aiming to retain multinational tech firms in Israel amid war and political uncertainty.
  • The legislation creates a direct tax credit for R&D expenses and benefits Israel's socio-economic periphery.
  • It also addresses a global minimum tax on large companies.
  • STEM graduates are leaving Israel at double peers’ rates, raising brain drain concerns in tech.