The government's given the green light to a bill that would reduce fees paid by Independent Radio stations on an annual basis.
Ministers backed the Broadcasting Amendment Bill that allows for the levy to be reduced by up to 50%.
The money collected is used to fund the Broadcasting Authority of Ireland.
The bill will be discussed when the Dáil returns after the summer recess.
Independent Broadcasters of Ireland (IBI), which represents Ireland’s 34 independent radio stations, said the move was welcome and called for its swift passage through the Oireachtas.
IBI chairman John Purcell said: "The work done by both Communications Minister Richard Bruton and his predecessor Denis Naughten shows a recognition of the importance of independent radio in Ireland and the Broadcasting Amendment Bill puts practical steps in place to ensure the future viability of our independent radio sector."
Independent TD and former Communications Minister Denis Naughten said the measure will be a huge boost for local radio stations.
"Up to now the commercial radio stations – local radio stations and the national radio stations – had to stand on their own two feet," he said.
"What will now happen is that the registration fees for their licence that they pay on an annual basis will be reduced by up to 50%.
"That is an acknowledgement of the public service remit they provide in delivering information to communities right across the length and breadth of this country."
