R&D Tax Credits for Manufacturing

Manufacturing: A Growing Industry in Ireland

Manufacturing is one of the key areas gaining a lot of momentum in Ireland owing to the increased government support. This support is geared towards promoting economic growth, which will increase the number of job opportunities in the country.

Eligibility Requirements for R&D Tax Credit

Incentives like the R&D tax credit are available to manufacturing companies who are undertaking eligible activities. This credit provides a 25% tax credit for R&D activities that seek to achieve a scientific or technological advance and attempt to overcome a scientific or technological uncertainty. Activities must also be systematic, investigative or experimental in nature and should encompass basic, applied or experimental research. As a further consideration, the research and development activity should also be within a field of science or technology that is approved by the Revenue Commissioners.

Eligible R&D activities for manufacturers may include:

  • Design, development and testing of prototypes;
  • Increasing one-off trials to full scale experimental trials;
  • Developing new manufacturing processes or techniques to improve efficiency e.g. increase production, performance, strength, reliability etc.;
  • Developing software and hardware to improve efficiency or reduce waste;
  • Developing a solution that attempts to resolve a product failure.

Submitting Your Claims to Revenue Commissioners

Firms have 12 months from the end of the accounting period in which expenditure was incurred to submit their R&D claim to the Revenue Commissioners. For assistance in claiming the incentive, please contact Swanson Reed R&D Tax Advisors.

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