The Government may loosen rules around the research and development (R&D) tax credit for subcontractors, Minister for Finance Simon Harris has suggested to top leaders of US businesses in Ireland.
Harris increased the overall R&D tax credit to 35 per cent at the most recent budget. But, for subcontractors the credit is capped at 15 per cent or €100,000, whichever is greatest.
Speaking at the American Chamber of Commerce Ireland’s annual US-Ireland business awards in Dublin, Harris hinted that may change.
“Guided by the recently published R&D Compass, I will continue to examine the R&D tax credit with a particular focus on the subcontracting provisions during the term of this Government,” he said. “If we want innovation to happen, we must create the conditions in which innovation can thrive.”
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American Chamber of Commerce chief executive Paul Sweetman said there was a need to continue investment in R&D to maintain transatlantic investment and competitive edge.
“As innovation evolves, so too must our R&D framework to ensure Ireland remains in that leadership position,” Sweetman said.
“We have an opportunity now to build on our existing progress and ensure our supports better reflect the collaborative and internationally connected nature of modern research and development.”
Sweetman’s comments come in the wake of research published by the Industrial Research and Development Group and KPMG this week, showing 69 per cent of businesses reported an increase in R&D spending over the past three years.
The research also found that more specific tax credits targeted at artificial intelligence (AI) development and innovation were sought after by Irish businesses.
Against the backdrop of global uncertainty, Sweetman said: “Ireland’s future competitiveness depends on ensuring that Europe remains open for business, committed to innovation and confident in the value of open trade and investment.”
Irish medical technology firm Aerogen came away with the award for global impact following its “Aerogen Solo” project, which enables enhanced aerosol drug delivery across multiple respiratory systems. The project was designed and managed in Ireland and has already been adopted widely across hospitals in the US.
The global leadership award went to Graham Abell, vice-president of software engineering and Ireland site lead at Workday.
He was commended for his work in positioning Workday’s European and Middle Eastern Area’s headquarters as a global innovator in AI, which was noted as significant to spotlighting Ireland as a technological hub as well as being significant to the business itself.
The winner of the global community award was the Institute of Study Abroad Ireland (ISAI) for its 20 years spent developing educational links between the US and Ireland within the two-year college sector.
It was noted for its provision of study abroad opportunities to students in technical colleges who rarely benefit from such programmes.
