Earlier this week, Tánaiste and Minister for Finance Simon Harris published the Research and Development Tax Credit and Innovation Compass, outlining the Government’s medium‑term direction for Ireland’s R&D tax regime and broader innovation supports.

The Compass responds to issues raised during last year’s national R&D consultation and provides clarity for stakeholders and R&D active companies on how policy may evolve. It identifies four key areas for potential development and enhancement of the regime:

• Qualifying Expenditure
• Capital Expenditure
• Administration and Simplification
• Supports for Innovation

Work is already underway on reviewing subcontracting rules and exploring additional measures to support innovation. Minister Harris said the Compass builds on the 2025 R&D Review and offers stakeholders a clear pathway for how the R&D tax credit and innovation supports may develop over the lifetime of the current Government. He noted that specific policy decisions within each area will follow further analysis.

The R&D Tax Credit and Innovation Compass can be accessed here.