Forfas has presented its report on a Services Strategy for Ireland to the Tánaiste and Minister for Enterprise, Trade and Employment. Included in the recommendations is one to expand the national research and development (“R&D”) Tax Credit scheme to include services R&D and innovation.

According to the report, this could be achieved by:

• – Redefining R&D for the purpose of tax credits so that it encompasses services R&D; and
• – Developing an R&D tax credits mechanism for services that is based on international good practice.

The Pre-Budget Submission (see earlier story) contains specific suggestions for amendments to the R&D tax credit.

The Forfas Report “Catching the Wave-A Services Strategy for Ireland” is available at http://www.forfas.ie/publications/forfas080912/forfas080912_services_strategy.pdf.