Engineers are at the centre of Ireland’s transition to a low-carbon economy. Every day, teams across the country are developing cleaner energy systems, trialling new materials, and improving manufacturing processes to meet sustainability targets.

This work reflects Engineers Ireland’s Sustainability Strategy 2025–2027, which commits to empowering engineers to lead on climate action and environmental stewardship. Turning those ambitions into reality, however, requires investment.

This is where the R&D tax credit can make a difference for engineering firms. By offering a 30% tax credit on qualifying R&D expenditure, the scheme helps offset the cost of developing new or improved products, processes, or technologies. For companies tackling complex environmental or design challenges, it provides the financial capacity to invest in innovation, expand technical capability, and reinvest in sustainable solutions.

Building sustainability through innovation

From renewable energy infrastructure to low-carbon building design, sustainable engineering relies on solving complex technical problems. Whether you are developing new energy-efficient systems, testing greener materials, or improving process performance, the R&D tax credit allows companies to recover a portion of their R&D costs. This makes it easier to fund pilot projects, invest in testing, and maintain momentum on longer-term sustainability goals.

The benefit is both immediate and strategic. It helps manage cash flow, reduces the risk of technical experimentation, and strengthens a company’s ability to deliver the kind of innovation that aligns with Engineers Ireland’s Strategy of reducing environmental impact through smarter engineering.

What counts as R&D in sustainable engineering?

Revenue defines R&D as work that seeks to advance science or technology through systematic investigation and experimentation. In practice, many sustainability-driven projects already meet this standard.

Typical examples include:

• Developing or testing low-carbon materials such as alternative concretes or bio-based composites;
• Designing control systems that improve energy efficiency in manufacturing or transport;
• Creating prototypes or pilot systems to validate new renewable or recycling technologies;
• Adapting machinery to use cleaner fuels or reduce emissions;
• Integrating digital tools to monitor and optimise resource use.

If your engineers are asking questions like 'Will this process still perform efficiently with recycled materials?' or 'Can we capture waste heat and reuse it elsewhere in the system?', there is a strong chance that work already qualifies as R&D under Revenue’s guidelines.

Turning sustainability into a financial advantage

The financial benefits of R&D tax credits go beyond a single year’s return. They create space for further investment in cleaner technologies, professional development, and equipment upgrades. Many firms use the credit to fund the next phase of innovation.

At the same time, the scheme encourages companies to take financial risks. Knowing that part of the cost can be recovered allows engineers to explore new approaches with confidence and to champion solutions that may otherwise have been too costly to trial.

Getting claims right

While the credit is generous, it requires careful documentation. Engineers play a vital role in documenting what was developed, why it was technically challenging, and how the work advanced knowledge or capability in their industry. Early collaboration between technical and finance teams ensures that eligible activities are correctly identified and supported by the right evidence.

In conclusion

Ireland’s engineers are not just designing sustainable systems; they are driving the transformation needed to achieve national climate goals. The R&D tax credit gives them the financial tools to innovate, measure their impact, and lead the transition to a resilient, low-carbon future.

At ABGi Ireland, our proficient PhD consultants combine engineering and financial expertise to help companies document and evidence their R&D in line with Revenue requirements. If your projects involve developing cleaner, smarter, or more efficient technologies, it is worth exploring whether your work qualifies.

To find out more, get in touch with ABGi Ireland. Or call 086 3194747 to discuss your project in more detail.