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Global investment and innovation incentives updates: February 2018

Global developments benefiting business

This monthly publication provides a summary and updates on the latest global developments in research and development (R&D) credits, grants, and other incentive arrangements. More than 50 countries offer specific incentives and this newsletter focuses on identifying and outlining what could be the right incentives for your organization.

Germany

Funding of research projects on role of digital data as key element of economy

Projects that have a strategic focus on the new role of digital data as an economic factor can apply for funding if they also focus on one of the following:

  1. Important and new basic technologies (e.g. AI-based systems, data technologies); or
  2. Procedures for the safe use of data in distributed systems (e.g. distributed ledger technologies/blockchain).

The objective of the projects should be to use data intelligently and exploit the potential in a safe and legally compliant manner, treating data as an autonomous asset. Projects will be assessed on their innovative potential, feasibility, and market and application potential, as well as the composition of the consortium.

Scheme budget Funding is disbursed to companies, universities, and other research bodies incorporated or active in Germany

Projects must include at least three, and a maximum of five, partners from both academia and industry

Project duration cannot exceed three years

Funding for companies can be up to 50 percent of eligible project costs (may be higher for small and medium-sized enterprises (SMEs))

Funding for universities and research institutions can be up to 100 percent of eligible project costs
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 3 April 2018 (first application step)

Funding program for computational life sciences

This funding program, embedded in the German government’s Health Research Framework Program, aims to advance the development of innovative computer-based methods and analysis tools for biology and health research.

Projects developing innovative software tools for bioinformatics and the modeling and simulation of complex biological systems are eligible in this round. This includes tools for harmonizing different data formats for output devices and sensors, or the development of robust and reproducible software pipelines for data integration, analysis, and interpretation.

Scheme budget Funding is disbursed to public and private universities and research institutions, as well as companies incorporated or active in Germany

Funding can be up to 50 percent of eligible costs for companies (may be higher for SMEs), and up to 100 percent of eligible project costs for universities and research institutions

Project duration may not exceed three years (four years may be possible in certain cases if the applicant can demonstrate a separate justification at the time the project outline is submitted)
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 12 April 2018 (first application step)

Promotion of transnational collaborative projects for sustainable crop production under ERA-NET initiative, Cofund SusCrop

This funding program promotes transnational collaborative projects that increase the sustainability and resilience of European crop plants and agricultural production in the context of climate change and the increasing scarcity of natural resources.

Project proposals are expected to address one of the following areas:

  • Improvement of existing plant breeding technologies and development of new genotypes leading to new, improved phenotypes and/or plant crop varieties;
  • Development and exploitation of novel, integrated methods, and processes of pest and plant crop management;
  • Improvement of the resource-efficient use of crops or their cultivation systems; and
  • Research on interactions of agricultural crops with other organisms.
Scheme budget Funding is disbursed to companies, universities and research institutions, state and federal institutions with R&D capacities

Consortia must consist of research groups of at least three partners from participating countries1

Funding can be up to 50 percent of eligible costs for companies (may be higher for SMEs), and up to 100 percent for universities and research institutions

Project duration should not exceed three years
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 4 April 2018 (first application step)

1 https://www.submission.suscrop.eu/lw_resource/datapool/_items/item_98/SusCrop-Guidelines%20for%20applicants_final_20180117.pdf

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Contact your Germany representative

Isabel Antholz
service line leader
+49 (0) 40 32080 4910

Italy

Extension of super depreciation and hyper depreciation schemes

Italy’s 2018 budget law extends the 150 percent hyper depreciation tax scheme related to the Italian government's plan Industry 4.0 to include qualifying tangible assets acquired by 31 December 2018 (or under certain conditions, by 31 December 2019). The 40 percent super amortization for purchased “Industry 4.0 software” has been extended and made applicable to other intangible assets, such as e-commerce supply chain systems and platforms related to 3D reconstructions.

The super depreciation scheme has been extended to cover investment made during the period 1 January 2018 and 31 December 2018 (or 30 June 2019 in certain cases), but decreases the additional applicable depreciation rate from 40 percent to 30 percent.

Scheme budget N/A
Type of incentive Super/hyper depreciation
Deadline Hyper depreciation: 31 December 2018/31 December 2019 (provided the seller accepts orders by 31 December 2018 and at least 20 percent of the price is paid by the same date)

Super depreciation: 31 December 2018/30 June 2019 (provided the seller accepts purchase orders seller by 31 December 2018 and at least 20 percent of the price is paid by the same date)

Tax credit for training costs relating to Industry 4.0 development plan

Italy’s 2018 Budget Law provides a 40 percent tax credit on personnel expenses incurred for training activities related to the Industry 4.0 development plan (i.e. big data, cybersecurity, robotics, internet of things, data analysis). The tax credit is recognized up to a maximum annual amount of EUR 300,000 per company.

Scheme budget N/A
Type of incentive Tax credit for training expenses
Deadline 31 October 2019

Advertising tax credit

A tax credit is available to firms investing in advertising (i.e. the purchasing of advertising space and commercial advertisements in newspapers or as part of the programming of television and radio stations) during the calendar year 2018. The incentive also applies to print advertisements taken out during the second half of 2017.

Scheme budget Budget: EUR 62.5 million
Benefit: Incremental tax credit scheme providing a 75 percent credit (90 percent for SMEs) computed on the amount of advertising expenditure exceeding the same type of expenditure incurred during the previous fiscal year
Type of incentive Advertising tax credit
Deadline 31 October 2019

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Contact your Italy representative

Ranieri Villa,
Tax partner
+34 8 875 7224

Portugal

Incentives for technology research and development (Co-promotion projects)

A non-refundable incentive to support co-promotion projects promoted by companies and non-profit organizations of the research and innovation (R&I) system, where the projects fall within the priority areas of the national and/or regional R&I strategy for a smart specialisation.

The leader of the consortium must ensure at least 30 percent of the eligible investment, with the minimum investment amount being EUR 150,000.

Scheme budget EUR 47.5 million
Type of incentive In the case of companies:

Non-refundable incentive up to EUR 1 million per beneficiary

Where the incentive exceeds EUR 1 million, the following apportionment applies: 75 percent of the incentive is non-refundable and 25 percent is refundable, without interest

The support rate ranges from 25 percent to 80 percent of eligible expenditure

For non-for-profit organizations of the R&I:

Non-refundable incentive

The support rate is calculated according to the average support rate of the beneficiary companies
Deadline 28 March 2018

Incentives for technology research and development (Individual projects)

A non-refundable incentive is available to support individual projects of companies whose projects fall within the priority areas of the national and/or regional R&I strategy for a smart specialisation. The investment amount must be at least EUR 100,000.

Scheme budget EUR 58 million
Type of incentive Non-refundable incentive up to EUR 1 million per beneficiary

Where the value of the incentive exceeds EUR 1 million, the following apportionment applies: 75 percent of the incentive is non-refundable and 25 percent is refundable, without interest. The support rate ranges from 25 percent to 80 percent of eligible project costs
Deadline 28 February 2018

Incentives for qualification and internationalization of SMEs: Projects for qualification (call for projects in Lisbon region)

SMEs undertaking projects located in the Lisbon region to increase their productivity, flexibility, and response capacity in the global market can claim a cash grant for expenses incurred on information and communication technologies, the digital economy, brands and designs, the development of new products and services, quality, knowledge transfers, eco-innovation, distribution, and logistics.

Scheme budget EUR 10 million
Type of incentive Non-repayable cash grant of 40 percent of eligible costs
Deadline 12 March 2018

Incentives for qualification and internationalisation of SMEs: Projects for internationalisation (call for projects in Lisbon region)

SMEs undertaking projects located in the Lisbon region to increase their capacity and presence in the global market can claim a cash grant for expenses related to the knowledge of markets, international development and promotion, presence in international markets and international marketing, amongst others.

Scheme budget EUR 20 million
Type of incentive Non-repayable cash grant of 40 percent to SMEs
Deadline 12 March 2018

Business innovation and entrepreneurship (calls for projects in Lisbon and Alentejo regions)

Incentives are available to support projects located in the Lisbon and Alentejo regions that are promoted by SMEs and non-SMEs in all economic activities, particularly those that aim at the production of tradable and exportable goods and services, and that fulfill the following objectives:

  • Strengthen non-SME and SME investments in innovative activities;
  • Contribute to the internationalization of the Portuguese economy, creation of qualified employment, as well as the spillover effect on SMEs; and
  • Promote qualified and creative entrepreneurship.
Scheme budget EUR 30 million (for business innovation projects located in the Lisbon and Alentejo regions)

EUR 10 million (for entrepreneurship projects located in the Lisbon and Alentejo regions)
Type of incentive Interest-free refundable incentive

If the project exceeds its objectives, up to 60 percent of the incentive may be non-refundable. The gross grant equivalent cannot exceed the maximum rates based on the regional state aid maps for the period 2014-2020

The base support rate is 30 percent
Deadline 5 March 2018 (calls for projects in Lisbon region)
16 March 2018 (calls for projects in Alentejo region)

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Contact your Portugal representative

Sérgio Paulo Oliveira,
partner
+35 1 21042 7527

For more information

For more information on any of the programs listed above, please contact the in-country representative or your usual contact.

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Global investment and innovation incentives updates: Global developments affecting research and development

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