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Global investment and innovation incentives updates: January 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.

Czech Republic

Energy savings—Installation/use of photovoltaic systems

The program is designed to encourage businesses to be more energy efficient through the installation of photovoltaic systems, including the storage of electric energy for the enterprise’s own consumption. The subsidy amounts to 80 percent of eligible project costs for small entities, 70 percent for medium-sized entities, and 60 percent for large entities, and ranges from CZK 300,000 to CZK 100 million.

Scheme budget CZK 2 billion
Type of incentive Cash grant
Deadline 30 April 2018

Technology (Industry 4.0)

This program aims to facilitate the growth and strengthening of the competitiveness of enterprises through digital transformation. The subsidy covers tangible and intangible fixed assets and expenses incurred for the acquisition of “operating sets.” The subsidy amounts to 45 percent of eligible project costs for small entities and 35 percent for medium-sized entities, and ranges from CZK one million to 20 million.

Scheme budget CZK 1 billion
Type of incentive Cash grant
Deadline 14 May 2018

Application—(Clean Sky 2)

This program is designed to support business entities and organizations that engage in research and knowledge sharing activities aimed at industrial application and the experimental development of new products, materials, technologies, and services in the civil transport aviation sector.

The subsidy covers the following: staff costs; costs of instruments, devices, equipment and intangibles; costs of contract research and advisory services used solely for the project; non-capital costs of licenses; and additional overhead and operating costs, including material and delivery costs incurred as a result of the project. The subsidy amounts to a maximum of 70 percent of eligible expenses for the entire project, depending on the type of activities and the size of the enterprise. The subsidy ranges from CZK one million to CZK 50 million.

Scheme budget CZK 400 million
Type of incentive Cash grant
Deadline 30 April 2018

Contact your Czech Republic representative

Luděk Hanáček,
partner, Tax and Legal in Central Europe
+420 606 654 304

Germany

Resource-efficient circular economy—Innovative product cycles

The funding program aims to foster R&D activities targeted at the promotion of a resource-efficient circular economy. The program targets the development of new concepts and technologies that enhance products and allow them to be used for longer periods (but not the improvement of recycling processes as a specific objective). A project should involve as many players in the value chain as possible.

Projects should adopt a holistic approach and solutions must be functional and transferable. Applicants must target at least one of the following topics relating to a resource-efficient circular economy:

  • Design concepts: New approaches to product design may improve product life span
  • Innovative business concepts: New business models that create incentives for different players to create and use products that can remain in the (circular) economy for longer periods of time
  • Digital technology: IT-based solutions that can help create improved products for the implementation of new business models that encourage longer use of products
  • Network/transfer project: Funding a project that aims to improve the impact of each funded R&D project by maintaining a network between individual projects, carrying out dissemination/marketing activities, addressing crosscutting measures for most of the projects funded under the scheme, and preparing an overall impact analysis
Scheme budget Funding is disbursed to companies, universities and other research bodies, regional administrative bodies, and social organizations incorporated or active in Germany

Eligible projects entail R&D cooperation between academia and industry with high technology risk

Project duration may not exceed three years

Funding can be up to 50 percent of eligible project costs (higher rates are possible for small and medium-sized enterprises (SMEs))
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 26 April 2018 (first application step)

Research and transfer of results for demand-oriented rehabilitation

This funding program promotes health care research that is specifically targeted at finding new solutions for economical, insurance-oriented, and high-performance rehabilitation.

Research projects are funded in two modules.

  • Module 1: Multi-centric intervention studies that are relevant for rehabilitation covered by pension insurance are preferred. These studies should result in findings on the feasibility and practical acceptance in practice, and their efficacy under the study conditions are expected.
  • Module 2: The actual implementation of successfully completed projects under module 1 where efficacy under daily conditions can be demonstrated can be funded.

Research projects should focus on three distinct issues: rehabilitation and work, reduction in earning capacity, and access and demand orientation of rehabilitation. Cooperation between science and practice is necessary, including insurance representatives.

Scheme budget Funding is disbursed to public and private universities, research institutions, and health care facilities that are incorporated or active in Germany

Additional conditions apply to research institutions that receive basic federal or state-level funding

Module 1 projects can be funded for up to four years and module 2 projects for up to two years

Funding can be up to 50 percent of eligible project costs (potentially higher for SMEs)
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 19 April 2018 (first application step)

Funding of international joint projects within the framework of “Bioeconomy International 2017” research

This funding program supports research, development, and innovation projects that make a significant contribution to at least one of the following actions set out in the National Research Strategy:

  • Securing worldwide nutrition;
  • Making agricultural production sustainable;
  • Producing healthy and safe food;
  • Using renewable resources for industrial production; and
  • Expanding energy sources based on biomass.

In addition to technological issues and development goals, socio-economic aspects, and holistic approaches also are important.

The joint projects should contribute to the federal government’s strategy for the internationalization of science and research:

  • Strengthening research collaboration with the world’s best;
  • Exploiting international innovation potential; and
  • Taking international responsibility and addressing global challenges.

The funding program consists of three modules. Module 1 supports collaboration with partners from outside the European Union, and modules 2 and 3 support specific projects collaborating with Argentinian and Brazilian partners, respectively.

Scheme budget Funding is disbursed to partners in international consortia that have a permanent establishment or branch in Germany

Up to 50 percent of eligible project costs generally are funded; differentiated mark-ups apply to SMEs that may lead to a higher aid intensity

Proposed projects must be designed to achieve the objectives within three years or two years for module 2
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 16 April 2018 (first application step)

Contact your Germany representative

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

Greece

General entrepreneurship aid scheme

The second submission round of the state aid scheme for general entrepreneurship of the Development Law 4399/2016 commenced on 15 December 2017. The scheme provides a total of EUR 250 million in tax exemptions and EUR 140 million in cash grants and subsidies for investment projects in eligible sectors that are undertaken by profit enterprises operating in Greece.

Eligible costs include capital expenditure in tangible and intangible assets (buildings, landscape, machinery and other equipment, transportation, software, ISO, consulting, start-up costs), or wage costs of the new jobs created as a result of the investment.

The minimum investment budget depends on the size of the beneficiary. The amount of aid is defined by the Regional Aid Map of Greece, and ranges from 10 percent to 55 percent, depending on the location and size of the enterprise. The total amount of aid cannot exceed EUR 5 million per investment project, EUR 10 million for each single beneficiary and EUR 20 million for a group of companies.

Scheme budget EUR 390 million
Type of incentive Tax exemptions, cash grants, and subsidies
Deadline 15 February 2018

Contact your Greece representative

Stelios Sbyrakis
principal
+30 21 0678 1196

Poland

IUSER—Sectoral R&D projects (Measure 1.2 of the smart growth operational program)

Administered by the National Centre for Research and Development (NCRD), the IUSER program (focused on intelligent devices and systems for energy management and energy generation) supports industrial research and experimental development or experimental development carried out by enterprises or consortia consisting of at least two entrepreneurs. Projects must be located outside the Mazowieckie province.

The grant is available for the following:

  • Energy storage at end-user’s systems;
  • Technologies applied to devices or systems to increasr energy efficiency; and
  • System, device, and software development for critical infrastructure network safety.
Scheme budget EUR 25 million

The amount can range from 25 percent to 90 percent of eligible costs (in the case of de minimis aid on pre-implementation work, up to EUR 200,000), depending on the type of work, the size of the company, cooperation with third parties, and dissemination of project results
Type of incentive Cash grant
Deadline 21 May 2018

InnoMOTO—Sectoral R&D projects (Measure 1.2 of the smart growth operational program)

InnoMOTO (focused on the automotive industry) supports industrial research and experimental development or experimental development carried out by enterprises or consortia consisting of at least two entrepreneurs. Projects must be located outside the Mazowieckie Province.

The grant is available for the following:

  • Innovative production, regeneration, recovery, or recycling technologies;
  • Innovative vehicles and engines; and
  • Innovative parts, components, and systems applied in vehicles.
Scheme budget EUR 70 million

The amount can range from 25 percent to 90 percent of eligible costs (in the case of de minimis aid on pre-implementation work, up to EUR 200,000), depending on the type of work, the size of the company, cooperation with third parties, and dissemination of project results
Type of incentive Cash grant
Deadline 10 July 2018

INNOship—Sectoral R&D projects (Measure 1.2 of the smart growth operational program)

The first edition of INNOship program (focused on the shipbuilding industry) supports industrial research and experimental development or experimental development carried out by enterprises or consortia consisting of at least two entrepreneurs. The grant is available for R&D activities in the shipping sector. Projects must be located outside the Mazowieckie province.

Scheme budget The amount can range from 25 percent to 90 percent of eligible costs (in the case of de minimis aid on pre-implementation work, up to EUR 200,000), depending on the type of work, the size of the company, cooperation with third parties, and dissemination of project results

EUR 28 million
Type of incentive Cash grant
Deadline 29 June 2018

New Special Economic Zones Program (corporate income tax exemption for new investment projects—regional aid financed from Member State budget)

Administered by the management of Special Economic Zones (SEZs), the program will be revised, with new rules likely to become effective some time in 2018. A tax exemption is likely to be based on eligible expenditure and the aid amounts in a particular province may range from 15 percent in parts of Mazowieckie province to 50 percent in the eastern provinces.

Under the new program, a tax exemption is expected to be available for investment projects in the entire country, rather than only in the SEZ for a period of 10 or 15 years. The investor will need to fulfil both quantitative and qualitative criteria. Quantitative criteria may include a minimum CAPEX value, ranging from PLN 10 million to PLN 100 million, based on the unemployment level in the particular county (i.e. its relationship to the average unemployment level in the country). Qualitative criteria could require the investor to obtain points regarding factors such as R&D activities, creation of specialized workplaces, and/or investing in smaller towns or with high unemployment rate.

Scheme budget Not specified; based on initial calculations, EUR 500 million rather than annual tax paid
Type of incentive Corporate income tax exemption

The amount can range from 15 percent to 50 percent of eligible costs, depending on the province where the investment project is carried out

A tax exemption generally would be available to investors from all production and service industries (sensitive sectors specified in the GBER (2014 regulation of the European Commission)) would be excluded, as would trading activities
Deadline N/A

Contact your Poland representative

Michał Turczyk
director
+4 866 683 1825

Portugal

Incentives for Technology R&D (Individual demonstration projects)

A non-refundable incentive will be granted to support individual demonstration projects (IDPs) of companies whose projects involve IDPs on advanced technologies and pilot lines; fall within the priority areas of the national and/or regional research and innovation (R&I) strategy for a smart specialization. The investment amount must be at least EUR 150,000.

Scheme budget EUR 5.25 million
Type of incentive Non-refundable incentive up to EUR 1 million per beneficiary. Where the value of the incentive exceeds EUR one million, the following apportionment applies: 75 percent of the incentive is non-refundable and 25 percent refundable, without interest

The support rate ranges from 25 percent to 80 percent of eligible project costs
Deadline 31 January 2018

Incentives for Technology R&D (Co-promotion demonstration projects)

A non-refundable incentive will be granted to support co-promotion demonstration projects promoted by companies and/or nonprofit organizations of the R&I strategy, where the projects involve advanced technologies and pilot lines, and fall within the priority areas of the national and/or regional R&I strategy for a smart specialization. The investment amount must be at least EUR 150,000.

Scheme budget EUR 6.75 million
Type of incentive In the case of companies:

A non-refundable incentive up to EUR one million per beneficiary

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

The support rate ranges from 25 percent to 80 percent of eligible project costs

For nonprofit organizations of the R&I:
Non-refundable incentive

The support rate is calculated according to the average support rate of the beneficiary companies
Deadline 31 January 2018

Contact your Portugal representative

Sérgio Paulo Oliveira,
partner
+35 1 21042 7527

United Kingdom

Anchoring low carbon technology development (APC9)

Projects must demonstrate the development of on-vehicle technologies and vehicle infrastructure interfaces for on or off-road vehicles. Technologies must be based around one or more of the following strategic technologies: electric machines and power electronics, energy storage and development, lightweight vehicles and powertrain structures, and thermal propulsion.

Projects are required to:

  • Deliver significant reductions in vehicle CO2 emissions and improvements in air quality;
  • Strengthen UK capability and develop the UK’s supply chain in the field of low-carbon vehicle propulsion or lightweight systems technology; and
  • Accelerate the development of technology solutions supporting low emission vehicles.

To be eligible for funding, a project must be collaborative and business led, the lead participant must be a grant recipient and the project must include a vehicle manufacturer or Tier 1 supplier and a SME partner in the consortium.

Non-UK based companies and research organizations are eligible to apply for funding if:

  • They set up an active UK business base before the project starts from where the funded work will be carried out; and
  • Provide evidence that they intend to expand their R&D activities in the UK beyond the life of the project.

Each project will attract no more than 50 percent of public funding. Total eligible project costs should range from GBP 5 million to GBP 40 million and the project should last between 18 and 42 months.

Scheme budget GBP 30 million
Type of incentive Grant
Deadline 7 March 2018

Contact your United Kingdom representative

Alistair Davies,
director
+44 (0) 29 20264272
or
+44 (0)7774 412675

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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