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Global investment and innovation incentives updates: June 2019

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

Environment for Life program

The Czech Republic Technology Agency plans to announce a public tender in the Environment for Life program, focusing on the support of applied research and experimental development and innovation relating to the environment. Eligible applicants include enterprises, research organizations, and other legal entities. The maximum support for a single project in this public tender is up to 100 percent of total eligible costs (up to CZK 30 million), based on the type of research activity and type of applicant.

Scheme budget CZK 429 million
Type of incentive Cash grant
Deadline 19 September 2019


DELTA 2 program

The Czech Republic Technology Agency plans to announce a public tender in the DELTA 2 program to support international cooperation projects between enterprises and research organizations to increase the amount of concrete results of applied research that are expected to be later implemented in practice. Applicants can include enterprises and research organizations. The maximum amount of support for a single project is up to 74 percent of total eligible costs, based on the type of research activity and type of applicant.

Scheme budget CZK 450 million
Type of incentive Cash grant
Deadline 22 August 2019


TREND program

The Czech Republic Technology Agency has announced the first public tender in the TREND program to support projects focusing on implementing the results of industrial research and experimental development in practice and to support the penetration of new markets. Applicants can include enterprises and research organizations. The maximum amount of support for a single project within this public tender is up to 70 percent of total eligible costs (up to CZK 70 million/approximately EUR 2.8 million), based on the type of research activity and type of applicant.

Scheme budget CZK 2 billion (ca EUR 80 million)
Type of incentive Cash grant
Deadline 11 July 2019

Contact your Czech Republic representative

Luděk Hanáček
partner
+420 606 654 304

Germany

E-Mobility

Germany’s Federal Ministry of Transport and Digital Infrastructure promotes e-mobility with the aim of making the transport sector more energy-efficient, and climate and environmentally friendly.

This funding call focuses on the promotion of applied R&D aimed at reducing costs of technologies, components, or systems required for e mobility. In addition to answering research questions arising from the operation of vehicle fleets and their infrastructure, this call focuses on technological R&D in applications with low vehicle availability (e.g. trucks, ships, trains).

Support will be in the form of a non-refundable grant, with the funding ratio depending on the type of enterprise/institution. 

Eligible participants Commercial enterprises (with a permanent establishment in Germany), Universities, non-university research institutions, municipal authorities, and non‑profit organizations
Scheme budget Funding ratio based on eligible costs:

• Commercial enterprises: Up to 25 percent for experimental development and up to 50 percent for industrial research

• Municipal authorities and non-profit organizations: Up to 80 percent of eligible costs

• Research institutions: Up to 90 percent

• Universities: Up to 100 percent
Type of incentive Non-refundable grant
Deadline 15 August 2019 


Promotion of junior scientists in infection research

To strengthen the scientific basis in infection research, Germany’s Federal Ministry of Education and Research promotes the career path of qualified young scientists in clinical and application-oriented infection research, especially on antimicrobial resistance. Funding is provided for PhD physicians who wish to carry out their own infectious disease research projects in addition to clinical work, and for scientists with a PhD in infectiology who have completed at least a two-year postdoctoral phase and who wish to establish a junior research group in a corresponding research sector.

Support will be in the form of a non-refundable grant, with the funding ratio depending on the type of institution.

Eligible participants Public and private universities, university clinics responsible for research and education, as well as non-university research institutions located in Germany
Scheme budget Funding ratio based on eligible costs:

• Research institutions and universities: Up to 100 percent

• An additional project allowance of 20 percent is granted for non-commercial research projects at universities and university clinics

• University clinics: Up to one group leader position for a junior scientist, one postdoctoral position, two non-medical doctoral students, and (e.g.) one technical assistance position
Type of incentive Non-refundable grant
Deadline 12 September 2019

Contact your German representative

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

Hungary

R&D cash grant

A non-refundable cash grant is available for R&D and innovation projects implemented by small and medium-sized enterprises and large enterprises in Hungary (any region) independently or in a consortium. During the project, a marketable product, technology, or service must be developed that generates sales revenue of at least 30 percent of the grant amount within three years after the end of the project. Eligible costs include personnel costs, material costs, purchase of tangible and intangible assets, and costs of services.

Scheme budget HUF 45 billion
Maximum aid intensity: 15 percent to 70 percent for large enterprises. The maximum grant amount ranges from HUF 100 million to HUF 1 billion

• Program “A” (independently/consortium): HUF 100–HUF 500 million; and
• Program “B” (consortium): HUF 400 million to HUF 1 billion
Type of incentive Cash grant
Deadline 5 August 2019, 2 p.m. CET

Contact your Hungary representative

Csaba Márkus,
partner
+36 1 428 6800

Poland

INNOSTAL - Sectoral R&D projects (Measure 1.2 of Smart Growth Operational Program)

Administered by the National Centre for Research and Development (NCRD), the next phase of the INNOSTAL program (dedicated to innovative solutions for the steel industry) in Poland supports industrial research and experimental development or experimental development carried out by enterprises or consortia consisting of at least two entrepreneurs or at least one entrepreneur and one scientific unit.

The grant is available for the following areas:

  • New and improved steel products and production technologies;
  • New and improved batch materials and alloys for metallurgical production;
  • Recycling of raw materials from metallurgical waste and scrap;
  • Optimization of energy consumption, batch materials, media and metallurgical tools/equipment;
  • Innovative systems and technologies reducing emissions to the environment; and
  • Innovative solutions for modernizing and supporting metallurgical technological processes.

Projects must be located outside the province of Mazowieckie.

Scheme budget EUR 46.4 million
Type of incentive Cash grant: Grant may range from 25 percent to 90 percent in the case of de minimis aid for pre-implementation activities (up to EUR 200,000) of eligible costs, depending on the type of activities, company size, cooperation with third parties, and dissemination of project results
Deadline 19 August 2019


INNOship - Sectoral R&D projects (Measure 1.2 of Smart Growth Operational Program)

Administered by the National Centre for Research and Development (NCRD), the next phase of the INNOship program (dedicated to innovative solutions for the shipbuilding sector) supports industrial research and experimental development or experimental development carried out by enterprises or consortia consisting of at least two entrepreneurs or at least one entrepreneur and one scientific unit. The grant is available for the following areas:

  • Modern methods and tools supporting the design and operation of vessels;
  • Development and implementation of modern forms of energy supply that is environmentally-friendly and meets current and future environmental standards, with linked infrastructure;
  • Prototype structures and floating objects and other technical objects with equipment implementing the latest design solutions, intended for various applications and types of navigation and for the economic use of sea resources;
  • Development of prototypes, innovative structures for wharfs and technologies for facilities supporting shipbuilding activities, including solutions implementing pro-ecological regulations of the IMO, EU, and Polish administrations; and
  • Development and verification in a demonstration-scale of modern, horizontal production techniques in shipbuilding activities.

Projects must be located outside the province of Mazowieckie.

Scheme budget EUR 48.8 million
Type of incentive Cash grant: Grant may range from 25 percent to 90 percent in the case of de minimis aid on pre-implementation activities (up to EUR 200,000) of eligible costs, depending on the type of activities, company size, cooperation with third parties, and dissemination of project results
Deadline 16 September 2019


Energy plus

The aim of the new program administered by the National Fund for Environmental Protection and Water Management is to reduce the negative impact of enterprises on the environment (including the improvement of air quality) by supporting investment projects.

Support in the form of a cash grant or loan is available in the following areas:

  • Reducing consumption of primary raw materials,
  • Limiting or avoiding emissions into the atmosphere,
  • New sources of heat and energy, and
  • Modernization/extension of heating systems.
Scheme budget EUR 1 billion
Type of incentive Cash grant: Up to 50 percent in the case of projects using Organic Rankine Cycle technology for the production of electricity

Loans: For other types of projects, a preferential loan (state aid) or a loan on market terms is offered. In each case, the co-financing is up to 85 percent of eligible costs (from EUR 244,000 to EUR 73 million)
Deadline 20 December 2019 

Contact your Polish representative

Dominika Alicka,
senior manager
+48 8 8195 0969

Thailand

Additional incentive to promoted companies listed on Thai stock exchange

The Thailand Board of Investment provides additional incentive to promoted companies that are listed on the stock exchange in Thailand (SET/MAI) after they are granted promoted company status.

This scheme does not apply to promoted companies that were listed on the SET before 19 November 2018 and the MAI before 23 November 2017.

Scheme budget No additional investment is required 
Type of incentive Additional corporate income tax exemption amounting of the actual investment made in the promoted project, excluding the cost of land and working capital
Deadline Application submitted by 30 December 2020

Contact your Thailand representative

Anthony Visate Loh
country partner,
+66 (0) 2034 0112

Sutthika Ruchupan,
legal senior manager,

+66 (0) 2034 0000
Ext. 11473

United Kingdom

Collaborative R&D projects to support long-term development and supply chain for zero-emission vehicles

The UK government has announced a new call for collaborative R&D projects to support long-term development and the supply change for zero-emission vehicles.

Eligible projects must either accelerate the development of low- and zero-emission vehicles or demonstrate a significant reduction in CO2 emissions. This can involve improving production and competitiveness in design, build, and manufacturing across technologies, such as:

  • Alternative propulsion systems,
  • Electric machines and power electronics,
  • Energy storage and management,
  • Lightweight vehicles and powertrain structures, and
  • Thermal propulsion systems.

Projects that will make a positive impact on the UK supply chain will be prioritized. This can include:

  • Creating new supply chains in zero-emission vehicles and electrification,
  • Delivering a UK-centric high-value manufacturing and sourcing footprint lowering the overall cost of goods sold to customers,
  • Attracting new companies not traditionally serving the automotive sector, and
  • Competitive information.

Organizations must be based in the United Kingdom and work with at least one micro, small, or medium-sized business. The total eligible costs must be 50 percent match-funded and be between GBP 5 million and GBP 40 million.

Scheme budget GBP 25 million
Type of incentive Cash grant
Deadline 10 July 2019, 12 p.m. GMT

Contact your United Kingdom representative

Alistair Davies
director,
+44 (0)29 2026 4272

United States

Alabama Incentive Modernization Act

On 6 June 2019, the Alabama governor signed House Bill 540, enacting a law establishing the Alabama Incentive Modernization Act, which amends the Alabama Jobs Act and the Growing Alabama Credits. The law includes the following key measures:

  • Providing a capital gains tax reduction for investments in opportunity zone funds, which brings Alabama more in line with the federal Opportunity Zone Program,
  • Expanding the number of rural counties covered by existing jobs and investment credits, and 
  • Targeting technology companies by eliminating the capital gains tax for investors in and employees of technology companies with at least 100 employees that relocate to the state and agree to stay for a certain period of time. The law takes effect on 5 August 2019.
Scheme budget n/a
Type of incentive Multiple incentives included
Deadline n/a


South Carolina tax credits for purchase, installation of geothermal machinery, equipment extended

A new South Carolina law that became effective on 16 May 2019 extends the individual income and corporate income tax credits for the purchase and installation of geothermal machinery and equipment from 1 January 2019 to 1 January 2022. The credit is 25 percent of the costs incurred by the taxpayer for the purchase and installation of geothermal machinery in or on a facility in South Carolina and owned by the taxpayer. The tax credit cannot be claimed before an installation is completed. The amount of the credit in any year may not exceed USD 3,500 for each facility or 50 percent of the taxpayer’s tax liability for that taxable year, whichever is less. Any excess credit may be carried forward for up to 10 years. The law applies to tax years beginning after 2018.

Scheme budget Tax credit may not exceed USD 3,500 or 50 percent of taxpayer’s tax liability for the relevant year
Type of incentive Individual and corporate income tax credits
Deadline n/a


South Carolina port cargo volume increase tax credit raised

A law that became effective on 13 May 2019 raises the maximum amount of available tax credits for a port cargo volume increase for corporate income and individual income tax purposes. The law (i) increases the maximum amount of the available tax credits for each calendar year from USD 8 million to USD 15 million; (ii) provides a “port transportation credit” for the costs of transporting freight, goods, and materials to and from port facilities in South Carolina; and (iii) clarifies that a “port facility” is a “distribution facility” for purposes of certain sales and use tax exemptions.

Scheme budget Tax credit from USD 8 million to USD 15 million
Type of incentive Income or withholding tax incentive
Deadline n/a

Contact your United States representative

Douglas Tyler,
managing director,
+212 436 3703

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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