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Global investment and innovation incentives updates: March 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

EPSILON programme

The programme announced by the Technology Agency of the Czech Republic supports projects that reasonably anticipate achieving at least one of the results in line with the stated objective of the project, such as industrial designs, utility models, prototypes, functional samples, medical procedures, patents, software, pilot plants, etc. Eligible costs include staff costs, investments, costs of sub-supplies, and other direct or indirect costs (overhead) incurred in connection with completing the project. Participants in the public tender may include companies, research institutions, and individuals engaged in business. The maximum aid intensity per project in the public tender amounts to 60 percent of total eligible costs.

Scheme budget CZK 500 million
Type of incentive Cash grant
Deadline 12 April 2018

Contact your Czech Republic representative

Luděk Hanáček,
partner
+420 606 654 304

Germany

Call for applications for “Bioeconomy as a societal change”

The funding program on bioeconomy and the current call promotes research projects addressing socio-economic issues that improve the understanding of the complex relationships between bioeconomic transformation processes and establish a link to the practical implementation of the bioeconomy.

Possible research topics include adaptation of production strategies to the different geographical and climatic conditions of regions, biological cycles and the efficient production and value chains and sustainability effects of recycling, and cascade utilization. A research project must include social, political, and economic approaches, showing a holistic/integrated approach to bioeconomy.

Scheme budget Funding is disbursed to companies, universities, and other research bodies

Both joint and individual projects are eligible

Funding generally is disbursed for up to three years

Funding for companies can be up to 50 percent of eligible project costs, up to 100 percent for universities and research institutions
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 13 June 2018 (first application step)

Funding program, “Innovation and technology partnerships for human-technology interaction: Intelligent, networked objects for everyday life"

The purpose of the call is to promote innovative R&D projects in the area of machine-human-interaction that transfer Internet of Things (IoT) techniques to everyday objects and, thus, facilitate an intelligent network of these objects.

The aim is to analyze data from different sources and to interpret it using artificial intelligence techniques to identify user intentions and needs depending on the situation and to operate them by means of assistance functions. The solutions to be developed should result in interactive systems that offer significantly improved everyday support and a more intuitive use of assistive technologies, especially compared to existing approaches and users.

Scheme budget Funding is disbursed for joint projects of companies, universities, and research institutions

Funding can be up to 50 percent of eligible costs for companies and up to 100 percent for universities and research institutions
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 29 June 2018 (first application step)

Promotion of procurement of electric buses for public transport

The Federal Ministry for the Environment, Nature Conservation, Building, and Nuclear Safety supports procurement of the following:

  • Diesel-electric hybrid buses with external charging (plug-in hybrid buses),
  • Battery-electric buses (battery buses) that can be used without additional power generation if more than five are ordered, and
  • Charging infrastructure in connection with the purchase of buses for public transport.
Scheme budget Funding is disbursed to public transport companies; an association of a number of public transport companies is possible to implement a joint project

Funding can be up to 80 percent of additional capital expenditure for battery electric buses and up to 40 percent for plug-in hybrid buses and charging infrastructure

The ministry has announced a first budget of EUR 35 million, but this may be increased
Type of incentive Non-repayable investment grant
Deadline Submission of a project outline: 30 April 2018 (first application step)

Contact your Germany representative

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

Poland

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

The first edition of the 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.

The grant is available for the following areas:

  • Innovative methods and tools supporting design and operation of vessels,
  • Development and implementation of innovative, environmentally-friendly forms of energy supply for vessels,
  • Prototype constructions, floating, and other technical objects,
  • Development of prototypes, innovative structures of wharves, and technologies for these facilities that support shipbuilding activities, and
  • Development and verification of prototypes for innovative manufacturing techniques in shipbuilding.
Scheme budget EUR 28 million

The amount can range from 25 percent to 90 percent of eligible costs (in case of de minimis aid on pre-implementation work, up to EUR 200,000), depending on the type of work, company size, cooperation with third parties, and dissemination of project results
Type of incentive Cash grant
Deadline 29 June 2018

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

Administered by the National Centre for Research and Development (NCRD), InnoMOTO supports industrial research and experimental development or experimental development in the automotive industry carried out by enterprises or consortia consisting of at least two entrepreneurs. Projects must be located outside of Mazowieckie province.

The grant is available for the following areas:

  • Innovative production, regeneration, recovery, or recycling technologies;
  • Innovative vehicles and drives; 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, company size, cooperation with third parties, and dissemination of project results
Type of incentive Cash grant
Deadline 10 July 2018

Support for investment in R&D infrastructure of enterprises (Measure 2.1 smart growth operational programme)

Administered by the Ministry of Development, Measure 2.1 is designed to support the creation and development of R&D centres. The programme is available to enterprises complying with National Smart Specializations and cooperating with small or medium-sized enterprises or research institutions.

The grant is available for the following types of expenditure:

  • R&D infrastructure and equipment,
  • Construction work and materials, and
  • Installment/lease/purchase of real estate (up to 10 percent of all eligible costs).
Scheme budget The amount can range from 10 percent to 70 percent of eligible costs depending on the type of work, company size, and location of the project
Type of incentive Cash grant
Deadline 6 July 2018

Contact your Poland representative

Dominika Orzolek
senior manager
+48 881 950 969

Portugal

Incentives for technology R&D (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 specialization.

The leader of the consortium must ensure at least 30 percent of the eligible investment, with a minimum investment of 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, 75 percent of the incentive is non-refundable and 25 percent is refundable, without interest

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


For non-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

Contact your Portugal representative

Sérgio Paulo Oliveira,
partner
+35 12 1042 7527

Singapore

R&D tax incentive

Enhancements to the R&D tax regime were announced on 19 February 2018 in the Budget 2018, as part of the efforts to create an innovative culture and build up technological capabilities in local companies.

Under the enhanced R&D tax incentive, every dollar of qualifying expenditure spent on qualifying R&D activities will be able to benefit from enhanced tax deductions of 250 percent. No expenditure cap will be imposed.

Qualifying expenditure for the enhanced 250 percent tax deduction currently is limited to local expenditure incurred on staff salaries and consumables, and the portion of outsourced R&D expenditure (including payments made under cost sharing agreements) that relates to local staff salaries and consumables. The remaining expenditure on R&D activities continues to enjoy a 100 percent tax deduction.

Scheme budget R&D tax incentive regime
Type of incentive Tax incentive
Deadline From year assessment 2019 to 2025

Contact your Singapore representative

Lee Tiong Heng,
partner
+65 6216 3262

Eugene Penafort,
manager
+65 6530 5511

United States: New Jersey

Grow New Jersey Assistance Program

On 16 January 2018, Governor Christie signed a bill that modifies New Jersey’s tax credit transfer provisions under the Grow New Jersey Assistance Program (Grow NJ), as follows:

  • Gain or income derived from the sale or assignment of certain tax credit transfer certificates is excluded from New Jersey income.
  • The period for transferees to use the Grow NJ credit is extended from three years to 20 years.
  • The sale or assignment of tax credit to an affiliate is exempt from the 75 percent measure of consideration (floor on sale price of Grow NJ credit).

Grow NJ offers discretionary, sellable income tax credits for businesses making investments and creating or retaining jobs over certain thresholds in New Jersey. Application and pre-approval requirements exist.

Scheme budget Grow NJ Benefits range from USD 500–USD 15,000 per new job, per year for 10 years, with up to 50 percent of these amounts for retained jobs
Type of incentive Fiscal incentives
Deadline N/A

Contact your United States: New Jersey representative

Douglas Tyler,
managing director
+1 212 436 3703

United States: Florida

Florida Triumph Gulf Coast Fund

Companies with relocation or expansion plans could significantly benefit from the Triumph Gulf Coast Fund. The program, which was established with settlement funds related to the 2010 Deepwater Horizon oil spill, is aimed at facilitating economic development in Northwest Florida and the Panhandle region. It focuses primarily on workforce training and public infrastructure.

The region is being creative in ways to utilize this program, including a proposal to offer a 100 percent property tax abatement for 10 years for competitive job creation projects. Counties, cities, state colleges, and other entities in the Florida Panhandle currently are applying for these funds.

Scheme budget USD 1.5 billion life time program budget over the next 15 years. The first installment of USD 300 million has been made available for applicants to pursue under the control of a board of seven Northwest Florida private sector business leaders responsible for awarding funds
Type of incentive Fiscal incentives
Deadline Ongoing

Contact your United States: Florida representative

Douglas Tyler,
managing director
+1 212 436 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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