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Global investment and innovation incentives updates: October 2017

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.

Austria

R&D tax credit

The R&D volume-based tax credit for all qualified R&D expenditure will be increased from 12 percent to 14 percent as from 1 January 2018. There is no cap on the level of expenditure that can be included when claiming the incentive for in-house R&D expenditure, but external R&D expenditure is capped at EUR 1 million.

The credit may first offset current year tax liabilities, but is refundable to the extent it exceeds the amount of the company’s tax liabilities. Consequently, the credit can provide the equivalent of a cash grant for companies in a tax loss or low profit position. The R&D tax credit can be claimed by any company that carries out research activities in Austria, regardless of its size, industry, or legal form.

Scheme budget N/A
Type of incentive Tax credit
Deadline N/A

Contact your Austria representative

Herbert Kovar,
partner
+43 1 53700 3600

Jan-Martin Freese,
manager
+43 1 53700 7770

Czech Republic

Support for publicly accessible charging and filling stations for cars with alternative fuel drives

The support will be announced during autumn 2017, and will be divided in four sub-programmes:

  • Introduction of publicly accessible high-performance charging stations in the backbone network or the introduction of regular charging stations and the modernisation of existing charging stations that are part of the supplemental network,
  • Development of infrastructure for compressed natural gas filling stations,
  • Development of infrastructure for liquefied natural gas filling stations, and
  • Development of infrastructure for publicly accessible hydrogen filling stations.

The programme will be intended for enterprises that have their registered office, branch, or organisational branch in the Czech Republic and that own and operate the relevant infrastructure. Other specific criteria will differ for each sub-programme.

The level of support will range between 30 percent and 85 percent of the associated costs, depending on the supported activity.

Scheme budget EUR 44.5 million
Type of incentive Cash grant
Deadline TBA

Contact your Czech Republic representative

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

Germany

Promotion of research projects within the innovation and technology analysis framework

The innovation and technology analysis (ITA) is a method used to support the development of strategic perspectives, and examine the opportunities and challenges of social and technological change. As such, the supporting funding program finances research dealing with issues that require an inter- and trans-disciplinary approach.

The funding program supports research projects in the following fields of innovation:

  1. Artificial intelligence and virtual reality
  2. Digital platform systems
  3. Cultural diversity
  4. Requirements of participatory processes
  5. Governance of innovation processes
  6. Other projects that support the key concept and innovation policy goals of the ITA
Scheme budget Funding is disbursed to universities, research institutions, and companies (eligible parties) incorporated or active in Germany

Funding for companies can be up to 50 percent of eligible project costs for a duration of up to two years, up to a maximum of EUR 400,000

Universities and research institutions can be subsidised up to 100 percent of the project-related expenditure
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 13 November 2017 (first application step)

Funding program “Electronics and sensor systems for novel robotics applications (SensoRob)”

This funding program promotes innovation in the field of electronics and sensor systems for novel robotics applications, along the four levels of value creation: (i) components; (ii) data fusion and interpretation; (iii) system integration; and (iv) validation, testing, and safety features.

The program specifically promotes close cooperation between enterprises and research institutions, the involvement of small and medium-sized enterprises (SMEs), as well as the sustainable strengthening of value chains in the electronics industry. Projects focusing on robots for assistance functions, IT security, communications technologies, production research, autonomous driving, lifestyle/consumer products, or optical technologies are not eligible for funding.

Scheme budget Funding is disbursed to universities, research institutions, and companies (eligible parties) incorporated or active in Germany

Joint projects must include a partner with appropriate market access

Funding can be up to 50 percent (for industrial research)/25 percent (for experimental development) of eligible project costs, with a maximum funding per partner of EUR 20 million (industrial research)/EUR 15 million (experimental development)

Universities and research institutions can be subsidised up to 100 percent of the project-related expenditure
Type of incentive Non-repayable cash grant
Deadline Submission of a project outline: 15 January 2018 (first application step)

Funding program “Civil security— critical structures and processes in production and logistics”

This new funding program supports innovative security solutions to increase the resilience of processes and structures in production and logistics, with a focus on areas of a very sensitive nature (in the sense of critical infrastructure, e.g. in connection with the transition towards industry and economy 4.0).

Examples of research topics include critical production and logistic areas for German industry and the supply of critical goods (e.g. food and medicine); methods to analyze security and reliability, robust business continuity management; and solutions for the prevention, detection, and remedy of malfunctions and events resulting in damage (e.g. security strategies for the Internet of Things or the use of blockchain technology).

Scheme budget Funding is disbursed to joint projects of universities, research institutions, and companies incorporated or active in Germany, as well as authorities and municipalities (eligible parties)

The program also supports joint projects between German and Austrian partners (Austrian partners receive their share of funding from the Austrian ministry)

Funding can be up to 50 percent of eligible project costs for a maximum duration of three years (two years if cooperation includes Austrian partners)

German universities and research institutions can be subsidised up to 100 percent of the project-related expenditure
Type of incentive Non-repayable investment cash grant
Deadline Submission of a project outline: 2 February 2018 (first application step)

Contact your Germany representative

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

Hungary

EKD cash grant for R&D projects

The R&D cash grant aims to encourage the establishment of new R&D centers and the expansion of existing centers in Hungary. As from 2017, companies with R&D projects lasting one to three years and incurring eligible costs (e.g. personnel costs, depreciation, rental fees, and material costs) exceeding EUR 3 million on the R&D project during this period in Hungary (in any area of the country) may request grant.

Scheme budget Maximum aid intensity: 25 percent (exact grant amount to be determined by the government)

Maximum grant amount: EUR 15 million
Type of incentive Cash grant
Deadline N/A

Energy efficiency tax allowance

The energy efficiency tax allowance is a new corporate income tax allowance, announced in July 2017, to encourage the implementation of energy efficient technologies. The allowance is available for investments aimed at improving energy efficiency (i.e. the reduction of final energy consumption). The taxpayer may utilize the tax allowance to reduce its corporate income tax liability (up to 70 percent of the payable corporate income tax) during the five-year period after the project end date.

Scheme budget Maximum aid intensity:
Large enterprises: 30 percent
Medium-sized enterprises: 40 percent
Small enterprises: 50 percent

Maximum amount of tax allowance: EUR 15 million
Type of incentive Tax allowance
Deadline All year

Contact your Hungary representative

Csaba Márkus
partner
+36 1 428 6800

United Kingdom

Health, agriculture, and food challenges grant

This scheme aims to develop new and sustainable ways of producing food, as well as innovative treatments and therapies for diseases.

Examples of projects that may be supported include:

  • Increasing agricultural productivity
  • Improving food quality and sustainability
  • Advanced therapies (cell and gene therapies)
  • Precision medicine
  • Medicine discovery
  • Preclinical technologies
  • Advanced biosciences

A project usually should be led by a business and should include at least one SME. Research and technology organisations may lead projects in certain circumstances.

Scheme budget Project costs are likely to be between GBP 50,000 and GBP 2 million

Projects of up to GBP 100,000 are expected to last six to 12 months, and those of up to GBP 2 million to last one to three years

SMEs could attract up to 70 percent of their project costs, while support for large companies will be less than GBP 15 million
Type of incentive Cash grant
Deadline 6 December 2017

Contact your United Kingdom representative

Alistair Davies,
director
+44 (0) 29 20264272

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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