Grants and incentives program updates: February 2017 | Deloitte US has been added to your bookmarks.
Grants and incentives program updates: February 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 inventive 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.
The Potential Programme
The programme allows businesses to obtain a grant amounting to 50 percent of eligible costs for the establishment or development of centres for industrial research, development, and innovation, regardless of the size of the enterprise and place of realization. Project grants are available in an amount ranging from EUR 74,000 to EUR 2.8 million, or EUR 5.6 million in economically distressed regions and areas with a high level of unemployment.
*Monetary amounts are converted using the current rate (CZK/EUR).
Super depreciation measures extended
R&D and industrial investments can benefit from an exceptional extra depreciation equal to 40 percent of the original value of eligible assets (i.e. R&D and industrial materials and equipment) manufactured, purchased, or acquired through leasing or rental with a call option before 15 April 2017. Eligible assets ordered before that date can benefit from the incentive if certain requirements are met (e.g. payment of a 10 percent deposit before 15 April 2017 and acquisition within two years of the order).
The depreciation start date is the date of the acquisition of the asset.
Young innovative company status “JEI” renewed
Companies with JEI status (a new and independent small and medium-sized enterprise (SME) established within the past eight years and whose R&D expenditure represents at least 15 percent of total expenditure) created before 31 December 2019 can benefit from the following:
- Exemption from corporate income tax for a two-year period, with 100 percent of the tax liability eliminated for the first profitable year and 50 percent of the tax liability eliminated for the second profitable year, subject to certain limits,
- Exemption from land tax and local tax contributions for up to seven years, and
- Capped exemption from the employer’s social insurance contributions on the remuneration of R&D staff for seven years (reducing the employer’s total social charges from 50 percent/40 percent to 20 percent/15 percent)
PIA3 “Future’s Investment Programme” launched
The third PIA investment programme, a national funding scheme, is open, with a total budget of EUR 10 billion, EUR 4.1 billion of which will support a company’s innovation and development. Actions that support a company’s modernization (priority to SME and collaborative projects) will mainly focus on:
- Modernization of industrial procedures (automatization, 3D printing, internet of things),
- Staff training actions, and
- Collaborative innovative projects.
The project calls will be competitive and should be presented in a collaborative framework. For a list of the selected topics, visit PIA3 Gouvernement.fr and for the list of projects, visit project calls.
Improved tax credit on video games
As from 1 January 2017, companies that create original and certified video games can benefit from a tax credit of 30 percent, capped at EUR 6 million per fiscal year, if the following conditions are fulfilled:
- Development costs are more than EUR 100,000 per video game,
- The goal is to bring the games to commercialization, and
- The games are created by French, EU staff, or French residents (the latter comprising French nationals and non-French nationals residing in France).
The effective date of the measure will be set by decree.
Energy efficient and climate friendly production processes
This funding scheme focuses on investment projects that improve energy efficiency in industrial production processes, especially:
- Changes in production processes regarding energy-efficient technology,
- Efficient use of energy in production processes or production facilities, i.e. waste heat recovery, and
- Other measures to optimize production processes regarding energy efficiency.
Strategies to prevent spread of antibiotic-resistant germs
This scheme focuses on R&D projects that develop new concepts to increase intervention and prevent the spread of antibiotic-resistant germs in the healthcare, agriculture, and food sectors.
The following topics are of major interest:
- Assessment of new methods to improve and improve hygiene and sanitation standards to reduce infections in healthcare settings,
- Comparative effectiveness and economic evaluation of the implementation of new and/or more cost-effective methods for rapid detection and diagnosis of infections, and
- Investigations of the efficacy and effectiveness of behavioral intervention strategies and public awareness strategies.
This scheme focuses on R&D projects that aim to strengthen city-rural relations and achieve an integrated, sustainable development of regions.
The scheme focuses on:
- Joint sustainable developments of urban and rural areas,
- Development of a sustainable regional “circle” economy, and
- Improving the joint information and knowledge-based decision-making of urban and rural actors.
Attraction centre programme
The aim of this programme is to develop the eastern Anatolia and south-eastern Anatolia regions of the country. Investments in predetermined cities can benefit from this incentive (Adıyaman, Ağrı, Ardahan, Batman, Bayburt, Bingöl, Bitlis, Diyarbakır, Elazığ, Erzincan, Erzurum, Gümüşhane, Hakkâri, Iğdır, Kars, Malatya, Mardin, Muş, Siirt, Şanlıurfa, Şırnak, Tunceli, and Van). The basic areas within the scope of this programme are:
- Consultancy service support,
- Free land allocation for investment,
- Turnkey factory construction,
- Interest-free investment loans,
- Reduced interest working capital loans,
- Transportation of manufacturing facility support,
- Call centre and data centre investment support and energy support for data centres, and
- Other support elements.
Different requirements apply to benefit from each of the support offerings.
Collaborative R&D: APC7, anchoring low carbon technology
Up to GBP 35 million in collaborative R&D funding is available in the latest round of Advanced Propulsion Centre (APC) competition funding. This is delivered in partnership with the Department for Business, Energy, and Industrial Strategy (BEIS) and Innovate UK.
The aim of the competition is to take demonstrated on-vehicle technologies towards commercialization in either on-road or off-road vehicles. Grant-funded projects must:
- Develop technologies that will lead to significant reductions in vehicle CO² or other emissions,
- Align with Automotive Council Technology Group roadmaps, and
- Develop the United Kingdom’s supply chain capability in low carbon vehicle propulsion or light weight systems technology.
Projects are expected to range in size from total costs of GBP 5 million to GBP 40 million and should last between 18 and 42 months. Projects must be collaborative, and must include at least one vehicle manufacturer and/or a tier 1 supplier as part of the consortium and at least one SME partner.
Up to 50 percent of project costs for industrial research is available, and up to 25 percent for experimental development for a large company. For a SME, the incentive could be worth an extra 20 percent or 10 percent, respectively, depending on the size of the company.*
* European Commission definition of a SME: A small company must have fewer than 50 employees and either turnover not exceeding EUR 10 million or a balance sheet not exceeding EUR 10 million; and a medium-sized company must have fewer than 250 employees and either turnover not exceeding EUR 50 million or a balance sheet not exceeding EUR 43 million total.
SME R&D: Biomedical Catalyst 2017 round 1
The aim of this competition is to develop innovative health care technologies and processes that will help provide:
- Disease prevention and proactive management of health and chronic conditions,
- Earlier and better detection and diagnosis of disease, leading to better patient outcomes, and/or
- Tailored treatments that either change the underlying disease or offer potential cures.
The competition will support R&D in the form of a “primer award” to conduct a technical evaluation of the project idea through to proof-of-concept in a model system.
Projects are expected to range in size from total project costs of GBP 200,000 to GBP 1.5 million. Projects should last up to two years, and must start by 1 August 2017 and end by 1 August 2019.
An SME must lead the project and can apply individually or in collaboration with another entity (business, research base, or third sector). The project must be carried out in the United Kingdom.
The Biomedical Catalyst supports innovative solutions to health care challenges. Innovate UK, the Medical Research Council, and Scottish Enterprise fund Biomedical Catalyst awards.
Up to 70 percent of project costs for small companies is available, and up to 60 percent for medium-sized companies is available.
Collaborative R&D: Commercialisation of quantum technologies 3
Innovate UK is to invest up to GBP 13 million in quantum technologies.
The aim of this competition is to encourage collaborative R&D projects and feasibility studies that will:
- Develop prototype devices and demonstrators of quantum technologies or their component technologies, or
- Improve the understanding of the technical, business, or market challenges of taking a new device or service to market.
The devices may be:
- Computing, or
- Other devices that use quantum effects of superposition or entanglement.
Proposals must be collaborative and a UK-based business must lead the project. There are two streams of support available:
- Feasibility studies: Projects should last between six and 12 months with costs ranging from GBP 50,000 to GBP 500,000; and
- Collaborative R&D: Projects should last between 12 and 18 months with costs ranging from GBP 500,000 to GBP 2 million.
Up to 50 percent of project costs for industrial research is available, and up to 25 percent for experimental development for a large company. For a SME, the incentive could be worth an extra 20 percent or 10 percent, respectively, depending on the size of the company.
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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