Grants and incentives program updates: January 2016 | Deloitte US | Tax has been added to your bookmarks.
Grants and incentives program updates: January 2016
Global developments benefiting business
This monthly publication provides a summary and updates on the latest global developments in 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.
R&D expenses super deduction
R&D incentives provide a direct corporate income tax benefit for taxpayers that are engaged in technologically innovative activities. The base level of the benefit is an additional deduction of 60 percent of qualifying R&D expenditure, which can be increased up to 80 percent if the company increases the number of researchers dedicated exclusively to R&D projects.
Provisional Measure 694/2015, published on 30 September 2015, originally proposed the suspension of R&D incentives (which were established by Law 11,196/2005) for calendar year 2016. However, the new measure was not converted into law during calendar year 2015, so the suspension now will not come into effect until 1 January 2017, and then only if PM 694/2015 is converted into law by 8 March 2016.
Medicine, biotechnology, measurement technology, sensors
Photonics system solutions for medicine and biotechnology
This R&D scheme targets the development of robust photonics system solutions for medical applications and biotechnology:
- Photonic procedures for application in biotechnology and for medical prediction, prevention, diagnosis, and therapy (e.g. functional imaging processes, intelligent bio-photonics for data mining on a real-time basis)
- Photonic procedures for medical boundary surfaces (e.g. sterilization and decontamination of boundary surfaces)
The program aims, in particular, at photonics system solutions allowing for a rapid application in practice (e.g. patient-oriented diagnostics/“in-vitro diagnostics”)
Manufacturing, e-Mobility, automotive
Flexible production technologies for electric propulsion
The scheme focuses on new or further development of production processes for electric propulsion systems:
- New winding technology ready for high-volume production
- Improvement of the production process for integrated power electronics, including automotive specific bonding methods ready for high-volume production
- New automated assembly concepts for mechatronic all-in-one systems
- New automated measuring and testing technologies
Medical technology, ICT, sensor technology
Interactive “wearable” medical technology
Funding will be available for research projects in the following areas:
- Innovative, smart, and connected “wearable” medical technology that can read vital data and be connected with other technologies via sensors
- New concepts improving the application security and practical use of such medical technology to increase the usability for patients and caretakers
- Innovative new concepts focusing on mining vital data and the visualization of such data, including innovative user interfaces for patients and caretakers
Bilateral innovation projects with China
Fourth call for proposals
A collaborative project involving at least one science and technology company from Israel and one from China may be able to secure funding for R&D activities aimed at developing a new product or new process. The joint industrial R&D project should aim at the development of cutting-edge innovation products and processes leading to commercialization in the global market.
Bilateral innovation projects with Hong Kong
R&D cooperation program
A collaborative project involving at least one science and technology company from Israel and one from Hong Kong may be able to secure funding for R&D activities aimed at developing a new product or new process. The joint industrial R&D project should aim at the development of cutting-edge innovation products and processes leading to commercialization in the global market.
INNOCHEM (Measure 1.2 of the Smart Growth Operational Program)
Administered by the National Center for Research and Development (NCR&D), this program supports industrial research or experimental development carried out by enterprises or consortiums of enterprises, consisting of at least two entrepreneurs, aimed at the production of basic products in the chemical industry (e.g. refined petroleum products, additives for fuels and mineral oils, fertilizers, plastics). To benefit, a project must fall within the scope of one of the R&D&I funding priorities in the “National Smart Specialization” and must include R&D activities related to one of the following: sourcing raw materials, production of basic products or production of specialized products, or new technologies.
Costs that are eligible for a grant include remuneration and outsourcing costs (up to 50 percent in the latter case); depreciation and leasing costs for R&D infrastructure and equipment; costs incurred on intangible assets, land, and buildings; other operational costs; and up to 17 percent of indirect costs. The enterprise must incur at least EUR 250,000 and a maximum of EUR 5 million in qualifying costs. The project implementation period cannot exceed three years.
Support for the development of European video games
Grant funding is available for activities relating to the development phase of narrative storytelling video games, regardless of platform or expected distribution method. In all cases, the video game must be intended for commercial exploitation. This call for proposals is aimed at European video game production companies that have been legally constituted for at least 12 months before the submission date and that can demonstrate a recent success. The maximum duration of individual projects is 30 months from the date of submission.
Research tax credit
On 18 December 2015, US President Obama signed into law legislation that affects the research tax credits. The legislation makes the research tax credit a permanent part of the Internal Revenue Code, ending the temporary status of this provision that has endured for 34 years. The law also enhances the availability of research credits for small businesses by allowing the tax credit, for the first time, to be applied against alternative minimum taxes and payroll taxes.
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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