Grants and Incentives Program Updates: November 2015 | Deloitte US has been added to your bookmarks.
Grants and Incentives Program Updates: November 2015
Global developments affecting research and development
This monthly publication provides updates/summary of the latest global developments affecting research and development, US manufacturing and production activities, employment activities, real estate and capital investment, and sustainability initiatives. More than 50 countries offer specific tax incentives, and this newsletter focuses on identifying and outlining what could be the right incentives for your organization.
Energy Research Program–Energy efficiency in production processes
The Energy Research Program is aimed at R&D activities that seek to increase the energy efficiency in production processes:
- Innovative developments relating to thermal processes in production
- Increasing the efficiency of techniques for the use of industrial waste heat Innovative measurement and control systems for the optimization of energy usage in production
- Increasing material efficiency in the area of energy-intensive raw materials
- Energy-efficient process technology
Transport Research Program: New vehicle and system technologies
The new transport research program, “New vehicle and system technologies” is aimed at R&D projects in the following areas:
Automated driving, including specifically: Innovative sensors and actuation systems; High-precision localization; Fast, inter-vehicle and vehicle-to-backend communication solutions; (sensor) Data fusion and processing; Man-machine-interaction
Innovative vehicles Reduction of energy consumption and emissions in road and rail transport including specifically: Increase in energy efficiency by using light weight construction; Optimized aerodynamic characteristics; Reduced frictional resistance in the complete drive trains; Innovative drive train technology
Energy suppliers/Grid operators/ICT/Manufacturing
Kopernikus–project for energy revolution
The program is aimed at funding R&D projects that identify suitable technologies for the “Energiewende” (the transition by Germany to an energy portfolio dominated by renewable energy, energy efficiency and sustainable development) and develop them up to a demonstration level. Focus areas are:
Projects can focus on:
- New network structures (e.g. definition of communication standards)
- Flexible usage of renewable energy resources/Power-to-X (e.g. economical usage and storage concepts)
- Industrial processes and fluctuating energy supply (e.g. integration of energy intensive production in new energy supply scheme)
- Transformation and connection of energy supply (e.g. system integration and new market regulations)
Cross-platform production in digital media
Competition run by Innovate UK to support projects that address convergence in digital media technologies. The competition covers film, television, online video, animation and video games, and covers pre-production, production and post-production processes, particularly for visual effects technologies.
Projects must be business-led, collaborative and focus on industrial research.
Projects are expected to last nine to 18 months and to range in size from GBP 300,000 to GBP 750,000.
UK-India collaborative industrial R&D competition: Clean-tech, affordable healthcare and ICT
Joint Innovate UK and the Indian government competition to support projects that propose new commercial solutions to critical challenges impacting the socio-economic growth and development of India in relation to its clean-tech, healthcare and ICT sectors. India must be the principal market.
Projects must be collaborative and involve a UK and an Indian lead business, but other businesses and research organizations can collaborate in the consortium.
Projects are expected to range in size from GPB 350,000 to GBP 450,000 (UK project costs) and last for up to 24 months.
UK-China research and innovation bridges competition
Joint competition with Innovate UK, the Research Councils UK (RCUK) and the Ministry of Science and Technology (MoST) for the People’s Republic of China to support projects that propose new commercial solutions to critical challenges impacting the socio-economic growth and development of China in relation to energy, healthcare, urbanization and agri-food. China must be the principal market.
Projects must be collaborative, involving both UK and Chinese participants, with both a UK lead partner and a Chinese lead partner. On the UK side, projects can be led by a business or a research organization.
Projects are expected to range in size from GPB 800,000 to GBP 1 million (UK project costs) and last for up to 24 months.
Job Development Investment Grant Program (JDIG)
The JDIG is a discretionary incentive that provides sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees. JDIG grants can result in payments to a business for up to 12 years, or 20 years for a high-yield project. A “high-yield project” is defined as a project for which the agreement requires that a business invest at least $500 million in private funds and create at least 1,750 eligible positions. The sunset date is extended to 1 January 2019.
New York City
New York City biotechnology tax credit
For taxable years beginning on or after 1 January 2010, and before 1 January 2019, a taxpayer that is a qualified emerging technology company that engages in biotechnologies, and meets certain additional criteria can claim the following three New York City tax credits:
- A credit of 18 percent of the cost or other federal income tax basis of research and development property and certain other costs and fees
- A credit of 9 percent of qualified research expenses
- A credit of 100 percent of its training expenses, up to USD 4,000 per employee per calendar year
The credit may be claimed against the general corporation tax and unincorporated business tax for amounts paid or incurred for certain facilities, operations, and employee training in New York City. It generally is limited to companies with 100 employees or less, 75 percent of which are located in New York City, in addition to certain other eligibility criteria. Application and approval is required to claim the credit.
New York City Relocation and Employment Assistance Program and Lower Manhattan Relocation and Employment Assistance Program
The Relocation and Employment Assistance Program and Lower Manhattan Relocation and Employment Assistance Program offers business income tax credits for relocating jobs from outside of New York City or below 96th Street in Manhattan to designated locations above 96th Street in Manhattan or in one of the other four boroughs and eligible areas of Lower Manhattan. The amount of these credits can range from USD 1,000-USD 3,000 per year per job for 12 years tied to employment growth in an eligible area.
Credits may be refundable for the year of relocation and the next four years, if they meet certain requirements. Unused credits from subsequent years may be carried forward for five years.
Rhode Island New Job Creation and Real Estate Incentives
Rhode Island has launched two new incentive programs: Qualified Jobs Incentive Tax Credit and The Rebuild Rhode Island Tax Credit.
The Qualified Jobs Incentive Tax Credit provides a base tax credit for (1) companies relocating to the state and creating a minimum number of new jobs, and (2) for current Rhode Island companies growing their in-state workforce by a threshold percentage. The Qualified Jobs Incentive Program’s annual base tax credit is USD 2,500 for each new full-time job created or up to USD 7,500 per job if specific criteria are met.
The Rebuild Rhode Island Tax Credit provides a tax credit of up to 20 percent of project costs to qualified real estate projects of USD 5 million or more that demonstrate a financing gap.
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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