Applications for the new research allowance published
The Certification Office for the Research Allowance (BSFZ) has published the digital application forms for the new tax allowance.
As a result, it is now possible for all tax-paying companies to have their personnel costs and costs for contract research in their research and development projects reimbursed at a rate of 25 percent via tax. ARTTIC Innovation GmbH, the consulting company specialized in research funding, supports research companies in the correct design of the extensive application procedure.
“This milestone has been a long time coming. After political wrangling over the research allowance law, it was enacted last year in time for 2020, effective at the beginning of the year. Now the applications for 2020 have to be submitted,” explains Anne Baumgärtel, team leader for the research allowance at Arttic. The tender for the project executing agency, the certifying body, lasted until July and was concluded with the announcement of the three project executing agencies – VDI Technologiezentrum GmbH, AIF Projekt GmbH and the German Aerospace Center – DLR . On behalf of the Federal Ministry of Education and Research (BMBF), these three institutions review applications for eligibility and amount. With the positive certification according to § 6 of the Research Grant Act (FZulG), a legal claim to the grant arises via the income or corporate tax return.
The expenses can be taken into account retroactively from January 1, 2020. The maximum amount of tax credit that can be achieved is one million euros.
The certifying agencies indicate in several places that they will not provide advice before an application is submitted. Its task is to review and decide on the eligibility of projects according to § 6 of the Research Grants Act (FZulG). The gap in consulting is filled by funding consulting companies such as ARTTIC Innovation GmbH.
Anne Baumgärtel of ARTTIC: “Because of the complex rules for defining research, describing a project in a few sentences is not easy.” ARTTIC has already seen a flurry of activity on the research allowance for months. “Eligibility testing is particularly frequently requested,” Baumgärtel added. As part of a service contract, ARTTIC checks eligibility in advance and supports the researching companies with the new application in accordance with the guidelines. “This is a job for experts who have filed thousands of such applications across Europe and know the main pitfalls,” Baumgärtel said. “It is more efficient if qualified scientists in the companies can focus on their core competencies. Especially since our experts achieve a higher funding amount because of the experience.”
How the government’s draft of the Growth Opportunities Act refines the research allowance
Government draft of the Growth Opportunities ActThe government draft of the submitted Growth Opportunities Act has once again undergone a significant redesign compared to the draft bill (§ 33 from p. 71). The revision regarding the Research Grants Act rewards small...
Until when can the R&D tax credits be applied for retroactively for 2020?
Until when can the R&D tax credits be applied for retroactively for 2020?As we wrote in September, the retroactive application for the R&D tax credits is one of its unique selling points in German project funding. But even this generous regulation has its limits....
How can the research allowance get better?
How can the research allowance get better?Accompanying comments on the DIHK short survey of September 6, 2022. A recently published survey by the Association of German Chambers of Industry and Commerce (DIHK) provides revealing insights into how companies perceive the...
