Jul 17, 2024
Is the development of software eligible for funding under the Research Allowance Act?
The development of software can be eligible for funding under the Research Allowance Act (FZLG). However, this is a complex process that requires precise delineation.
In principle, software development projects that involve genuine research and development work can be funded. This includes innovative solutions and technological advancements that go beyond the current state of the art.
However, software developments that are limited to standard applications or the support of existing systems are not eligible for funding. These activities are considered routine developments and not research and development projects within the meaning of the FZLG.
For companies, this means that a thorough examination and documentation of project contents is necessary to determine eligibility for funding.
At Innoscripta, we have already successfully obtained approval for numerous projects and therefore possess extensive experience and expertise in this field. Let us advise you to optimally utilize your funding opportunities.
You Might Also Like
Dec 05, 2025
New Forschungszulage rules for 2026: 20% overhead claim and increased assessment basis
On June 4, 2025, the German government took a remarkable step by adopting the draft for an immediate tax investment programme. One of the key points included in this draft is the enhancement of Forschungszulage (Research Allowance) starting from January 1, 2026. This update is a part of the "Growth Booster" programme, which has the broader aim of strengthening the nation's position as an innovation-driven economy. Furthermore it indicates the focus on developing better conditions for R&D investments by expanding its scope and widening access to tax-based incentives.Key updates to the Forschungszulage in 2026The qualifications and eligibility of a research project to claim Forschungszulage are well-defined and the application process includes two steps, namely, acquiring a BSFZ certificate stating the R&D nature of the project and submission of the application to the tax office, where the financial claim will be validated and approved. According to the draft bill adopted by the German Federal Cabinet on June 4, 2025, there are two updates that are highly in favour of companies commencing R&D projects in Germany.1. Introduction of a 20% flat-rate overhead allowanceIn addition to traditional expenses like personnel costs and contract research costs, as per the new updates, a 20% flat-rate overhead operating costs can be claimed. The change is scheduled to be applied to the research projects starting on or after January 1, 2026. This helps companies conducting R&D to obtain increased financial support, as it does not require any additional documents to claim the flat-rate overhead under the research allowance.2. Increase in maximum assessment basis to €12 millionFrom 2026, the maximum assessment basis for calculating Forschungszulage will increase from €10 million to €12 million per year. This will result in a research allowance of €3 million and up to €4.2 million for SMEs. Previously, maximum R&D costs were increased from €4 million to €10 million and the new update underlines the country's long-term commitment to nurturing research. It also indicates a futuristic framework that encourages companies to plan for R&D ardently.The updates are applicable to companies with qualified research initiatives in different sectors and sizes like start-ups, SMEs and large enterprises. The measures are presently scheduled to be applicable until 2030 for research projects commencing on or after 1 January, 2026. ConclusionThe changes in Forschungszulage signify more than mere improvements; they reflect the futuristic view and national focus to strengthen innovation and R&D. By expanding the maximum assessment basis and allowing a 20% flat-rate overhead claim, the government is responding to the needs of companies with research projects and promoting innovation and R&D. The process to claim Research Allowance is streamlined with predefined application requirements and this policy increases the effective funding base and makes the programme more attractive to companies to gain the best financial support their research projects deserve.For companies with a futuristic view, this is an opportunity to plan and align their research projects and leverage the tax incentive programme, as the government is actively building an environment where innovation is not just encouraged but significantly supported.
Dec 02, 2025
Börsenradio interview: innoscripta on growth, data infrastructure and Q3 results
At the Deutsche Börse Equity Forum, Börsenradio interviewed Max Hunger and Johanna-Luise Pontani about innoscripta’s strong Q3 performance, its data-driven approach to funding processes and the scalability of the Clusterix platform. The full interview is now available.Listen to the full episode:https://www.brn-ag.de/45020-innoscripta-Q2-2025-EKF-
