Research Allowance
Tax Incentives for Research & Development
The research allowance is a tax incentive for R&D projects in Germany. Companies can be reimbursed up to 35% of eligible R&D expenses.
Your Chance for Financial Support
Have you not used the research allowance in recent years but had innovation projects running? Applications can also be submitted retrospectively for the years 2021 to 2024.What Types of R&D Activities are Eligible?
You will be surprised of what is considered eligible research and development.
Basic Research
- Fundamental scientific principles
- Understanding new phenomena
- Theoretical framework development
Applied Research
- Novel solutions to specific problems
- Practical application of knowledge
- Improvement of existing technologies
Experimental Development
- Prototypes and pilot projects
- Experimental production
- Testing new technologies
Growth Opportunities Act:
Investments in R&D become even more attractive
The BMF letter on granting the research allowance dated February 7, 2023 provides clarity.
Higher Funding Rates
Externally commissioned R&D projects and SMEs receive even greater support.
Broader Scope of Application
Depreciation of movable and depreciable assets now also counts as eligible expenditure.
Expanded Assessment Base
The upper limit of eligible costs increases from 4 million to 10 million euros per corporate group per year.
Benefit Quickly
Research allowance can now also be credited against income tax liability as part of advance tax payments.
