R&D tax credit (FZulG)

In order to stimulate research activities in Germany and to strengthen Germany as an investment location, the German government enacted the Act on Tax Subsidies for Research and Development.

In order to stimulate research activities in Germany and to strengthen Germany as an investment location, the German government enacted the Act on Tax Subsidies for Research and Development (R&D tax credit – FZulG).

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R&D tax credit (FZulG) in short

Budget Budget

The R&D tax credit is an uncapped tax subsidy and is not budgeted in the federal budget.

Intended audience Intended audience

Taxable entities as defined by the Corporate Income Tax Act or the Income Tax Act are eligible to apply.

Project type Project type

R&D projects, basic research, industrial research, experimental development (including prototype and pilot plant construction, product development), TRL 1–8.

Themes

Theoretical or experimental work undertaken primarily to acquire new knowledge, without any particular application or use in view.

Targeted research activities aimed at developing new products, processes, or services, which are not yet ready for the market.

Activities intended to develop new or improved products, processes, or services. These development projects are often closer to market introduction.

Software projects can also be eligible for funding if they have a clear R&D character, such as the development of new algorithms, technologies, or platforms.

Developments in areas such as artificial intelligence, biotechnology, robotics, or new materials that lead to market-ready products or services.

Projects focused on the development of new technologies in the field of renewable energy or energy-efficient solutions.

Research projects aimed at advancements in medicine, pharmacology, or biotechnology.

Which projects are eligible?

The projects must be innovative, meaning they must go beyond the current state of the art or science and must not represent a minor improvement of existing products or processes.

Would you like to apply for R&D tax credits (FZulG)?

We support companies with the R&D tax credits by assessing the eligibility of their projects and handling the entire application process. We ensure detailed and legally compliant documentation that meets the requirements of the tax authorities. This helps companies apply for and claim the tax credits efficiently and with minimal risk.

Our consulting team is happy to support you

Promote your innovation with a R&D tax credit

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