Has the FZul become even more attractive in 2024?
Recently, the Wachstumschancengesetz has been passed -also further strengthening the Forschungszulage:
🏭 CAPEX now eligible for funding: Depreciation of acquisition and production costs of fixed assets can be recognized in FZul grant applications from 01.01.2024.
💸 FZul assessment base increases to EUR 10m per year: The maximum assessment base for expenses in the financial year 2024 increases from EUR 4m to EUR 10m
📈 Special boost for Start- and Scale-Ups: The funding rate for Start- and Scale-ups increases from 25% to 35%.
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Full story
With the announcement of the Wachstumschancengesetz on 27 March 2024, the German government has strengthened its commitment to invest in innovation in Germany. The law strengthens the Forschungszulage (FZul) significantly.
🏭 CAPEX now eligible for funding
With the Wachstumschancengesetz, CAPEX are eligible for funding for the first time. From the beginning of 2024, depreciation on the acquisition and production costs of CAPEX is eligible. The assets must be acquired or manufactured after 27 March 2024 and used exclusively for the company's own operations in the relevant R&D project.
💸 Assessment basis increases overall
For costs incurred from 27 March 2024, the assessment base increases to EUR 10m per year. Expenses incurred between 1 January 2024 and 26 March 2024 continue to have an annual assessment basis of EUR 4m This is the second increase in the assessment basis, which was originally set at EUR 2m per year.
📈 Special boost for Start- and Scale-ups
While the large corporates receive 25% of the assessment basis with the FZul, the funding rate for Start- and Scale-ups increases to 35%. Companies must fulfill the conditions of the official EU regulation of the SME definition, i.e. less than 250 employees and turnover of max. EUR 50m.
🔬 External research can now be included at a higher rate
Often, R&D activities are partly or completely carried out by external providers. The costs of contract R&D (“Auftragsforschung”) are also eligible for funding under the FZul and could previously be counted as 60% of the costs incurred in the assessment base. The eligible proportion has now been increased to 70%. This means that higher external research costs can now be included in the assessment base.
💪 Significant increase for flat rate of individual entrepreneurs
Up to now, work performed by individual entrepreneurs or partners (“Gesellschafter”) without an employment contract (“Eigenleistung”) was calculated at a flat rate of EUR 40 per hour in the assessment basis of the FZul. The new law increases this lump sum to EUR 70 per working hour. A maximum of 40 working hours per week can be taken into account as eligible costs. This represents an increase from EUR 83k to EUR 146k per year. The limit for total sum of eligible cost for individual entrepreneurs or partners without an employment contract remains EUR 200k within three years.
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