Research Allowance Act (FZulG): How to benefit from state funding for your innovation projects

What is the Research Allowances Act (FZulG)?

The Research Allowance Act is a tax-based funding instrument that supports companies in developing innovative solutions - regardless of industry or company size. Since 2020, eligible projects can be supported with a financial grant from the state. Particularly attractive: funding is possible retroactively, currently even for projects from 2021 onwards.

The amount of funding depends on whether you work with internal resources or external service providers:

• In the case of internal development (e.g. by the company's own employees), up to 35% of personnel costs can be funded. D

• In the case of external development (e.g. by a consultancy or software company such as Partake Consulting), 17.5% of the external project costs are eligible for funding. 

What is an eligible project?

Development projects that fall into one of the following three categories are eligible for funding (§ 2 FZulG):

• Basic research
• Industrial research
• Experimental development

In SMEs in particular, this often concerns individual software projects, data-driven optimizations or new technological developments. 

The important thing is: There must be a technical or scientific uncertainty - i.e. not a purely standardized development process.

Eligible - even with low code?

Yes, even if you use platforms like nedyx the development may be eligible for funding - provided that an independent, innovative contribution is made. The decisive factor is not the tool, but the degree of novelty and the company's own performance.

Two steps to a research allowance

1. project certification by the BSFZ
The technical review is carried out by the Research Grant Certification Office (BSFZ). They will determine whether the project meets the legal requirements. Link to the application form: www.bescheinigung-forschungszulage.de


2. assertion at the tax office
After positive certification, the research allowance can be applied for at the responsible tax office. 

*The research allowance must be applied for by the applicant company itself. 

Your advantage with Partake Consulting

With over 20 years of experience in data-driven projects, we know how innovation works. Our customers benefit from:

• Individual software solutions with measurable added value
• Software and consulting in Fusion
• Specialized in the needs of companies with complex structures
• Experience from over 600 successfully completed projects

Are you planning a new project? Then now is the right time!

If you want to launch an innovative project, it may be worth looking at possible tax advantages.

Start your project with us now - we have the technical and professional expertise to translate your ideas into efficient and sustainable solutions. 


Get in touch with us!