Unveiling the Potential of the Forschungszulage: A Guide for Start-ups and Scale-ups in Germany

German businesses committed to innovation shouldn’t overlook the Forschungszulage (funding for research and development). This government program offers a substantial financial incentive, reimbursing companies for a quarter of their (personnel) expenses dedicated to qualifying R&D projects.

Understanding the Funding Boost

The program offers a 25% reimbursement on eligible (personnel) expenses, capped at a maximum of €1 million per company per year. This can be a game-changer for startups and smaller companies with limited R&D budgets.

Qualifying for the Forschungszulage

The good news is, the Forschungszulage encompasses a broad range of R&D activities. Projects that focus on:

• Developing novel products or processes: This could be anything from creating a revolutionary new material to inventing a groundbreaking software solution.
• Improving existing technologies for enhanced efficiency: Are you finding ways to optimize current processes or technologies? The Forschungszulage might be able to support your efforts.
• Exploring innovative materials or methodologies: Pioneering new materials or methodologies can unlock a world of possibilities. The Forschungszulage can help fund your exploration.

Timing

1. Application for certification (Antrag auf Bescheinigung des FuE-Vorhabens): Good news! This can be done at any time: before, during, or after the project is completed. However, it must always be done before submitting the application for Forschungszulage to the Finanzamt.
2. Application for the grant (Antrag auf Forschungszulage beim Finanzamt): This can be done up to four years after the end of each fiscal year in which eligible expenses were incurred (regardless of the status of the R&D project).

But there are a few key things to remember

• Your project must demonstrably involve a scientific or technical advancement aspect.
• There needs to be a degree of inherent risk and scientific uncertainty.
• Activities exceeding the mere implementation of established knowledge are what the program targets.

Do’s and Don’ts of the Forschungszulage

• Do: Focus on activities directly related to the project’s R&D goals. This includes personnel costs for researchers, engineers, and technicians directly involved in the project’s innovative aspects.
• Don’t: Include routine tasks like administration, marketing, or sales activities in your application. These are not considered eligible personnel expenses under the Forschungszulage.
• Do: Elaborate on your basic research, industrial research, and/or experimental development activities in the project description. Be as technical as possible and describe your known unknowns.
• Don’t: Submit a generic application describing your development efforts. Tailor your application to the specific requirements of the Forschungszulage program.
• Do: Have a well-documented project plan. Maintain meticulous records of personnel time dedicated to the R&D project. Clear documentation is crucial for a successful application.
• Don’t: Estimate or guesstimate time spent on R&D activities. Accurate data and detailed planning is essential to demonstrate the legitimacy of your funding request.

Beyond the Basics: Maximizing Your Chances of Success

While the information above provides a good starting point, navigating the intricacies of the Forschungszulage can be daunting.

Scoping the right project

We go beyond simply informing you about the program. Our team of experts actively assists you in defining your project’s goals and activities, ensuring they align perfectly with the Forschungszulage’s criteria. We’ll work closely with you to maximize your chances of securing funding.

Focus on innovation – leave the bureaucracy to us

Morrow Collective understands your time is best spent on groundbreaking innovation. We take care of the entire Forschungszulage application process, allowing you to focus on what you do best. Our team meticulously documents your project’s R&D nature and crafts a compelling application that effectively highlights its innovative potential.

Here’s what makes Morrow Collective your perfect partner for unlocking the Forschungszulage:

• Eligibility Assessment: We meticulously evaluate your project’s alignment with the program’s criteria.
• Compelling Application Development: We craft a persuasive application that effectively highlights the R&D focus of your project. Including technical research and supporting documents.
• Streamlined Process Management: Our expertise allows us to guide you through the application process efficiently, saving you valuable time and resources.

Unlocking the potential with Morrow Collective.

Don’t let funding limitations hinder your R&D aspirations. Partner with us to secure more non-dilutive funding. We’ll guide you through every step of the process, minimizing your workload and maximizing your chances of securing the funding you deserve.