Finance: eligibility conditions for the Tax Credit on Innovation
ven., 15 nov. 2013 14:23:00 +0100
The Innovation Tax Credit (CII) is an extension of the Research Tax Credit (CIR) which allows for a 20% of the total of certain innovation fees to be received in the form of a credit for expenses incurred from 1 January 2013. A ceiling has been set by the legislator for 400,000 per annum.
A project is eligible for the CII if considered as "new" in the sense of being a tangible or intangible asset which has not yet been released on the market and which is different from existing products due to improved performances from a technical, eco-design, ergonomic or operational perspective. The project may be eligible if the product developed is new to the reference market as defined by the declaring company.
Expenses eligible for the CII are the same as those eligible for the CIR. Declaration of the innovation tax credit (integrated into the CIR declaration) should be filed at the same time as the declaration of balance of corporation tax (IS). Immediate repayment of the CII is possible under certain conditions by offsetting this from the corporation tax or using this amount. Just as the CIR, it is possible to benefit from the Preficir, pre-funding of innovation expenses by Bpifrance.