Crédit Impôt Recherche (CIR) @ Bio Base Europe Pilot Plant: Agréé 2020-2021-2022
The French Ministry of Higher Education and Research has approved Bio Base Europe Pilot Plant as an organisation carrying out R&D activities for the account of private companies. BBEPP is included in the list of approved private research organisations at www.recherche.gouv.fr.
The French Research Tax Credit (Crédit d’impôt recherche, CIR) is general and does not target any specific sector or type of company – unlike most direct aid to R&D and innovation.
Who can benefit from the CIR?
Any industrial, commercial or agricultural organisation subject to corporate tax in France.
Which expenses are eligible?
Mainly,expenditures relative to human and material resources allocated to R&D, subcontracted R&D, technological watch, patenting or patent protection.
How to obtain the tax credit?
The CIR is deducted from the tax to be paid; or else it is refunded at the end of the third year. However, it is immediately paid to young companies under certain conditions. Companies that can neither deduct the tax credit nor obtain a refund can ask banks for loans on the basis of their research tax credit.
Computation of the Tax Credit
The CIR is based on the claimed volume of R&D expenditures. It is equal to 30 % of R&D expenditures up to EUR 100 million; beyond this threshold, the rate comes down to 5 %. For companies entering the scheme for the first time, the applicable rate is 50 % the first year, and 40 % the second year. Other public support to R&D (subsidies, refundable loans…) must be deducted from the base in order to compute the credit.