News & Updates

Forschungszulage March 2024: All Changes Explained

Oct 12, 2024 · Erich Lehmann

Explain this article with AI

ChatGPT

Claude

Perplexity

On 22 March 2024, the Act to Strengthen Growth Opportunities, Investments and Innovation as well as Tax Simplification and Tax Fairness (Wachstumschancengesetz) introduced important amendments to the Forschungszulagengesetz (FZulG). Source: DIP Bundestag.

Key Changes at a Glance

Aspect	Original rules	From 28 March 2024	Impact
Assessment base	€4M	€10M	Maximum allowance rises from €1M to €3.5M
Funding rate for SMEs	25%	35%	Higher support for small and medium-sized enterprises
Funding rate for large companies	25%	25%	No change
Tangible investments	Not eligible	35% / 25% of depreciation	First-time inclusion of investments
Hourly rate for own work	€40	€70	More attractive support for sole traders
Contract research	60% of costs	70% of costs	Effectively 24.5% (SMEs) / 17.5% (large) of total costs

Timing of the New Rules

Pro-rata Calculation Across Periods

The calculation for the year 2024 is done on a pro-rata basis using actual calendar days:

87 days (1 January to 27 March): Old rules with 25% funding rate
279 days (28 March to 31 December): New rules with increased funding rates

A detailed explanation of the calculation can be found under Berechnung. If you want to compare the 2024 and 2026 changes side by side, also take a look at our guide Neuerungen 2024 & 2026.

Increased Assessment Base

Raised to €10 million (previously €4 million)
Maximum annual Forschungszulage of up to €3.5 million (previously €1 million)

This more than doubled assessment base allows companies and corporate groups (concerns) to receive a significantly higher funding amount.

Improved Funding Rates for Small and Medium-Sized Enterprises

SMEs now receive 35% of eligible costs (previously 25%)
Large companies: still 25% of the assessment base

Small and medium-sized enterprises therefore benefit particularly from the revised funding scheme.

Inclusion of Tangible Investments

For the first time, depreciation on tangible investments can be taken into account:
- 35% of depreciation for SMEs
- 25% of depreciation for large companies
Applies to depreciable movable fixed assets with a direct project connection

This represents an important expansion of eligible costs, which were previously limited to personnel costs and contract research.

Improvements for Self-Employed Researchers

Increased hourly rate for own work: €70 (previously €40)
Also applies to co-entrepreneurs (Mitunternehmer)
Unchanged: a maximum of 40 working hours per week are eligible

This increase makes the Forschungszulage significantly more attractive for sole traders and co-entrepreneurs.

Higher Funding for Contract Research

Eligible share of contract research costs: 70% (previously 60%)
Funding rate applied to that share:
- SMEs: 35% (effectively 24.5% of total contract costs)
- Large companies: 25% (effectively 17.5% of total contract costs)

This improvement particularly benefits companies that collaborate with external research institutions.

Frequently asked questions

The new rules apply to eligible costs incurred after 27 March 2024 (effective date: 28 March 2024).

For small and medium-sized enterprises (SMEs), the funding rate has increased to 35% since 28 March 2024 (previously 25%). For large companies, it remains at 25%.

70% means: this share of the contract research costs can be included in the assessment base. The funding rate is then applied to that amount (SMEs 35%, large companies 25%).

Not the purchase price, but depreciation on certain depreciable movable fixed assets can be eligible, provided they are required for the project and the relevant conditions are met.

Back to overview

Questions about your project?

Drop us a line about what's on your mind — we'll get back to you personally and without obligation.