Forschungszulage for mechanical engineering: your development work is eligible
New manufacturing processes, automation, test rigs, control systems: in mechanical engineering, R&D rarely happens in a lab. It happens in design, software and commissioning. That is exactly the work the Forschungszulage funds, at 25% of your eligible R&D costs, or 35% for SMEs. We handle the application, you invest less than 5 hours across 4 calls.
- success-based
- 100%success-based
- funding rate for SMEs
- 35%funding rate for SMEs
- success rate of our applications
- 92%success rate of our applications
Mechanical engineering: the strongest industrial Forschungszulage sector
Hardly any sector submits more Forschungszulage projects than mechanical and plant engineering. The ZEW/VDMA analysis (as of January 2024) shows: the money is there, but it is not collected automatically.
Projects submitted
from mechanical and plant engineering, more than from any other industrial sector
Share of all projects
that is the sector's share of all Forschungszulage projects submitted to the BSFZ
Companies
from mechanical engineering have already applied to the BSFZ
Calculated funding volume per year
with an estimated potential of €800 million
As of: ZEW/VDMA analysis January 2024. Number of applicant companies: BSFZ statistics, data as of 30 June 2026.
Approval rate compared
€1.47 billion in eligible R&D expenditure has already been claimed from the sector. Yet according to ZEW, roughly three quarters of the annual funding potential goes unclaimed, usually not for lack of R&D, but because of uncertainty, administrative burden and missing internal resources.
What counts as eligible in mechanical engineering
The BSFZ assesses your project against three criteria that build on the internationally used R&D definition. You do not need a world first. What the individual characteristics mean:
Automation and robotics
An energy-efficient gripper with a new sensor system whose control behaviour can only be validated in trials.
Test engineering and test rigs
New test rigs with variable load control where measurement accuracy and dynamics are uncharted territory.
AI in manufacturing
Machine-learning-based defect detection in the process, with an uncertain detection rate under real conditions.
Additive manufacturing
3D printing with new materials or process parameters whose material behaviour still has to be researched.
Drives, controls, digital twins
Novel drive and control concepts or highly dynamic closed-loop control with an open technical outcome.
Prototype construction
Prototypes as part of an R&D project, for validating, testing and iterating. Pure pre-series production does not count.
Not sure whether your project qualifies? In a short call we check it together, 5 minutes are enough for a first assessment.
Check eligibility in a callWhich costs you can claim
In mechanical engineering, the cost logic decides the size of the funding. Since 2024, machinery and test rigs count as well; from 2026 the overhead flat rate is added.
- Personnel costs
- 100% claimable: development, design, testing, software, proportional to R&D time
- Contract research
- 70% of the fee for external R&D contracts (for expenditure up to 27.03.2024: 60%), contractors based in the EU/EEA
- Machinery and test rigs
- Depreciation on newly acquired movable assets used exclusively for R&D (acquired, and project started, after 27.03.2024)
- Overhead flat rate
- A 20% flat rate on direct project costs, for projects starting in 2026 or later
- Own contributions
- €100/h for work from 2026 (until the end of 2025: €70/h), for sole traders and partners, max. 40 hours per week
- Funding rate
- 25% of eligible expenditure, 35% for SMEs
- Assessment base
- Up to €12 million per year from 2026 (28.03.2024 to the end of 2025: €10 million, before that €4 million); retroactive applications are capped at the limits in force at the time
Common doubts
The typical mechanical engineering misconceptions
Three sentences we hear again and again in first calls, and what actually applies:
“We do that research for the product anyway.”
That kind of product-driven development is the normal case for the Forschungszulage, not the exception. What counts is novelty, technical uncertainty and a systematic approach, not a separate research project or a dedicated R&D department.
“We only improve existing products, that is not innovative enough.”
If you resolve a technical uncertainty along the way, say in cycle time, precision, material behaviour or process stability, that can be exactly what R&D means. Novelty means new against the state of the art, not a world first.
“The project is already finished.”
Unlike a grant, the Forschungszulage does not have to be applied for before the project starts. You can claim expenditure from past years retroactively, as long as the assessment period of the relevant tax assessment is still open, regularly 4 years.
Do you recognise yourself in one of these sentences? Then let's clarify in a call what actually counts in your case.
Check your eligibility in a call8 benefits
Why is the Forschungszulage a good funding option?
Compared to traditional funding programmes, the Forschungszulage is the better choice for most companies.
- 1
Legal entitlement
No competition for budgets: if the criteria are met, funding must be granted.
- 2
Up to 4 years retroactive
Even completed projects can still be funded.
- 3
Open to all industries
Software, mechanical engineering, MedTech, construction: R&D is R&D, whatever the industry.
- 4
Even without profit
No tax burden needed, the allowance is paid out as a credit.
- 5
Less bureaucracy
No upfront project plan, no interim reports, no proof of use.
- 6
Fully digital process
Application via BSFZ portal and ELSTER, no paper, no postal mail.
- 7
Thematically open
No rigid topic catalogue: product development, process innovation, everything counts.
- 8
Broad cost base
Personnel costs, contract research and capital assets are eligible.
A finished application in 4 calls
You do not need an internal funding project. We identify your eligible projects, allocate people and costs, and draft the application so it holds up to the BSFZ review. Your effort: 4 calls, less than 5 hours in total.
- 01
Finance Checklist
30 min
We clarify which documents you need, as a company-specific checklist. You just forward it to your tax advisor.
- 02
Finance Review
30 min
We structure your data ourselves (employees, salaries, contractors) and clarify final questions. For you, it's just review.
- 03
Product & Innovation
45 min
We identify your innovation projects, assign employees by percentage, and discuss novelty and technical risk.
- 04
Final Review & Submission
30 min
You get an async review upfront. If everything checks out, we submit — otherwise we use call 4 as a deeper product call.
From real projects
Real projects from this industry, with the funding amounts that were actually approved.
Flying wind turbines generating energy at higher altitudes. 169,000€ through a combination of lightweight construction and intelligent control.
Common questions from mechanical engineering
Talk to people who understand your technology
In a first call we clarify which of your development projects are eligible and which costs you can realistically claim. 5 minutes are enough for a first assessment.
More industries
Eligible R&D looks different in every industry. Here is what counts in the other sectors.
Software & AI companies
Forschungszulage for software and AI teams: which projects are eligible and why applications fail. Recover 25%, or 35% for SMEs, of your eligible R&D costs.
View industry page →
MedTech & HealthTech
Forschungszulage for medical technology and digital health: eligible projects, R&D versus regulatory work. Recover 25%, or 35% for SMEs, of eligible R&D costs.
View industry page →
Food industry
Forschungszulage for food manufacturers: eligible recipe, process and packaging development. Recover 25%, or 35% for SMEs, of your eligible R&D costs.
View industry page →
Construction
Forschungszulage for construction companies: eligible projects from concrete formulations to AI scheduling, claimable costs and how it differs from ZIM, KfW and state programs.
View industry page →
Automotive
Forschungszulage for automotive suppliers: what is eligible, how to separate series launch and OEM contracts. Recover 25%, or 35% for SMEs, of eligible R&D costs.
View industry page →
Defense tech & dual-use
Forschungszulage for defense tech and dual-use: why the FZulG is technology-neutral, and how secrecy, dual-use demarcation and public procurement contracts play out in the application. 25%, 35% for SMEs.
View industry page →