From now on, the calculation will be carried out solely with regard to the volume of expenditure. Companies will be eligible for 100% of their research expenditure.

The rate of the tax credit is 30% for R&D expenses up to €100 million and 5% beyond that. For businesses that are claiming this credit for the first time and for those which have not claimed it in the last five years, the rate is 50%. In total, €2.7 billion will be allocated to support businesses in their R&D projects.

The status of innovative start up company will be extended to academic start up companies. Small and medium sized businesses which are less than eight years old, which focus on a new activity and 15% of whose expenditure is dedicated to research are provided with numerous tax breaks as a result of the status of innovative start up company. The objective is to extend the benefits of this status to academic start up companies.

This is subject to the following conditions :

- at least 25% of the academic start up company must be directly managed or held by a student, by an individual who has been awarded a master’s degree or doctorate in the last five years, or by an individual engaged in teaching or research activities;

- the activity of the company must focus in the main on promoting research work, where the conditions for the implementation of this work will be set down in an agreement between the company and the higher education establishment.

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