Research Allowance: Tax Incentives for Your Innovation

From concept to a fully functional prototype, we support you throughout the entire research allowance process, from application to payout.

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0 %

of your development costs

We assess free of charge whether your project is eligible for the R&D research allowance and prepare the complete application, including the technical description, state of the art, and risks. In addition, we structure your eligible costs and support you during follow-up questions so that all documentation is fully audit-ready.

€1 Million

Maximum assessment basis per year

4 Years

Can be claimed retroactively

100%

Success rate of our applications*

What is Research Tax Credit Funding?

The research allowance (Forschungszulage) is a tax-based incentive for research and development projects in accordance with the German Research Allowance Act (Forschungszulagengesetz). Companies can reclaim part of their R&D and development costs directly through their tax return, regardless of industry, company size, or profitability. Receiving the research allowance tax-free provides a direct liquidity advantage.
Up to 35% grant on eligible R&D costs
4 year retroactively applicable for ongoing or already completed projects
No competitive selection process, unlike ZIM funding or other grant programs

Eligible Costs & Benefits

Personnel Costs

Employees directly engaged in R&D activities.

External R&D Services

Partially recognized on a flat-rate basis.

Depreciation & Investments

For depreciable movable fixed assets.

Benefits at a glance:

Unlock your Research Allowance potential

Discover how much funding your company can claim through the Research Allowance (Forschungszulage). Get a personalized evaluation and expert support from eligibility check to successful submission.

In 4 Steps to Your Funding

STEP 1

Free Potential Assessment

Analysis of whether your project is eligible.

STEP 2

Project Certification (BSFZ)

Qualification of the R&D project.

STEP 3

Submission to the Tax Office

Tax-based claim submission.

STEP 4

Tax Benefit & Payout

Offset or reimbursement.
Felsaris stands for technology-driven innovation with a clear focus on precision, agility, and partnership. From the initial idea through prototyping to implementation, we develop smart, practical engineering solutions, powered by modern CAD, CFD, and CAE methodologies as well as AI-driven approaches.
What makes us different
Startups and SMEs value our hands-on mindset, fast execution, and close collaboration. We don’t see ourselves as a traditional service provider, we become part of your innovation team, with clear ownership and a dedicated point of contact. As part of our innovation consulting, we help structure R&D projects in a systematic and compliant way, supporting successful R&D tax incentive advisory processes.
Who we are
Meet the team behind Felsaris and learn more about the values that guide our work, from engineering excellence to true partnership.
Our promise
From proof of concept and product development to AI-powered optimization, we accelerate innovation, make complex engineering challenges tangible, and deliver efficient solutions for sustainable technologies.
Why Felsaris

Experience that counts

Who we are

Our promise​

What makes us different

Who we are

Meet the team behind Felsaris and learn more about the values that guide our work, from engineering excellence to true partnership.
About Us

Our promise​

From proof of concept and product development to AI-powered optimization, we accelerate innovation, make complex engineering challenges tangible, and deliver efficient solutions for sustainable technologies.
Explore our customer success stories

What makes us different

Startups and SMEs value our hands-on mindset, fast execution, and close collaboration. We don’t see ourselves as a traditional service provider, we become part of your innovation team, with clear ownership and a dedicated point of contact.
As part of our innovation consulting, we help structure R&D projects in a systematic and compliant way, supporting successful R&D tax incentive advisory processes.

Why choose Felsaris as your partner for the research allowance (Forschungszulage)?

Our Experience: Engineering and Funding Consultancy Combined

We take care of:
Your advantage:

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Ready to secure your Research Allowance?

Get a personalized assessment of your Research Allowance (Forschungszulage) potential and find out how much funding your company may qualify for. We support you from initial eligibility check to successful application.

Alexander Lohberg

Technical funding advisor

Ready to secure your Research Allowance?

Get a personalized assessment of your Research Allowance (Forschungszulage) potential and find out how much funding your company may qualify for. We support you from initial eligibility check to successful application.

Check Your Funding Potential for Free

We assess your funding potential individually and show you how to make the most of the Research Allowance. From the initial evaluation to the successful application, we guide you step by step throughout the entire process.

Frequently Asked Questions

Since March 28, 2024, the annual assessment base has been increased to up to EUR 10 million. This results in a maximum R&D tax allowance of EUR 2.5 million at 25% (non-SMEs) or EUR 3.5 million for SMEs at 35% (including the SME bonus of +10 percentage points).From January 1, 2026, the assessment base will increase to EUR 12 million. This allows a maximum R&D tax allowance per fiscal year of EUR 3.0 million (25%) or EUR 4.2 million (35% for SMEs).

Eligible costs include, among others, R&D personnel costs (gross wages and salaries), 70% of contract research costs incurred within the EU/EEA, and depreciation of certain movable assets, provided they are required for the R&D project.From 2026 onwards, an additional flat-rate allowance for overhead and operating costs of 20% of the other eligible expenses can be claimed, provided the project starts after December 31, 2025.

Own services are calculated using an hourly flat rate. From 2026, this rate amounts to EUR 100 per hour, limited to a maximum of 40 working hours per week.This applies to activities started or performed after December 31, 2025, even if the R&D project itself began earlier.

The application to the tax office is submitted on a fiscal-year basis and only after the end of the respective fiscal year. For multi-year R&D projects, an application must therefore be submitted separately for each fiscal year.The BSFZ certificate, however, does not need to be applied for annually. It is valid for the fiscal years specified in the application, provided that the underlying facts and circumstances do not change.

The application to the tax office can be submitted up to four years after the end of the respective fiscal year.Important: Even though the tax office application may be filed later, the application for the BSFZ certificate must also be submitted within this four-year period. Otherwise, claiming the R&D tax allowance for that fiscal year is effectively excluded.

Yes. In principle, the R&D tax allowance is industry-neutral and therefore also available to companies in the defense industry, provided that the project qualifies as eligible research and development.Decisive factors are the substantive R&D criteria and compliance with state aid regulations, including the exclusion of companies in difficulty. In addition, despite potentially high confidentiality requirements, the project description must remain technically assessable.

The R&D tax allowance is not paid out immediately after approval. Instead, it is fully offset against the next initial assessment of income tax or corporate income tax.Any surplus amount is refunded as an income tax or corporate tax refund, meaning the allowance can be used regardless of the company’s profit situation.From an economic perspective, the R&D tax allowance is a subsidy integrated into the tax procedure. Regarding the question of whether it is tax-free, the legal situation is not conclusively and legally certain according to the German Federal Court of Auditors. The Court assumes that the R&D tax allowance may generally be taxable as operating income.For the specific income tax treatment, a tax advisor should therefore determine the correct classification on a case-by-case basis.