Research Allowance 2026: A New Impulse for Innovation and Growth

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11/26/2025
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From 2026, the research allowance (“Forschungszulage”) will become significantly more attractive. Learn how to take advantage of tax incentives for research and development under the Research Allowance Act.

Companies conducting research have been able to benefit from a dedicated government research allowance since January 2020. Now, the Research Allowance Act (“Forschungszulagegesetz”, FZulG) is being amended again by the so-called Growth Booster Act (“Wachstumsboostergesetz”), which will come into force on January 1, 2026.

Thus, from 2026 onwards, the German research allowance (“Forschungszulage”) becomes significantly more attractive. For R&D projects starting on or after 1 January 2026, the following key improvements apply:

Increase of the assessment base (cap): from EUR 10 million to EUR 12 million
Maximum benefit of EUR 4.2 million at a funding rate of 35% for SMEs
20% overhead surcharge for in-house research
Eligibility of consumption costs

For your convenience, we have compiled an overview of the legal situation. In our brochure, you’ll find out how and under what conditions you can benefit from the research allowance for the different financial years.

How you can benefit from tax incentives for R&D

Baker-Tilly-Forschungszulagengesetz_FuE_en.pdf, 504 KB

Overview of the research allowance

We have compiled an overview of the legal framework so that you can find out how you can benefit from the research allowance for for your business.

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How we support you in applying for the research allowance

Together with our technology partner innoscripta GmbH, we support the entire funding process from the technical project description and the BSFZ certification through to the tax application stage.

Success through Early Strategic Alignment

Eligibility is determined long before the application is submitted: through clearly structured R&D projects, state-aid-compliant contract research, precise technical classification, and robust documentation and cost processes. Leveraging the technical and digital expertise of our partner, we integrate technology, tax and legal perspectives, laying the groundwork for a successful research allowance application.

Part of the New Funding Architecture

With the German government's infrastructure package, the demand for new technologies, processes and digital solutions is rising sharply. The research allowance plays a central role within this funding landscape: technology-neutral, permanently anchored and combinable without state-aid restrictions, making it highly versatile for transformation and infrastructure projects.

Our Added Value

We combine the research allowance with other transformation and infrastructure funding programs as well as suitable financing instruments to create an integrated overall strategy for your company. Instead of viewing individual elements in isolation, we align funding, financing and liquidity, providing your business with a clear competitive advantage.