Paris, December 17th, 2007 – France’s research tax credit is now the best in the Europe, following a recent reform that raised it from 10% to 30% of yearly R&D expenses, up to €100 million. Beyond the maximum limit, a rate of 5% is applied, and the previous €16 million limit no longer applies. “This measure proves France’s commitment to increasing innovation. Many companies – both French and foreign – will benefit from this important incentive, which will also help attract major researchoriented businesses in France,” says Philippe Favre, President of the Invest in France Agency. For companies that have not yet taken advantage of the research tax credit or those who have not used it in the past 5 years, the tax credit is calculated based on 50% of expenses for the first year and 40% for the second year. The budget resources dedicated to the research tax credit are expected to triple by 2012. The new, more advantageous tax credit aims to drive economic growth by encouraging businesses to further increase their research and development. Currently, around 35% of French companies that conduct research are missing out on the tax credit, according to a survey done by the consultant group LowendalMasaï. The Comité Richelieu, a French association for innovative small-and-medium sized enterprises, adds that 89% of its associated companies support the reform. The new research tax credit will also help international companies within France’s competitive clusters: Thales Group, the world leader for aerospace, defense and security information systems, is a leading partner in several of France’s competitive clusters that invests 18% of its turnover (or €2.2 billion per year) into R&D activities. With the revised tax credit, Thales will be able to intensify its funding and its partnerships with public organizations and SMEs within cluster networks to launch additional innovative research projects.
Invest in France Agency (IFA) promotes and facilitates international investment in France. The IFA network operates worldwide, with offices in France, as well as in North America, Asia and Europe. IFA works in partnership with regional development agencies to offer international investors business opportunities and customized services all over France. For more information, please visit www.investinfrance.org
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