R&D tax credit Active
Crédit d'Impôt Innovation (CII)
A companion to the CIR for SMEs: a tax credit on innovation expenditure for the design/prototyping of new products (beyond pure R&D). Reserved for SMEs, on a capped expenditure base.
✓ 3 Jul 2026
Key parameters
| Rate | 20% of eligible innovation expenditure |
|---|---|
| Expenditure cap | €400,000 per year (→ max ~€80k credit) |
| Scope | Prototypes & pilot installations of new products (SMEs only) |
Eligibility
- HQ
- Any headquarters country
- Local presence
- Local tax presence required (branch is sufficient) A branch office (Zweigniederlassung/permanent establishment) of your existing company is enough — you do not need to form a new legal entity such as a GmbH or BV.
- R&D substance
- Required
- Company size
- SMEs only
- Models
- All
- Sectors
- All
- Goals
- Additional design site in Europe; Access to pilot lines & prototyping
SME under the EU definition; covers innovation (not just R&D) expenditure on new-product prototypes. Declared like the CIR.
Mechanism & application
Rule-based entitlement — Legal entitlement — self-assessment, no case-by-case funding decision.
Declaration-based with the corporate tax return (same 2069-A-SD form family as the CIR).
Timeline: Immediate (tax filing)
Legal basis & sources
- Legal basis
- Art. 244 quater B, II-k CGI
- Verification
- economie.gouv.fr / CGI Art. 244 quater B (CII 20%, cap €400k)
from 1 Jan 2013 until no expiry review 1 Jan 2027