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The R&D Tax Allowance is a federal public funding program in Germany available for start-ups and SMEs involved in innovative research and development projects. The program provides a tax credit for eligible R&D costs, which can be applied retroactively for up to 4 years
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The program funds R&D costs for developing innovative products or services that stand out from standard industry offerings. Eligible expenses include:
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Note: If no corporate or income tax is due, the grant will be paid directly to the company’s bank account.
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All expenses must be related to the main project for which the application is being submitted.
Criteria include the following:
Please find an example of a start-up optimizing small business deliveries with real-time traffic + weather data below:
| Criteria | Example: Start-up optimizing small business deliveries with real-time traffic + weather data |
|---|---|
| Novelty | Integrates real-time traffic and weather data, a new feature for local delivery optimization |
| Creativity | Designed specifically for small businesses, filling a gap in accessible logistics solutions |
| Uncertainty | Challenges in ensuring the algorithm accurately predicts delays from traffic and weather changes |
| Systematic Approach | Follows a structured process with development, small-scale testing, feedback collection, and gradual expansion |
| Reproducibility | Tested across multiple cities to ensure reliable performance in diverse conditions |