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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ The scrapping of the cap of €16 million is especially interesting for larger companies, allowing them to centralize R&D expenditure without losing part of the tax credit. The limited administrative time gives especially new applicants a swift answer whether or not their expenses are eligible for the CIR. The results of the change in the CIR have been mixed. Because the incremental element was scrapped, start-ups and new entrants experienced the change rather negatively overall despite the simplification and the 50% incentive during the first year. This is due because new companies see a large growth in R&D-expenditures during their first decade of existence. However, the number of registrations for the CIR doubled in 2009 compared to 2008 and 53% of businesses increased their R&D thanks to the changes made to the CIR. It shows that simplification can be a large driver to attract new R&D investments. On the other hand, a mechanism that would have combined simplification while keeping the incremental component may have benefited new companies even more. IP/A/ITRE/ST/2009-11 & 12 72 PE 440.278PDF Image | Policy Department Renewable Technologies
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