Tax research promotion: an important milestone in German innovation policy

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The introduction of tax incentives for research marks an important milestone in German innovation policy.

"Seemingly endless political discussions and washes are finally coming to a deserved end", emphasizes Hartmut Rauen, Deputy Managing Director of the VDMA, on the occasion of the expected passing of a corresponding bill in the German Bundestag. But good things can still be better in perspective. "Even for mid-range companies, i.e. companies with 250 to around 3,000 employees, the majority of R&D activities are not funded.

"Now it is time for a practical and low-bureaucracy implementation."

The instrument must pass the practical check
"Now a practical and bureaucracy-free implementation must also succeed," underlines Dr. Ralph Wiechers, head of the VDMA's tax department. "Only if this instrument reaches small and medium-sized industrial enterprises in the best possible way could additional growth and employment be achieved. "Against this background, we will constructively accompany the implementation, which must now follow on its heels, and continuously subject it to a 'practical check'," announced Wiechers. "The instrument must arrive in the companies and be manageable."