Forschungszulage from 2026 – Changes, Opportunities, and Strategic Planning

Since its introduction in 2020, the Forschungszulage has already gone through several adjustments to improve tax incentives for research and development (R&D) in Germany. Starting in 2026, further significant changes will take effect, particularly concerning the funding base, maximum allowance, and eligible costs.

In this article, we summarize the planned changes, explain their impact, and provide guidance on how companies can strategically prepare.

Background: Why the Changes?

The Forschungszulage was designed to strengthen Germany as an innovation hub. While adoption was initially slow, applications have increased significantly since 2022. At the same time, businesses and industry associations have long called for:

• Higher funding limits for large projects
• Broader eligibility of costs
• Simplification of the application process

In response, the current coalition government (CDU/CSU and SPD) agreed on an extensive package of measures, including improvements to the Forschungszulage.

Planned Changes at a Glance

1. Increase of the funding base
   • The eligible base will rise from €10 million to €12 million per year, making larger R&D projects more attractive.
   • Example: With a €12 million base, the maximum Forschungszulage will be €3 million annually (25%) or €4.2 million for SMEs (35%).
   Development of the funding base since 2020:
   • 01.01.2020 – 30.06.2020: €2 million
   • 01.07.2020 – 27.03.2024: €4 million
   • 28.03.2024 – 31.12.2025: €10 million
   • From 01.01.2026: €12 million
2. Extension of eligible expenses
   • In addition to personnel costs, companies will be able to claim a flat-rate allowance for overhead and operating costs of 20% within R&D projects.

Impact on Companies

Beyond offering concrete investment incentives and planning security, the updated Forschungszulage creates further advantages:

Larger funding potential

Companies with research-intensive programs will benefit most from the higher base, enabling significantly greater funding amounts.

Increased attractiveness

By including overhead and operating costs, the Forschungszulage becomes easier to access – particularly for SMEs. The flat-rate allowance simplifies applications, reduces documentation requirements, and improves funding conditions, for example by covering internal project management or material costs.

In addition to the Forschungszulage, the government’s investment stimulus program also provides for declining-balance depreciation on movable assets and a gradual reduction in corporate tax – further measures to encourage investment and improve the tax framework for businesses.

Opportunities for Different Company Sizes

• Start-ups and SMEs: Benefit mainly from the flat-rate inclusion of overhead and operating costs.
• Large corporations: Gain from the higher funding base and significantly larger absolute funding volumes for major R&D programs.

Strategic Preparation for 2026

1. Adapt project planning
   Review your R&D pipeline in 2025 to see whether projects can be scheduled so that cost-intensive phases fall into 2026 – maximizing the benefit from the higher base.
2. Early coordination with tax departments
   Since the Forschungszulage is claimed via the tax return, changes must be factored into tax planning in advance, particularly regarding liquidity planning and interaction with other funding programs.

More Funding. Less Effort.

From 2026, the Forschungszulage will become even more attractive: a higher funding base and extended cost eligibility will create better conditions for R&D in Germany. Companies that prepare early can significantly increase their funding potential and align costly project phases with the new rules.

At DnA Ventures, we support you throughout the process – from application to documentation. With proven expertise and established methods, we ensure your application meets all requirements and is approved quickly.

Curious how much funding your R&D projects could receive?

‍
Let’s find out!

‍

‍