Forschungszulage – Criteria & Requirements at a Glance

For many companies, the Forschungszulage is an attractive tool for tax-based funding of research and development (R&D). However, not every project is automatically eligible. What counts are the legally defined criteria applied by the Bescheinigungsstelle Forschungszulage (BSFZ) when deciding whether a project qualifies.

In this article, we explain in detail which requirements must be met, how the review process works, and which aspects are particularly important in practice.

Basic Principle of Eligibility

The Forschungszulagengesetz (FZulG)  ties funding to clearly defined substantive requirements. Only activities that fall into one of the three legally recognized R&D categories are eligible:

1. Basic research
   Experimental or theoretical work to gain new scientific or technical knowledge without immediate commercial application.
2. Industrial research
   Targeted research to develop new products, processes, or services, or to significantly improve existing solutions.
3. Experimental development
   Systematic work based on existing knowledge with the aim of developing new or improved products, processes, or services.

Key Eligibility Criteria

To qualify under one of these categories, a project must meet certain requirements, as outlined in the OECD’s Frascati Manual:

1. Novelty
   The project must generate new knowledge or apply existing knowledge in a new context. Examples include:
   • Developing something that does not yet exist in this form.
   • Significantly advancing existing processes or products.
2. Technical or scientific uncertainty
   The outcome must not be predictable in advance. Projects are eligible if they involve overcoming technical, methodological, or scientific challenges.
3. Systematic approach
   The R&D activity must be planned, structured, and documented. A clear project plan with defined objectives, methods, and work packages is required. For further information, see our blog article on documentation requirements for the Forschungszulage. For further information, see our blog article on documentation requirements for the Forschungszulage.
4. Knowledge gain
   The project must create new knowledge or substantially extend existing knowledge. Importantly, success is not required – even unsuccessful research attempts can qualify.

Typical Exclusion Criteria

Some activities are explicitly excluded, even if they may seem technically demanding. These include:

• Routine or standard testing without research character
• Adjustments to existing products without significant innovation
• Pure market or economic studies
• Quality control within serial production
• Work focused exclusively on aesthetic design

The Role of the BSFZ

The BSFZ assesses applications on behalf of the Federal Ministry of Education and Research (BMBF) . It is a joint initiative of three institutions:

• VDI Technologiezentrum GmbH
• DLR Projektträger
• AiF Projekt GmbH

Its task is to independently determine whether a project meets the substantive criteria of the FZulG.

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Review Process

1. Application via the BSFZ portal
   Companies submit a detailed project description outlining the technical or scientific challenges and the innovative content.
2. Eligibility Review
   The BSFZ evaluates whether the project fits into the R&D categories and meets the relevant criteria.
3. Certification
   If the result is positive, the BSFZ issues a certificate, which is required to apply for the Forschungszulage at the tax office.

Important: The BSFZ reviews only the content-related eligibility of the project – not the costs or tax aspects.

Requirements for the Project Description

A precise, technically sound description is crucial for approval. It is recommended to present the following points in a structured manner:

• Initial situation and motivation for the project
• Technical or scientific challenges
• Detailed objectives
• Planned methodological approach
• Expected knowledge gain
• Clear distinction from routine activities

Formulations should be technical and scientific in nature. Marketing or sales-oriented language is irrelevant to the BSFZ and can weaken the application.

Timing

• A BSFZ certificate can be requested before, during, or after a project.
• Multiple projects can be submitted in parallel.
• The certificate applies for the entire project duration but must be updated if the project scope changes.

Common Mistakes in Applications

In practice, certain recurring mistakes often lead to delays or rejections:

• Insufficient distinction from non-eligible activities
• Mixing market arguments with research arguments
• Vague description of technical uncertainty
• Lack of documentation of the planned approach

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More information on the documentation requirements for the Forschungszulage can be found in our blog article Forschungszulage: Proper Documentation for the Application.

More Funding. Less Effort.

The Forschungszulage offers significant financial advantages, but only if the eligibility criteria are clearly met. Since the BSFZ reviews only the scientific and technical aspects, a well-structured and precise project description is key to approval.

At DnA Ventures, we know the requirements, criteria, and documentation standards – and we support you through the process. With proven expertise and structured methods, we make sure your Forschungszulage is approved quickly.

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

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Let’s find out!

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