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With the passing of the law on the research allowance by the German Bundestag in November, the foundation stone was laid for research tax credits in Germany. As reported by the Institute for Innovation and Technology (iit) , companies will be able to claim tax credits for personnel expenses in research and development (R&D) from 2020 onwards. There is already a research allowance calculator on the Internet that provides information on the prerequisites for funding and the possible amount. It is to be continuously adapted to the changes in legislation. The iit is also presenting background information on the new form of funding in an eight-page working paper .

According to the Federal Research Ministry , the lion’s share of R&D expenditure in Germany flows into research-intensive industries. This includes mechanical and automotive engineering as well as the chemical, pharmaceutical and electrical industries.