The measure consists of R&D tax advantages and aims at enhancing business R&D activity. Specifically, the aid is expected to increase private spending in R&D&I, with a focus on SMEs, and to improve innovativeness and competitiveness of both beneficiaries and non-beneficiaries (via spill-over effects). The aid scheme provides support in the form of tax advantages to the R&D activity of undertakings of all sizes, where eligible costs are only personnel costs and costs for research services. The aid is granted with an aid intensity of 25% and was originally limited to a maximum amount of eligible costs of EUR 2 million per undertaking per fiscal year. In response to the COVID-19 crisis, the maximum yearly tax base per undertaking was increased to EUR 4 million for eligible costs incurred in the period 30 June 2020 to 01 July 2026.
