Young growth companies: young innovative company status extended to SMEs spending 5-15% of costs on research

The 2024 Finance Act creates a new category of young innovative company, the 'young growth company': SMEs under eight years old whose research spending is between 5% and 15% of tax-deductible expenses can obtain the status if they meet economic performance indicators set by decree (Article 44 sexies-0 A 3° c of the General Tax Code). The status gives access to the social security and local tax exemptions of young innovative companies and to the higher tax reduction for investors. Their works, supplies and services are also deemed innovative for public innovation partnerships. The indicators were defined by Decree No. 2024-464 of 24 May 2024, in force from 1 June 2024.