Reform of the research tax credit: 5% volume share and 45% increment share

Article 87 of the 2004 Finance Act reforms the research tax credit (Article 244 quater B of the General Tax Code): it consists of a volume share equal to 5% of the year's research spending and an increment share equal to 45% of the difference between that spending and the inflation-adjusted average of the two previous years. The ceiling per company rises from €6.1 million to €8 million. New companies and companies in receivership or liquidation can obtain a refund of their claim. The scheme applies to spending from 1 January 2004.