January 2, 2025

Amendments to the Act on State Aid for Research and Development Projects

The amendments to the Act on State Aid for Research and Development Projects (OG, 152/24) have come into force.

The amendments to the Act on State Aid for Research and Development Projects (OG, 152/24) have come into force. These amendments provide for:
– A doubling of the reduction of the tax base (higher amounts of aid) compared to previous provisions:
• 400% of eligible costs for basic research (previously 200%)
• 300% of eligible costs for industrial research (previously 150%)
• 250% of eligible costs for experimental development (previously 125%)
• 300% of eligible costs for feasibility studies (previously 150%).
– Simplified applications and reporting of personnel costs as an administrative reduction in preparation and implementation.
– Extension of the deadline (until January 31 of the current year) for the submission of the annual report by users based on which subsidies are approved, thereby avoiding potential alterations in tax returns.
– Increase in maximum funding thresholds:
• For basic research: up to €55 million per entrepreneur per project (previously €40 million).
• For industrial research: up to €35 million per entrepreneur per project (previously €20 million).
• For experimental development: up to €25 million per entrepreneur per project (previously €15 million).
• For feasibility studies: up to €8.25 million per study (previously €7.5 million).
Additional options for increasing the intensity of aid included for supported regions: Adriatic Croatia, Pannonian Croatia, Northern Croatia 15%, City of Zagreb 5%.
Expanded definitions of research categories (including digital).