Catalyst Solutions Europe

Are you interested in taking advantage of the many government incentives available for R&D and Capital investments (CAPEX) in Europe – but can’t afford your research or finance team to spend weeks writing applications that might end up being rejected? There’s another way.

Navigating the European public funding jungle

Public funding is an attractive way for industrial and technology-focused companies to offset some of their Research and Development (R&D) costs, as well as reduce the financial burden of large CAPEX-type investments. Leveraged properly, the complex administrative structure in place in Europe offers unprecedented opportunities for firms to maximize the level of government aid they can claim for their expenditures.

However, navigating the incentives on offer can be daunting. In the European Union alone, specific knowledge of local programs must be complemented by a thorough understanding and constant monitoring of EU calls for proposals – it’s a time and resource-intensive activity that does not even guarantee success at the end. Finally, eligibility rules and requirements not only vary from country to country, but also from one program to the next, resulting in missed opportunities of funding expenses that would have been eligible for a grant.

Who can benefit from government incentives? And what expenses are eligible?

Companies that are developing new products or processes, or improving existing ones are in a good position to claim innovation incentives for their expenses. Most of the time, qualifying expenditures include: R&D personnel costs, material costs, amortization of assets used in relation to supported R&D activities, (sub)contracted research costs, as well as overhead costs.

With regards to CAPEX incentives, governments usually recognize the strategic value of large investments such as the extension of a production facility, or the remodelling of a production line, especially if this includes the creation of additional jobs. Most funding agencies will also provide support for the purchase of energy-efficient or “green” assets, such as solar panels, biomass heating systems or roofing insulation.

What kind of incentives are available?

There are two main types of incentives available to businesses: tax and cash benefits. The incentive value varies from program to program and often depends on company size, and whether it qualifies as a Small or Medium Sized Enterprise (SME) or not.

Most of the time, local programs cover up to 50% of eligible project costs, with higher rates for SMEs. EU programs can support up to 100% of eligible project costs. Grants can be disbursed before or after the actual project costs have been incurred.

Catalyst Solutions specializes in non-repayable cash grants. Those are usually awarded on a project/ investment basis. R&D-type grants might require the participation of other research or industrial entities, working together to solve an issue of common interest. Government grants are not limited to ground-breaking research but can also support applied development aimed at improving existing products or processes.

Your outsourced incentives team

Catalyst Solutions works with industrial and technology-driven companies as their extended public funding team, taking care of all incentive matters, whilst ensuring that the claim process minimizes disruption to their business. Thanks to our extensive knowledge of local, national and EU support schemes, we are able to review your project pipeline and match your planned investments with the most relevant incentive programs available. Our team is composed of engineers, chartered accountants, tax and legal specialists and has gained an extensive experience assisting companies across all industries access R&D and CAPEX grants.

We work with clients to draft the funding application and provide robust support all the way through the allocation of the funds and subsequent reporting to granting authorities. A typical engagement will include the following steps:

  • Provide a qualified assessment of the incentives applicable to specific investments you are planning;
  • Identify both the ‘obvious’ and the ‘non-obvious’ activities that are eligible for government support;
  • Prepare all necessary documentation to maximize the chances of success;
  • Follow up with funding authorities before and after the incentive has been allocated.

Catalyst Solutions is a specialist consultancy that offers a focused, efficient and value adding service offering. Our team has qualifications in science, IT, engineering, accounting and law, as well as experience in assisting companies across all industries to access the Incentive. We leverage off our multidisciplinary skill set to ensure that our clients maximize their legitimate entitlement to the government funding, whilst ensuring that the claim process minimizes disruption to their business.

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Get in touch with us

If you are developing new products or processes, or improving existing ones, as well as planning major CAPEX investments, the Catalyst Solutions offering can help you streamline and optimize your incentive claims. Get in touch with Stephane B. Hoffmann on +49 30 2241 2948 or at shoffmann@catalystsolutions.eu to discuss further.