When a grant call fails: the same project through tax relief.
A development project did not pass the evaluation in a grant call. Alongside the appeal, we prepared plan B: tax relief for research and development, with no competition and no deadline. The client remains anonymous.
Published in November 2026.
grant requested for a 24-month project
less corporate tax by 2029, preliminary estimate
maximum project length under the tax relief
Why not apply to the same call again.
The call for process innovation in S3 areas awards funds in order of receipt. The €17.2 million allocation covers at most 38 projects at the maximum amount, and there were several times more applications. A new application would face the same competition and the same criterion that stopped the project.
Plan B: tax relief for research and development.
The relief has no competition and no ranking. The project is registered before work starts, and eligible development costs reduce the corporate tax base by 250 to 400% of their amount, depending on the type of research.
For this profitable company, a preliminary estimate based on its 2025 profit showed just under €400k less corporate tax by 2029.
| Grant call | R&D tax relief | |
|---|---|---|
| Award | competitive call, in order of receipt | no competition, register before work starts |
| Duration | up to 24 months | up to 36 months |
| Equipment | purchase of machinery and equipment | depreciation during the project only |
| Benefit | up to €450k in grants | lower corporate tax, here around €400k by 2029 |
| Key condition | SMEs in manufacturing, an S3 area | taxable profit and genuine R&D with uncertainty |
What changes in the budget.
- Equipment is not recognised at its purchase price, only through depreciation for the period and extent of its use on the project.
- Promotion, market research and training are not eligible costs.
- Development team salaries carry most of the budget, so timesheets start on day one.
- A longer project means a larger budget: 36 months carry more development costs than 24.
- If the deduction exceeds the profit in a given year, the difference becomes a tax loss carried forward for up to five years.
When plan B makes sense.
- The company is profitable or expects to be in the coming years.
- The project involves genuine development uncertainty, not just buying equipment.
- Work on the project has not started yet, because registration comes first.
- The team can keep timesheets per project.
Sources: Guidelines for applicants, call PK.1.3.11; Act on State Aid for Research and Development Projects (OG 64/18, 152/24); Corporate Income Tax Act, Articles 6 and 17. S3 call conditions - R&D tax relief
The amount is a preliminary estimate for one client. The benefit depends on profit, the tax rate, recognised costs and legal limits. All news →
Project rejected: let’s check plan B.
Tell us what happened with the application. In 15 minutes we’ll tell you whether an appeal, a new application or tax relief makes sense.
€9M+ in funding approved on Vemar projects