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France

List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]
  • Incentives available for productive investment: Eg, PAT grants awarded by the Ministry for Rural Planning and Regional Development. (Max €15,000 per job created. 15% of the investment for large companies (35% for small companies))
  • Cash incentives for R&D activities:
  1. Government contributions may cover up to 50% of the total cost of large businesses conducting shared industrial R&D projects.
  2. Regional development grants for research, development and innovation -Max €15,000 for each job created in R&D projects or €25,000 per job in a cooperative project.
  3. Subsidies awarded by French Ministry (through competitive clusters for example) or public agency such as OSEO.
Tax exemptionsMore [+]Less [-]
  • Research tax credit that amounts to 30% of total yearly expenditure on research activities up to €100 million, and 5% of yearly expenditure above this level. The 30% rate rises to 50% and 40% in the first and second years, respectively, for first-time research tax credit applicants.
  • Local authorities can grant full or partial temporary exemptions from local tax (Max: 5 yrs or 15% of the investment realized over 3 yrs).
  • Businesses contributing to sustainable development and the preservation of the environment may benefit from tax breaks. Favorable tax measures apply to companies using equipment to produce renewable energy (e.g. wind turbines) or reduce energy consumption. Such equipment may be depreciated over 12 months instead of over useful lives, generally between 5 and 10 years.
  • Tax credits are available to cinematographic or audiovisual productions produced by companies based outside France. Tax credit amounts to 20% of expenditure in France, (Max 80% of the film’s total production budget or €4 million per film).
Property assistance / other fiscal incentiveMore [+]Less [-]
  • Local authorities can give construction assistance within the limit of 15% of the investment.
  • It is possible to study a property holding arrangement with the relevant local authorities.
  • Rent support is limited to €200,000 per business over three years (for large companies). This ceiling has been increased to €500,000 until the end of 2010 (local authorities).
Training and labor market assistanceMore [+]Less [-]
  • Professional and inter-professional organizations can provide technical and financial support covering 25% to 80% of training expenses.
  • The employment agency (pole employ) may provide support for initiatives providing up to 450 hours of practical training : the company can be awarded up to € 3600 per employee hired.
  • CIFRE (Convention Industrielle de Formation par la Recherche) contracts offer post-graduate students an opportunity to prepare their doctorate in the workplace, which receives an annual fixed grant of €14,000.
Loan guarantees, cheap loans or financeMore [+]Less [-]
  • OSEO guarantees commercial bank financing and private equity investors. The goal is to facilitate bank-credit or venture-capital financing of risky projects. OSEO supports bank lending by shouldering between 40% and 70% of the risk, with a simple rule – the riskier the project, the higher the share taken on by OSEO.
  • Some commercial banks provide loans designed to help companies finance activities which cannot be backed by hard assets: these loans, with differed amortization and provided without collateral, can bolster companies’ accounts by up to €3 million.
  • Up to €10 million can be allocated to R&D projects, either (1) grants of up to 50% of eligible expenses or (2) loans of up to 40% of eligible expenses (plus a 10% bonus in certain cases) for experimental development.
  • Another key initiative is the OSEO “innovative company” certification granted to promising firms which makes them eligible for investment from mutual funds to support innovation
  • Low Interest Loans for low carbon vehicles - Budget : 250 million Euros over 2 years (December 2010) of low interest loans by the French ministry of industry.
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. Higher education and training, research
  2. Industrial policy, sustainable development
  3. Digital economy
Sectors specific incentivesMore [+]Less [-]
  • Research and development activities.
  • Green technology : for example, measures to fasten the development of electric and hybrid electric vehicles.
  • Foreign film and audiovisual productions.
  • Tax credit for video games.

 

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