CIR and prototypes: are depreciations still eligible?

July 16, 2025

A recent ruling clarifies the expenses eligible for the research tax credit (CIR). Can depreciation allowances for prototypes be considered as expenses eligible for the CIR?

Legal context: a recurring question about the eligibility of prototypes for the CIR

The judges of the Douai Administrative Court of Appeal had to rule on the eligibility of depreciation linked to prototypes in the CIR.

In a recent ruling (CAA de DOUAI, 4ème chambre, 19 juin 2025, 24DA01095, Inédit au recueil Lebon), they indicated that the CIR applies to expenses corresponding to depreciation of fixed assets used to carry out research operations, in particular those contributing to the design of a prototype, but is not open to depreciation of the prototype itself, considered as the final result of the research.

Analysis of the Douai Administrative Court of Appeal ruling

Dispute over depreciation of prototypes

A company declared CIR and requested reimbursement. The tax authorities refused to reimburse the portion relating to the depreciation of prototypes, deeming them ineligible for the CIR. The TA de Rouen rejected the claim, and the company appealed to the CAA de Douai.

The CAA Douai confirms the position of the administration and the TA of Rouen:

Only the depreciation of fixed assets used to design prototypes is eligible for the CIR. (article 244 quater B II-a of the CGI).
Depreciation of the prototype itself, as the end result of research or experimental development, is not eligible..
Thus, even if prototypes have been manufactured from new, capitalized components, they are not eligible for the CIR once they have been built.

A clear position on the notion of the end result of research

The court draws an essential distinction between :

Fixed assets used to carry out research operations (e.g. machines, laboratory equipment).
And the prototypes themselvesThese are the results of research, not the tools used to carry it out.

Our tax experts' analysis of eligible fixed assets

The prototype: a result, not a research tool

According to the judges of the Administrative Court of Appeal, only fixed assets directly used to carry out research are eligible for the CIR.

They believe that prototypes, even immobilized ones, are not immobilized if they are not used for other research, but are themselves the object of research.
So, companies that include depreciation of prototypes in their CIR base run the risk of a tax reassessment in light of this decision.

Points to watch: what to distinguish in declared expenses

Even if the components used to create a prototype are purchased new and capitalized, a distinction must be made between :

Parts and equipment used during research (eligible)
The final prototype (not eligible)

Best practices for securing your CIR return

For a company benefiting from the CIR and wishing to comply with this position, it will be necessary to :

Clearly identify fixed assets used for research (machines, software, test benches...),
Justify their direct use in R&D operations,
Exclude depreciation relative :

- To final prototypes
- Pilot plants once completed and tested

Avoid :

Include the depreciation of a prototype in the CIR if it is the object of the project, even if it has been capitalized.
Indiscriminate inclusion of depreciation allowances without justification for their use in R&D.

The decision imposes a increased vigilance in the assembly and justification of CIR claimsIf you don't, your application will be rejected in whole or in part, and you will be liable to a dispute with the authorities.