First of all, let's remember that the Finance Law for 2022, extends the ITC to December 31, 2024 instead of December 31, 2022.
ITC: what about expenses incurred in 2023 and 2024?
For expenditures incurred in calendar years 2023 and 2024, the calculation of the innovation tax credit is modified in order to bring it in line with European legislation.
Operating expenses and ITC: no more!
Previously, operating expenses (a lump sum of 75% of depreciation expenses and 43% of personnel expenses) were an integral part of the ITC calculation. Starting in 2023: these expenses are eliminated.
Evolution of the ITC rate
The 2023 and 2024 innovation tax credit rate is now set at 30% instead of 20%.
Special case of DOM (overseas departments): the rate of the innovation tax credit for companies located in the DOM is set at 60% instead of 40%.
For facilities located in Corsica, the ITC rate is unchanged 40% for small businesses and 35% for medium businesses.
Evolution of the ITC cap
The maximum amount of eligible expenses retained remains fixed at 400 000 €. The maximum innovation tax credit from 80,000 to 120 000 € per year.
