The adoption of the 2026 Social Security Financing Bill by lawmakers in its second reading has reignited the debate on changes to the Young Innovative Company (JEI) scheme. The issues at stake concern both the level of R&D requirements and the extension of the scheme, while the parliamentary process continues and could still change the framework applicable in 2026.
Adoption at second reading, but outcome still uncertain
Tuesday, December 9, 2025 marks an important milestone in the allocation of the social security budget for 2026. Members of Parliament have adopted at second reading The Social Security Financing Bill, which focuses in particular on support for innovative start-ups.
An outcome still hanging in the balance of parliamentary proceedings
Neither the 2026 Social Security Financing Bill nor the 2026 Budget Bill have been definitively adopted at this stage.. The PLFSS is being examined in its final reading in the Senate, as part of the end-of-year parliamentary procedure, and may still be subject to adjustments.
The 2026 draft finance bill is currently being discussed by a joint committee tasked with finding a compromise between representatives of the National Assembly and the Senate.
Minimum R&D rate increase ruled out
Since October 14, members of parliament and senators have been engaged in intense discussions about measures affecting innovation policy. The government proposed raising the minimum share of research and development expenditure in a company's expenses from 20% to 25% in order to qualify for the JEI status, in order to focus more on companies that invest heavily in R&D.
This proposal was rejected by both chambers, which considered, in particular, that the intensity criterion had already been tightened recently as part of the 2025 Finance Act. This rejection reflects the desire not to further reduce the pool of eligible companies, in a context where the region's attractiveness in terms of innovation remains a key issue.
Reminder: a far-reaching reform already implemented by the 2024 Finance Act
As a reminder, the Finance Act for 2024 had already significantly overhauled the JEI regime. The text had reserved the benefit of tax breaks (particularly in terms of income tax) for companies created before January 1, 2007.er January 2024.
At the same time, exemptions from employer social security contributions for R&D staff remained open to all companies meeting the eligibility criteria for JEI status, with no restriction on the date of creation.
Towards an extension of the JEI regime until 2028?
Beyond the level of R&D requirements, discussions also focus on the lifespan of the scheme. As part of the 2026 Finance Bill, the Senate adopted amendments aimed at extending the JEI scheme for three additional years, until December 31, 2028. This extension aims to offer greater visibility to economic actors, particularly young companies engaged in long development cycles.
If this policy is confirmed, companies created on or after January 1er January 2026 could once again be eligible for JEI status, provided they meet the eligibility criteria. The challenge is to secure a stable framework for investment in R&D.
A JEI framework still in flux
The PLFSS and PLF 2026 are still under review, and the final decisions will determine the actual changes to the JEI regime in 2026. In a context of strategic tax incentives for R&D, companies must remain attentive to the latest parliamentary adjustments.
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