Tax incentives for investments in research
The promotion of private investment in research and innovation is one of the objectives to be achieved by the administrations within the framework of the Europe 2020 strategy, which establishes that public spending on research and development must be increased in order to attract private investment.
In this sense, it is worth highlighting the current situation of the Balearic Islands, where investment in research by companies accounts for only 20% of the total, still far from the 55% state average that the Government has set as the objective of convergence.
In this context, it is necessary to publicize the actions related to the stimulation of innovation activities in companies and, in particular, those linked to tax incentives. Thus, the Government of the Balearic Islands wants to publicize the main characteristics of the way of financing tax deductions for research, development and technological innovation, as well as to present the measures and incentives that are being implemented from the autonomic scope to achieve a greater participation of the private sector in investments in R+D+I.
One of the most noteworthy measures is the implementation of these new tax incentives approved in the latest Budget Law, through which it is intended to encourage investment in science and innovative companies.
Current situation
Evolution of calls for support
In reference to the total budget of the calls for aid for R + D + i in the Balearic Islands, it should be noted that since 2014 the budget has been increased by more than 6,400,000 euros and it has reached 8,315. 000 million euros foreseen for this year 2018.
Likewise, with regard to the budget dedicated to the different lines of action of the Science, Technology and Innovation Plan, it is worth noticing the increase in the budget in general and especially the lines of action dedicated to tasks related to entrepreneurship, which practically doubled the previous year’s budget (2017).
To reflect the situation of the Balearic Islands, a series of initiatives were carried out to guide future actions. On the one hand, the entrepreneurial discovery process was carried out, with the involvement of the business sector and, on the other hand, a study was carried out on the relevance of the knowledge economy in the Balearic Islands. These two actions thus served to modify the RIS3, the Smart Specialization Strategy, to which new transformative emerging sectors with great potential are incorporated: biotechnology, marine sciences and cultural and creative industries.
As a result of this task, the Government has increased the calls within the lines of action of the Science, Technology and Innovation Plan and encourages the development of tax incentives for innovative companies and donations to Research.
New tax incentives for innovative companies and research: 25% for donations to research projects
Through these deductions, any individual who makes a financial contribution to a public research body or specific research project may deduct 25% of this donation in the Personal Income Tax, with a maximum deduction of 6,000 euros. Thus, for every 100 euros contributed in science, 25 will be returned through the declaration of income.
Other deductions:
- Deduction of 35% for recently created companies (up to 6,000 euros).
- Deduction of 50% for companies derived from a public research organization (up to 12,000 euros).
- Deductions in capitalizations applicable to investments made in innovative companies in the Balearic Islands (with the seal of innovative company granted by the Ministry of Economy).
Lines of impulse to the human capital
Human resources are the most important limiting factor for the creation, absorption and transformation of knowledge. In the Balearic Islands, it is still one of the weakest components of the science and technology system. For this reason, it is necessary to continue fostering on the training of R + D + i staff member and the incorporation of R + D + i workforce in both the public and private sectors.
In this sense, the Balearic Government has put into operation different actions aimed at the training of research personnel (R + D + i), with help for the staff training and mobility, as well as the incorporation into the companies of researchers and support technicians.
Thus, the Directorate General of Innovation and Research have also analyzed the actions that were already underway and has incorporated improvements and an increase in budget of new postdoctoral programs:
- Margalida Comes Postdoctoral program for young researchers.
- Vicenç Mut postdoctoral program for senior researchers.
- Felipe Bauçà program for the incorporation of postdoctoral employees in companies.
And, finally, within this same line of action have also been added two new predoctoral grants endowed with 430,000 euros.
Impulse lines / Consolidation of the scientific base
This line of action aims to consolidate the existing scientific base in the Balearic Islands, which has been demonstrating its excellence in recent years. However, it is important to move forward to national and international openings in order to be able to give better and wider support to the socio-economic demands of the society of the Balearic Islands.
Thus, in this line of action, two programs are defined:
Dynamization of resources:
- Creation and promotion of new R+D+I centers.
- Registration of groups.
- Special actions.
- Cooperating projects.
Infrastructures and technical scientific equipment:
- Research stations.
- Scientific R+D+I complex.
- Support for scientific and technological equipment.
It should be noted that, with regard to the consolidation of the scientific base, new cooperative projects financed with the sustainable tourism tax have been incorporated by the regional Government.
