How does the Forschungszulage application process work?

The application is a two-step process: First, a certificate for the FuE project is requested from the certification body Bescheinigungsstelle Forschungszulage (BSFZ). After receiving the certificate, the application for Forschungszulage is submitted to the responsible tax office via the ELSTER portal.

When can I apply for the Forschungszulage?

The application for a certificate at the BSFZ can be submitted before, during, or after the FuE project. The application at the tax office is always submitted after the end of the fiscal year in which the expenditures were incurred.

What do I need to prepare for the BSFZ application?

You need a precise project description with details on novelty, risks, timeline, involved employees, and costs. An ELSTER certificate for authentication is also required.

How is the application submitted to the BSFZ?

The application is submitted digitally via the BSFZ online portal. The identity of the company must be verified using an ELSTER certificate.

What information is required in the tax office application?

The application must include the eligible expenditures for the relevant fiscal year. In addition, details about the company and the FuE project must be provided. For multi-year projects, a separate application is required for each year.

Do I need to file a separate application for each FuE project?

At the BSFZ, multiple FuE projects can be combined in one application. At the tax office, the application is filed on a fiscal-year basis, meaning all projects of one year are covered in a single application.

How much time do I have to submit the application?

The deadline for retroactive applications is a maximum of four years after the end of the fiscal year in which the expenditures were incurred.

What happens if the FuE project changes after the certificate has been issued?

Material changes to the project must be reported to the BSFZ. A new certificate may be required to ensure continued eligibility for funding.

Which documents should I have ready for the application?

In addition to the project description, proof of expenditures, time records of employees, and any contracts for commissioned research are important.

Can I submit the application without a tax advisor?

Yes, it is generally possible to submit the application without a tax advisor. However, due to the complexity and documentation requirements, professional advice is recommended to avoid errors, secure approval, and maximize the funding amount.

Applying for Forschungszulage: The Application Process

TL;DR – Zusammenfassung

Der Prozess im Überblick

1Identification of FuE projects
2Application to the BSFZ
3Review by the BSFZ
4Issuance of the certificate
5Application at the tax office
6Review by the tax office
7Assessment notice
8Payout

Applying for the Forschungszulage follows a two-stage process consisting of an application to the Bescheinigungsstelle Forschungszulage (BSFZ) followed by an application to the tax office. The process covers identifying and documenting FuE projects, submitting the applications, assessment and approval, and disbursement of the funding.

Here you will find an overview of the entire process

Identification of FuE Projects

Before the actual application, you should:

Identify and document your FuE projects
Check eligibility based on the OECD criteria
Record the relevant expenditures (personnel costs, commissioned research, and where applicable capital expenditures)
Prepare a project description for each FuE project

Application to the BSFZ

The application to the BSFZ is submitted via a digital portal that requires authentication using an ELSTER certificate. Submitting the required project descriptions is a prerequisite for obtaining the so-called FuE certificate, which is mandatory for the application at the tax office.

Review by the BSFZ

The certification body examines whether the activities described in the application constitute research and development within the meaning of the Forschungszulagengesetz.

Issuance of the Certificate

The BSFZ certificate is binding for the tax office and applies exclusively to the specific project described.

After receiving the certificate, you submit the application for Forschungszulage to the responsible tax office:

Application at the Tax Office

The application for Forschungszulage is filed using an electronic application form on the online portal "Mein ELSTER". This form is the central document for the application. For multi-year FuE projects, the application for Forschungszulage must be submitted separately for each fiscal year. (Learn more about calculating the allowance).

Review by the Tax Office

The tax office may review the details of the Forschungszulage application for up to six years after submission.

Observe deadlines
The Forschungszulage can be claimed retroactively for up to four years. Deadlines for submission must be observed carefully, as missed deadlines can lead to rejection.

The tax office reviews:

The formal correctness of the application
The correct calculation of eligible expenditures
Compliance with the maximum assessment base
Compliance with state aid regulations

After successful review:

Receipt of the assessment notice for the Forschungszulage
Offset against the next due tax prepayment or direct payout

The Forschungszulage is not paid out immediately after assessment, but is fully offset against the income or corporate tax assessed at the next tax settlement. If this offset results in a surplus, it is paid out as an income or corporate tax refund. The Forschungszulage is disbursed as a tax credit together with the annual tax assessment notice, and is granted as a tax refund when no profits are available.

Source: Federal Ministry of Finance

Tax exemption
The Forschungszulage is treated as a tax rebate and is not itself subject to tax. It is available to all taxable companies with income from agriculture and forestry, commercial business, or self-employment. (See also Eligibility Requirements).

Criteria for the Forschungszulage

The criteria for the Forschungszulage are novelty, uncertainty, and systematic approach. There is a legal entitlement to the Forschungszulage when all criteria are met. Eligible are FuE projects that fall into one or more of the categories of basic research, industrial research, or experimental development. The Forschungszulage applies only to the specific projects described in the BSFZ certificate.

Funding Amount and Changes from 2026

The amount of the Forschungszulage depends on the eligible expenditures for the qualifying FuE projects. From 2026, the assessment base will increase to 12 million euros per year, the maximum funding amount for KMU will be raised to 4.2 million euros, and an overhead flat rate of 20 percent will automatically be applied to eligible personnel costs. In addition, the flat hourly rate for own contributions by sole proprietors and partners will increase to 100 euros per hour. From 1 January 2026, the application process will be significantly simplified as part of the federal government's immediate investment programme.

Important Notes on the Application

The information in the application must be precise and well-founded to secure approval. Inadequate execution or insufficient information can lead to rejection, as typically only one opportunity to provide a statement is permitted. (Read more about what to do if your application is rejected). Documentation of actual working hours is required for the application. The presentation of novelty and risks in the application is frequently criticized and should therefore be prepared with particular care. Throughout the project, all relevant information (project description, objectives, timeline, involved employees, costs) should be collected. Maintaining and processing documentation is essential within the application process.

External Presentation and Certification Seal

The successful execution and documentation of research and development projects is not only decisive for funding eligibility, but also for the company's external image. The BSFZ seal can be used as proof of innovation competence and strengthens external communication.

Practical Example

A typical example: A medium-sized company in the manufacturing sector develops a new, more efficient method for producing metal parts. The project involves adapting and optimising existing production processes as well as testing new materials. The company documents the project content, submits the application via the BSFZ portal, receives the FuE certificate after review, and then submits the application via the ELSTER portal to the tax office. After successful review, it receives the Forschungszulage as a tax credit or tax refund. This example illustrates that projects focused on process optimisation and materials development are also eligible, supporting a broad range of FuE activities.

Differences from Other Funding Programmes

Unlike traditional project funding (such as ZIM) or other funding programmes, the Forschungszulage is granted as a tax-based incentive, is open to all sectors, and can be applied for retroactively. Funding is paid out after the application has been submitted and reviewed.

Support and Advice

Support through advisory services can be decisive in the application process — to clarify frequently asked questions, make the right decision when project changes arise, and to meet the requirements of the Forschungszulagengesetz (FZulG).

Advantages of the Forschungszulage

The advantages include openness to all sectors, the possibility of retroactive application, the positive effect on innovation, and relevance for companies from agriculture and forestry. The execution and documentation of projects as well as the substantive presentation of the topic are decisive for funding eligibility.

Introduction to the Forschungszulage

The Forschungszulage is a central instrument of tax-based research funding in Germany. It is aimed at companies of all sizes and legal forms that invest in research and development (FuE). The goal of the Forschungszulage is to strengthen innovation capacity and make Germany a more attractive investment location. Companies can apply for the Forschungszulage both for their own research and development projects and for commissioned research. It does not matter whether these are start-ups, medium-sized businesses, or large corporations — what counts is engagement in research and development.

The funding takes the form of a tax credit that is offset against the next income or corporate tax assessment. This means that companies directly benefit from financial relief when they invest in innovative projects. The Forschungszulage can be applied for different types of FuE projects, including basic research, industrial research, and experimental development. It thus offers an attractive funding option for companies wishing to strengthen their competitiveness through research and development.

Eligibility Requirements for Funding

To successfully apply for the Forschungszulage, companies must meet certain requirements. First, it is necessary to carry out an eligible FuE project. This means the project must meet the criteria for research and development and include innovative, experimental, or scientific activities. The application follows a defined procedure in which compliance with deadlines is particularly important.

A central element is the certificate from the Bescheinigungsstelle Forschungszulage (BSFZ). This body examines whether the activities described in the application qualify as research and development within the meaning of the Forschungszulagengesetz (FZulG). Companies must provide all relevant information and documents to demonstrate the eligibility of their project. This includes, for example, a detailed project description, information on the planned research activities, and an overview of the planned expenditures. Only after successful review and issuance of the certificate by the BSFZ can the application for Forschungszulage be submitted to the tax office.

Bescheinigungsstelle Forschungszulage (BSFZ)

The central point of contact for the technical review is the Bescheinigungsstelle Forschungszulage (BSFZ).

The Bescheinigungsstelle Forschungszulage (BSFZ) is the central point of contact for companies that need a certificate for their FuE projects. As part of the application process, the BSFZ examines whether the activities described in the application qualify as research and development within the meaning of the Forschungszulagengesetz (FZulG). Only if this requirement is met can funding through the Forschungszulage be granted.

The application to the BSFZ is submitted digitally via the dedicated online portal. Companies must authenticate themselves with a valid ELSTER certificate to ensure the security and confidentiality of the information provided. The application includes all relevant information about the FuE project, including a detailed description of the planned research and development activities. The BSFZ carefully reviews this information and, upon positive assessment, issues a legally binding certificate. This certificate forms the basis for the further application for Forschungszulage at the tax office and is therefore a decisive step in the entire funding process.