R&D and Government Incentives Newsletter - June 2013
Issue No. 3
The Patent Box has been introduced as part of the initiative to make the UK corporate tax system the most competitive in the G20. Its aim is to encourage innovation in the UK as from 1 April 2013, a key benefit of the UK Patent Box is a lower effective rate of corporation tax on profits attributable to certain UK or European patents – by 2017 the tax rate for such profits will be as low as 10%.
Who can benefit?
The Patent Box will be applicable to all companies holding qualifying IP rights (QIPR) or an exclusive licence in respect of a QIPR, regardless of their industry.
Whether a company holds QIPRs – and is therefore ‘in the Box’ – is the first question to answer. This depends on the following:
- Does the company own a patent or equivalent, granted by the UK Intellectual Property office, the European Patent Office, or by a national patent office in one of the following countries in the EEA: Austria, Bulgaria, Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Poland, Portugal, Romania Slovakia or Sweden?
- Does it hold an exclusive licence, including intragroup when the patent is owned by another group company, over a patent granted by one of the above mentioned patent offices in at least a national territory?
- Has the company or another group company, regardless of its location worldwide, significantly contributed to the patented invention or the development of the product incorporating it?
- For companies in a group, can the company demonstrate that it is actively managing the exploitation of the patent or the exclusive licence?
One valid patent or exclusive licence is enough to qualify for the Patent Box.
To benefit from Patent Box, we recommend that companies:
- Identify whether they can get ‘in the Box’, through analysis of their patent and licence portfolio.
- Work through the guidance issued by HMRC around creating a methodology for quantifying QIPR turnover.
- Consider what other steps may need to be taken to increase the benefit of the UK Patent Box, for example moving of activities related to patentable technology into the UK.
LIFE+ is the European Union’s financial instrument for supporting environmental and nature conservation projects. LIFE+ consists of three thematic components: LIFE+ Nature & Biodiversity, LIFE+ Environment Policy & Governance and LIFE+ Information & Communication.
LIFE+ Environment Policy & Governance supports innovation or demonstration projects contributing to the development of innovative technologies, methods, instruments and policy approaches focusing on 12 priority areas: climate change, water, air, soil, urban environment, noise, chemicals, environment and health, natural resources and waste, forests, innovative technologies, and strategic approaches.
Type of projects
Demonstration project: puts into practice, tests, evaluates and disseminates actions/methodologies that are to some degree new or unfamiliar in the project's specific context (geographical, environmental, socio-economical...), and that should be more widely applied elsewhere under similar circumstances.
Innovation project: applies a technique or method that has not been applied/tested before or elsewhere and that offers potential environmental advantages compared to current best practice. Innovations can refer to technological innovations and/or to innovations in processes or methods.
LIFE+ covers a limited part of the research activities related to the project's objectives but the technology/process to be used for demonstration purposes should be clearly defined and technologically proven at the application stage.
Who can apply?
LIFE+ is open to all legal entities, public or private, commercial or non-commercial that are legally established in the European Union. Project proposals can either be submitted by a single beneficiary or by a consortium.
The maximum rate of co-financing is 50% of the total eligible project costs. There is no fixed minimum size for project budgets, but the European Commission favours the co-financing of large, ambitious LIFE+ proposals with a substantial budget. Historically, the average grant awarded has been in excess of 1 million euro.
25 June 2013.
Eco-innovation is an EU funding programme which helps bring innovative environmentally friendly technologies, products and processes to market.
The main focus of the programme is to reduce environmental impact, increase recycling and promote resource efficiency through supporting post-research activities in five main areas:
- Materials Recycling
- Sustainable Building Products
- Food and Drink Sector
- Greening businesses
Type of projects
First application or market replication of eco-innovative techniques, products, processes, or practices, which have already been technically demonstrated with success but which, owing to residual risk, have not yet penetrated the market. The aim of the project should be to foster their diffusion and broader uptake e.g. through demonstration in combination with publicity measures.
Research activities (incl. development of prototype) are not eligible.
Who can apply?
Eco-innovation is open to all legal persons, public or private, commercial or non-commercial that are legally established in the European Union or associated to the programme (1). Project proposals can be submitted by a single beneficiary or by a consortium.
The maximum rate of co-financing is 50% of eligible project costs. The maximum duration of a funded project is 36 months. Historically, the average grant awarded has been around 800,000 euro.
05 September 2013.
(1) Norway, Iceland, Liechtenstein, Albania, Croatia, former Yugoslav Republic of Macedonia, Israel, Montenegro, Serbia and Turkey
Sustainable Industry Low Carbon scheme (SILC) I
Sustainable Industry Low Carbon (SILC) is an EU grant scheme that aims at finding technological and non-technological innovation measures which would allow energy intensive manufacturing and process industries to reduce the GHG emissions of their production processes while maintaining their competitiveness.
Type of projects
SILC I (2011-2013) aims at finding technological and non-technological innovation measures to reduce the carbon-intensity that can be implemented in the short term (i.e. immediate to 3 year horizon).
SILC II (2014-2020) will focus on spurring further progress on promising measures, including possible breakthrough solutions that typically require pilot or demonstration programmes and validation prior to their industrial implementation (time horizon for implementation: more than 3 years).
Maximum budget allocated for EU financing under this call: € 2.850.000
Maximum EU financing rate of eligible costs: 75%
Maximum EU financing amount per project: € 950 000
Applications from legal entities established in one of the following countries are eligible:
- EU Member States
Iceland, Liechtenstein, Norway, Croatia, the former Yugoslav Republic of Macedonia and Turkey, Albania, Montenegro and Serbia, Israel
- Each SILC I project must be carried out by a consortium of at least 2 legal entities.
Eligible activities are any refining, production or manufacturing activities which are listed in Annex I of the EU ETS Directive, excluding the production of electricity, and which are carried out in installations exceeding the capacity thresholds specified therein.
Illustrative examples of technological innovation measures:
- Enhancing the efficiency of mature and/or available techniques, improving newly matured technologies
- Recovering waste heat which is reused in the process
- Developing energy recovery systems which reduce the use of primary fuels in a process
Illustrative examples of non-technological innovation measures:
- Developing and deploying expert systems for increasing knowledge and competences, optimising systems, logistics or organisations
- Compiling and disseminating best practice measures, based on mapping of technological or non-technological options for process improvements in companies
- Developing and deploying educational tools that promote the use of performing and/or state of the art technologies, including initiatives to help minimising existing geographical discrepancies in GHG emission performance within the EU
Indicative start-up date for the action: November/December 2013
Maximum duration of action: 36 months
Typical duration of SILC I projects: 12 - 24 months
13 June 2013.
Marco Polo II
Marco Polo is the EU funding programme for freight transporters, shippers and logistic operators that are committed to the sustainable transport of goods across Europe. Marco Polo pursues the reduction of congestion on Europe's roads by shifting freight off the road to more environmentally friendly modes of transport, such as short-sea shipping, rail and inland waterways.
Type of projects
Marco Polo co-funds direct modal-shift or traffic avoidance projects and projects providing supporting services which enable freight to switch from road to other modes efficiently and profitably. There are five project categories:
- Modal Shift Actions (MOD): starting-up new freight transport services by rail, inland waterways, short sea or a combination of these modes or the significant enhancement of existing services. Objective is to shift as much freight as possible off the road;
- Catalyst Actions (CAT): launching innovative freight services or facilities of strategic European interest, causing a real breakthrough and offering solutions for structural market barriers;
- Motorways of the Sea (MOS): innovative actions aiming at large volume, high frequency intermodal services for freight transport by short sea shipping;
- Traffic Avoidance Actions (TAV): innovative actions aiming at increasing efficiency in international road freight transport through modifications in production and distribution (e.g. avoiding empty runs or improving supply chain logistics);
- Common Learning Actions (CLA): methods and procedures improving cooperation and sharing of know-how to promote multimodal solutions.
Maximum budget allocated for EU financing under this call: € 66.7 million
Maximum EU financing rate of eligible costs: 35% (50% for CLA)
Organizations eligible for funding are:
- Commercial enterprises (either privately or publicly owned), for example: transport companies, logistics companies, manufacturing companies;
- Based in the 27 EU Member States or in Croatia, Norway, Iceland and Liechtenstein.
Estimated date of notification of applications and start of contract negotiations: December 2013. Signature of contracts: First half of 2014.
23 August 2013.
For more information, please contact:
Deloitte R&D and Government Incentives
Tel: + 32 2 600 65 74
For further information, visit the R&D and Government Incentives page on www.deloitte.be