R&D Eligible Costs: What and How Can Be Financed?
Implementing research and development (R&D) projects requires significant financial investment, which is why R&D funding opportunities can be a great help for companies and institutions. However, to account for a project’s R&D eligible costs under a grant or tax incentive, specific accounting and financing rules must be followed. Only those expenses directly related to the project, incurred during the project’s execution, and used exclusively for its implementation can be accounted for as eligible costs. Furthermore, if a project includes multiple activities, they must be classified into different R&D categories, such as applied research or experimental development, to determine the amount of eligible support. So, what R&D eligible costs can be determined exactly? Let’s take a look at the key categories: 1. Depreciation of Buildings and Infrastructure R&D projects often require specialized laboratories or other research facilities. The rent or depreciation of these buildings can be accounted for, but only to the extent they are actually used for the project. Example: A biotechnology company launches an R&D project to develop a new pharmaceutical product. The research takes place in ...
