R&D Tax Credit, ZIM, KMU-innovativ, EIC Accelerator: which program fits your project?
The difference is the legal entitlement: the R&D Tax Credit funds without competition and for every company size, 25 %, 35 % for SMEs of personnel costs. ZIM, KMU-innovativ and the EIC Accelerator instead decide individual applications through a competitive process.
- Funding rate 25 %, 35 % for SMEs, with legal entitlement (Section 4(1) FZulG)
- Assessment basis up to EUR 12 million a year, maximum EUR 4.2 million allowance for SMEs
- ZIM up to EUR 690,000; KMU-innovativ up to EUR 600,000; EIC Accelerator up to EUR 12.5 million
Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: · Law as of:
The right route for your project
Figures and details
ZIM, KMU-innovativ and the EIC Accelerator decide through a competitive process.
Key facts in brief
Four programs shape German and European R&D funding: the R&D Tax Credit, the Central Innovation Programme for SMEs (ZIM), KMU-innovativ from the BMBF, and the EIC Accelerator of the EU. Only the R&D Tax Credit offers a statutory legal entitlement, 25 %, 35 % for SMEs of personnel costs, regardless of industry or competition (Section 4(1) FZulG). ZIM funds individual projects through a competitive process with up to 45 % (up to 55 % for cooperation), KMU-innovativ with up to 50 %, and the EIC Accelerator combines a grant of up to EUR 2.5 million with an equity stake of up to EUR 10 million. All four can be combined, as long as the same costs are not funded twice (Section 7 FZulG).
The essentials compared
How do the R&D Tax Credit, ZIM, KMU-innovativ and EIC Accelerator differ in detail?
The R&D Tax Credit wins on legal entitlement and speed, the three competitive programs win on the funding rate for a single project.
| Criterion | R&D Tax Credit | ZIM | KMU-innovativ | EIC Accelerator |
|---|---|---|---|---|
| Legal entitlement | yes Yes, no competition | no No, competitive process | no No, competitive process | no No, competitive process |
| Timing of application | yes Retroactive, after the fiscal year ends | no Only before approval by the project sponsor AiF/VDI/VDE | no Only before approval by the BMBF specialist agency | no Only before approval by the European Commission (EISMEA) |
| Company size | yes Every size | partly SMEs only (fewer than 500 employees) | partly SMEs in defined technology fields only | partly Innovative SMEs only |
| Funding rate | 25%, 35% for SMEs | Up to 45% of project costs (up to 55% for cooperation) | Up to 50% | Grant plus equity stake |
| Assessment basis / cap | EUR 12 million assessment basis (Bemessungsgrundlage), max. EUR 4.2 million allowance | Max. EUR 690,000 (individual project) | Max. EUR 600,000 | Up to EUR 2.5 million grant plus up to EUR 10 million equity |
| Payout route | yes Offset against tax, the surplus is paid out | Project funding after approval by the project sponsor | Project funding after approval by the BMBF specialist agency | Non-repayable grant, optional equity stake |
| Time to decision | yes up to 3 months | 4-6 months | 4-8 months | 6-12 months |
| Combinability | yes With all three programs, as long as the same costs are not funded twice (Section 7 FZulG) | yes Yes, combinable with the R&D Tax Credit | yes Yes, combinable with the R&D Tax Credit | yes Yes, combinable with the R&D Tax Credit |
| Application effort | Moderate: BSFZ certificate plus tax office application | Application to the project sponsor with expert review | Application to the BMBF specialist agency | Multi-stage process at the European Commission |
| Proof-of-use obligations | BSFZ certificate plus cost documentation at the tax office | Proof of use after the project ends | Proof of use after the project ends | Reports throughout the project |
Which four programs apply to an R&D project?
Four programs shape the funding landscape: the R&D Tax Credit with legal entitlement, and three competitive programs each with their own target group and process.
| Program | Legal Entitlement | Timing of Application | Payout | Who It's For |
|---|---|---|---|---|
| R&D Tax Credit (FZulG) | yes Yes, no competitive process (Section 4(1) FZulG) | After the end of the fiscal year, retroactively from 2022 possible | Offset against the tax assessed, any surplus is paid out | Every company size and industry |
| ZIM | no No, competitive process | Before approval by the project sponsor AiF/VDI/VDE, processing time 4-6 months | Project funding after approval by the project sponsor | SMEs with fewer than 500 employees |
| KMU-innovativ | no No, competitive process | Before approval by the BMBF specialist agency, processing time 4-8 months | Project funding after approval by the BMBF specialist agency | SMEs in defined technology fields (e.g. biotechnology, medical technology, ICT) |
| EIC Accelerator | no No, competitive process | Before approval by the European Commission (EISMEA), processing time 6-12 months | Non-repayable grant plus optional equity stake, after approval | Innovative SMEs with international scaling potential |
The R&D Tax Credit's assessment basis has stood at EUR 12 million a year since 1 January 2026; for expenses in 2024 and 2025 it was EUR 10 million (Section 3(5) FZulG). Eligible costs and application routes of the other three programs are covered in detail on R&D Tax Credit vs. ZIM and R&D Tax Credit vs. EU funding.
Which program fits which situation?
The choice depends on company size, project type and timeframe: large enterprises rely on the R&D Tax Credit alone, SMEs usually combine it with a second program.
- Large enterprise: R&D Tax Credit alone. The only program with legal entitlement for every company size, no competition, checkable retroactively to 2022.
- SME with a defined R&D project: ZIM combined with the R&D Tax Credit. ZIM covers project costs up to EUR 690,000, the R&D Tax Credit the remaining, not ZIM-funded personnel costs.
- SME in a BMBF technology field: KMU-innovativ combined with the R&D Tax Credit. Funding up to EUR 600,000 for cutting-edge research, supplemented by the allowance for uncovered personnel costs.
- International scaling: EIC Accelerator combined with the R&D Tax Credit. Up to EUR 12.5 million (EUR 2.5 million grant plus up to EUR 10 million equity), the R&D Tax Credit runs in parallel nationally.
Why the R&D Tax Credit is checked first in every combination
The R&D Tax Credit carries no risk of rejection through competition, applies to every industry and company size, and can be checked retroactively to 2022. That is why it stands at the start of every funding strategy, even when ZIM, KMU-innovativ or the EIC Accelerator are added later.
Can the R&D Tax Credit be combined with ZIM or KMU-innovativ?
Yes, with one restriction: the same costs may not be funded twice (Section 7 FZulG).
In practice this means a clean split of cost positions: ZIM or KMU-innovativ fund the project costs claimed there; those costs are then removed from the R&D Tax Credit's assessment basis (Section 7 FZulG). Only the personnel costs not covered by that funding run through the R&D Tax Credit as well. A blanket rule of "remaining project costs equal personnel costs" does not hold: project costs under ZIM and KMU-innovativ also include materials and equipment, which the R&D Tax Credit does not recognize at all. Which share of personnel costs is already covered by ZIM or KMU-innovativ has to come from the approval notice in each case.
Details on combining the two head-to-head are covered on R&D Tax Credit vs. ZIM and R&D Tax Credit vs. EU funding.
Which questions come up most often about the funding comparison?
When is another program the better choice?
Three situations where ZIM, KMU-innovativ or the EIC Accelerator bring more than the R&D Tax Credit alone.
- High share of investment, low personnel costs: A new project that has not yet started and carries a high share of materials or equipment costs benefits from the ZIM funding rate of up to 45% (up to 55% for cooperation) or the KMU-innovativ rate of up to 50% of project costs, well above the FZulG rate of 35% for SMEs.
- Research in a BMBF technology field: A project in biotechnology, medical technology or another defined technology field fits KMU-innovativ, which funds cutting-edge research with up to EUR 600,000.
- International scaling with a high capital need: A project with international scaling potential fits the EIC Accelerator, which combines up to EUR 2.5 million grant with up to EUR 10 million equity, more than the maximum R&D Tax Credit of EUR 4.2 million per year.
Without a cooperation partner, market proximity or international capital needs, the case for all three alternatives falls away at once; what remains is the Forschungszulage as the only legal entitlement, independent of competing for a limited funding pot.
Which program fits your project? We clarify that in a first consultation.
We place your project within the funding landscape and manage the complete R&D Tax Credit application, from the BSFZ certificate to payout by the tax office. Success-based, 70 % of the fee due only after payout.
Book a first consultationRead on
- R&D Tax Credit (FZulG): the guideRequirements, funding amount and the BSFZ application at a glance.
- R&D Tax Credit vs. ZIMThe direct comparison of both programs in detail, with a combination calculation.
- R&D Tax Credit vs. EU fundingHow the allowance works alongside the EIC Accelerator and other EU programs.
- R&D Tax Credit CalculatorCalculate the assessment basis and allowance from your own figures.
- Contract Research70 % of the fee for external R&D contracts counted toward the assessment basis.
- Success StoriesReal projects, real results from supported R&D Tax Credit applications.
Max Nodes
Founder and Managing Director of NOVARIS Consulting. Specialised in the German R&D tax credit (FZulG) since 2021; 25 of 25 accompanied BSFZ applications approved (as of 09/2026). Max Nodes