Support programs for digitization in SMEs

Today’s blog post is all about funding programs for digitization in SMEs. There are a variety of funding programs at the federal and state level. Today, we present two selected funding opportunities at the federal level and go into detail about the respective requirements for your company as well as the amount of possible financial support.

The tax research allowance

The draft law on tax incentives for research and development is intended to strengthen Germany as a location for innovation. The aim is to encourage small and medium-sized enterprises to conduct more research and development.

In principle, any taxable company within the meaning of the Income Tax Act and the Corporation Tax Act can apply for the funding. Projects that can be categorized as basic research, industrial research or experimental development are supported. In the wake of the Corona pandemic and the associated tax adjustments, the law has already been revised. Instead of previously €2,000,000 in eligible expenses and a grant of €500,000 per fiscal year, the amounts have been doubled to €4,000,000 and a possible grant of €1,000,000.

For the text of the law: click here!

Digital Now – investment support for SMEs

To strengthen digitization projects, the German Federal Ministry of Economics and Climate Protection (BMWK) has launched the “Digital Now – Investment Support for SMEs” funding program. This is aimed at small and medium-sized enterprises, including craft enterprises and freelancers.

The funding is paid out as a grant that does not have to be repaid. This can be obtained for projects in two so-called “modules”. The first module covers “investments in digital technologies”. This includes expenditure on hardware and software as well as expenses for networking the company. The second module covers “investments in employee training on digital topics”. This includes training in the use of digital technologies, IT security and data protection.

The maximum funding amount is generally €50,000 per company. However, this amount can be higher under certain conditions, for example in the case of investments in the value chain. The subsidy depends on the investment costs and the size of the company.

One of the requirements for applying for the subsidy is the completion of a digitization plan in which the entire project, including the intended measures, the current status, and the intended goals are described in detail. Furthermore, the investment must be made in a branch of the company in Germany. The project must be completed within 12 months (only in exceptional cases > 12 months) and must not have started when the funding is distributed. The exact use of the funding must always be documented.

Further information: click here!

Click here to go to the Digital Jetzt website.

You have a product idea and are looking for a competent implementation partner for the digital transformation of your company? Do not hesitate and contact us via our contact form – together we will find the optimal solution ideally supported by funding programs.

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