Optimize your expenses with the Innovation Tax Credit (CII) 🚀

Optimize your expenses with the Innovation Tax Credit (CII) 🚀

The Innovation Tax Credit (CII) is a tax system that allows companies to benefit from a tax reduction to finance their innovative projects. This credit is a real opportunity for SMES (Small and Medium Businesses) that invest in creative and innovative solutions. But how does that work? And how your web agency can it help you take advantage of it? We explain everything to you! 💡

What is the Innovation Tax Credit (CII)? 🏷️

The HERE Is a tax credit granted to companies that carry out innovative projects. Concretely, it makes it possible to reduce corporate tax (IS), with the possibility of reimbursement if the amount of the tax credit exceeds the tax due. In practice, a company that benefits from the CII can recover up to 30% of innovation-related expenses, with a ceiling of €120,000 per year.

But what is considered “innovation” in this case? For a product to be qualified as innovative, it must meet two essential criteria:

• He is not yet available on the market.
• He must present superior performances compared to existing products in technical, ergonomic or functional terms.

It is important to note that innovation should be marketable. For example, if a company develops an internal tool, this will not be eligible for the CII. A project that remains strictly internal to the company cannot therefore benefit from this aid. The CII supports SMEs that incur expenses until 31 December 2027.

Who can benefit from the CII? 👥

The CII is only for SMES. A company must meet several criteria to benefit from it:

• She must be based in France.
• She should not not be owned by a foreign group.
• Funded projects should be considered as innovators according to the CII criteria.

That's where a web agency approved CII, like Capsens, comes into play. If you are working on innovative digital projects with an agency HERE, you can include their benefits in your calculation to benefit from the tax reduction. This concerns both web development work and technical innovation consulting.

How does the CII calculation work? 📊

The amount of Innovation Tax Credit is equal to 30% of the innovation expenses incurred during the year, up to a limit of €120,000 per year. This credit is therefore capped according to expenses.

Here is a simple example:

• A company engages €500,000 for an innovative project.
• 30% of this sum (€150,000) can be taken into account for the CII.
• However, she will only be able to benefit from a maximum of €120,000, the ceiling set by the CII.

The expenses included in this calculation are numerous:

• Salaries of employees assigned to the project.
• External expenses (such as the services of a CII approved web agency).
• Depreciation costs for equipment used for the project.

CII approval for Capsens and our customers 🤝

Capsens has obtained approval HERE, which means that the expenses of our customers on innovative projects with us can be integrated into their file of HERE. This approval is great news for our clients, as it allows them to recover part of their expenses in the form of a tax credit, which significantly reduces the net cost of their innovation projects.

What does this change for Capsens 🔄

For Capsens, this approval means that we must now be more precise in billing certain items. Our customers will sometimes have to see specifically which benefits are directly linked to innovation to justify their tax credit. It is also an excellent argument for offering web development services at a lower net cost, while ensuring our customers that they benefit from a substantial tax reduction.

In conclusion ✨

The Innovation Tax Credit is a golden opportunity for SMES to finance their innovative projects while reducing their tax burden. For businesses that work with web agencies approved by CII, like Capsens, it is a real opportunity to reduce the cost of their digital developments and to advance their projects while optimizing their taxation.