CIR opportunities

[dachary]

Bonjour,

This is for @pilou’s benefit mostly because his work on fedeproxy is paid via a company based in France where CIR is a way to fund R&D activities. In a nutshell up to 30% of the salary can be reimbursed if the work done is R&D.

The company can declare this work to the IRS and get the corresponding amount the same year, no question asked. However… there may be questions asked a few years later and if it turns out the activities are not R&D or there is not enough evidence of these activities, the money will have to be given back. The IRS is quite flexible when this happens and payments can be scheduled over a decade, but it’s not a risk anyone want to take.

To prevent that from happening, the solution is to ask for a validation in advance (which is called a rescrit). It explains in detail what the project is about and why it is R&D. The CIR guide (2.4 MB) describes how to do that in detail but it does not provide an example to get inspiration from. Luckily I spent days over the past months to write such a document in the context of another project. I’m waiting for permission to share it publicly but in the meantime I’m happy to share it privately.

Cheers

[pilou]

@dachary

This is for @pilou’s benefit mostly because his work on fedeproxy is paid via a company based in France where CIR is a way to fund R&D activities . In a nutshell up to 30% of the salary can be reimbursed if the work done is R&D.

As mentioned page 38 in the section 4.1 of the CIR guide:

Les subventions publiques, remboursables ou non, attribuées par l’Union européenne, l’État ou les collectivités territoriales à raison d’opérations ouvrant droit au CIR doivent être déduites de la base de calcul du crédit d’impôt au prorata de l’assiette correspondant aux opérations ouvrant droit au CIR.

It means that the DAPSI sub-grant must be subtracted from the amount declared to the IRS. Since only the amount of R&D can be declared, this would imply performing some R&D besides the DAPSI project.