S.L. 463.5 Art. 3Tax credits or cash grants for research and development and innovation activities.

(1) Where the Corporation is satisfied that an undertaking requires assistance to carry out research and development and innovation activities for developing new products, processes or services or for bringing about a significant improvement in existing products, processes and services, the Corporation may assist such an undertaking by means of a tax credit or a cash grant as a percentage of the eligible costs incurred by such undertaking in the development of the said products, services or processes in accordance with the terms and conditions set out in the Guidelines: Provided that as from the 1st November 2014 where the Corporation is satisfied that an undertaking requires assistance to carry out industrial research and experimental development projects, the Corporation may assist such an undertaking by means of a tax credit or a cash grant as a percentage of the eligible costs incurred by such an undertaking in accordance with the terms and conditions set out in the Guidelines: Provided also that as from the 1st November 2014 where the Corporation is satisfied that an undertaking requires assistance to carry out feasibility studies in preparation for an industrial research or an experimental development project, the Corporation may assist such an undertaking by means of a cash grant as a percentage of the eligible costs incurred by such an undertaking in accordance with the terms and conditions set out in the Guidelines.

(2) The tax credit that may be claimed under this regulation shall be due for each year of assessment that immediately follows a year in which the eligible expenditure giving rise to the right to the tax credit is incurred.

(3) The assistance referred to in sub-regulation (1) may be provided only if the research, development and innovation project together with the relative services and costs involved have been approved in writing by the Corporation: a priori Provided that such assistance may be approved by the Corporation only if the undertaking shall increase its level of research, development and innovation activities and shall carry out research, development and innovation projects or activities which would otherwise not have been carried out or would have been carried out in a more restricted manner.