Tax credit for prototypes

In total, the deduction cannot exceed 10% of the company’s income.

The prototype tax credit covers two key areas: the trial production of a new product and its introduction to the market.

Trial production of a new product

Trial production is the technological start-up stage of production, which does not require further design or engineering work. Its purpose is to perform trials and tests before launching the full production process. Relief at this stage includes:

• The purchase price or manufacturing cost of brand-new fixed assets – necessary for launching trial production of a new product.
• Costs of improvements tofixed assets – related to their adaptation to the launch of trial production of a new product.
• Costs of materials and raw materials – purchased solely for the purpose of trial production of a new product.

Launch of a new product on the market

The launch of a new product on the market includes activities related to the preparation of documentation and obtaining the necessary certificates and permits to sell the product. Relief at this stage includes:

• Costs of research, expertise and preparation of documentation – necessary to obtain certificates, permits, etc.
• Costs of a product life cycle study – an analysis that helps assess a product’s environmental impact and sustainability.
• Costs of an environmental technology verification system – ensuring that the product meets certain environmental standards.