Completing the research allowance (Forschungszulage) application: step by step
The research allowance application is completed in two stages: first the BSFZ application through the online portal (project described in research language, within tight character limits), then – with the certificate in hand – the application via “Mein ELSTER” at the tax office. This guide takes you field by field through both stages.
The two-stage procedure in brief
The research allowance involves two separate applications. The BSFZ application (stage 1) demonstrates that your project is research and development. Only then do you claim the allowance in the tax application via ELSTER (stage 2), per financial year. The complete process with all deadlines is set out in the first application process; here the focus is on which field to fill with what.
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Identify the project as R&D
Before you fill in a single field, define the eligible project. It is not the whole product that counts, but the part with a knowledge gap and technical risk. Everything else builds on this.
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Draft the BSFZ portal fields
Title, objectives/R&D content, novelty, risks and planning – within the tight character limits and in research language instead of development language.
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Submit the BSFZ application
The application is submitted exclusively through the official BSFZ online portal, in German – free of charge, before, during or after the project.
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Wait for the certificate
The BSFZ usually takes around two to three months to review. If they ask for additional information, the deadline is short – which is why the first application has to be right from the start.
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File stage 2 via ELSTER
With the certificate, you (or your tax advisor) claim the allowance per financial year via “Mein ELSTER” at the tax office.
BSFZ application: completing it field by field
The application is submitted exclusively through the official BSFZ online portal, in German. The limits are tight – every word has to count. As a rough guide :
| Portal field | ≈ characters | What goes in it |
|---|---|---|
| Title of the R&D project | 200 | A research title that sounds like a scientific undertaking – not the product name. |
| Objectives / R&D content | 1.500 | Structure it as problem → knowledge gap → research approaches. Start with the unsolved technical question, not with the product. |
| Novelty | 500 | Name the state of the art with a year and state concretely what goes beyond it – demonstrate it, don’t just claim it. |
| Risks / uncertainties | 1.000 | Only scientific and technical uncertainties, no commercial ones. “Whether [technical question] – [open status]”. |
| Planning / phases | 1.000 | Research phases with hypotheses and testing steps (methodology), not just a list of work packages. |
The biggest lever is language: describe not the product, but the knowledge gap and the risk. With before/after examples: research language instead of development language. What the BSFZ typically rejects is shown by the most common reasons for rejection.
Stage 2 – completing the application via “Mein ELSTER”
Once the BSFZ certificate is in hand, you file the research allowance application via “Mein ELSTER” at the tax office – per financial year, after it has ended. For this you need an ELSTER user account with a certificate. You enter the eligible expenses (above all R&D staff costs, documented via the R&D hours worked per employee) and refer to the certificate. The allowance is then offset against your assessed tax and any excess amount is paid out.
Common mistakes – and how to avoid them
- Product language instead of research language: a sentence that could just as well appear in a data sheet gets rejected.
- Novelty merely claimed (“innovative”) instead of demonstrated against the state of the art.
- Commercial instead of technical risks described (market risk does not count).
- Character limits blown or fields filled with marketing – only the text in the portal fields counts.
- Eligible and non-eligible activities not cleanly separated.
Application done – or would you like help?
Two routes: we review your finished application at a fixed price – or we take on the entire BSFZ stage, success-based and with no upfront risk.
Frequently asked questions about completing the application
How do I complete the BSFZ application?
The BSFZ application is completed entirely through the official online portal, in German. You describe your project across several fields (title, objectives/R&D content, novelty, risks, planning) – each in “research language” and within tight character limits. What matters is to bring out the knowledge gap, technical risk and systematic approach clearly.
What belongs in the project description?
The “Objectives / R&D content” field should follow the structure problem → knowledge gap → research approaches. Start with the technically unsolved question (not with the product), explain why the outcome was still open at the start of the project, and which approaches you are pursuing to resolve it. Novelty and risk are developed further in their own fields.
How many characters do I have per field?
The fields have tight character limits – as a rough guide: title around 200, objectives/R&D content around 1.500, novelty around 500, risks and planning around 1.000 characters each. Only the text in the portal fields counts; external project descriptions are not taken into account.
Do I need an ELSTER certificate?
For stage 2 – claiming it with the tax office – yes: the research allowance application is filed via “Mein ELSTER”, which requires an ELSTER user account with a certificate. For stage 1, the BSFZ application, you do not need an ELSTER certificate but an account in the BSFZ portal.
What does the BSFZ application cost?
The BSFZ application itself is free – the certification body for the research allowance (BSFZ) does not charge a fee. Costs only arise if you get support in completing it. At Zulagenlotse, full support is success-based (10%) and the application review is a fixed price.