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Industry: Automotive & Vehicle Technology

Research Allowance for Automotive & Vehicle Technology

In vehicle technology, research up to the point of prototype testing is eligible – production ramp-up and homologation are not. Eligible activities include new powertrain, battery and lightweight construction concepts, driver assistance algorithms with genuine technical risk, and test vehicles with an open outcome. We draw a review-proof line between research and series work.

Research allowance for Automotive & Vehicle Technology

Context

Automotive projects are assessed against the general R&D criteria as well as the rules for mechanical engineering (prototype, special-purpose machine) and ICT (algorithms, software). What matters is a scientific-technical uncertainty that cannot be resolved with routine or application procedures.

Which R&D activities in Automotive & Vehicle Technology are eligible?

  • New powertrain, battery or fuel cell concepts with uncertain performance or safety behaviour
  • Lightweight construction: new materials, joining processes or structures with a technically open outcome
  • Driver assistance, sensor fusion and control algorithms with genuine technical risk (per the ICT criteria)
  • Building and testing prototypes or test vehicles to validate technological foundations
Example calculation

Example: research allowance in Automotive & Vehicle Technology

For illustration only – not a real client case.

Assumption: Assume around €540,000 of eligible R&D staff costs per year for a qualifying Automotive & Vehicle Technology project.

Research allowance for SMEs (35%) €189,000 per year
Standard rate (25%) €135,000 per year

Simplified example based on the eligible R&D staff costs (as of July 2026); excluding the overhead flat rate, contract research, owner work and the cap. Your actual funding depends on the individual case.

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Typical non-eligible activities & reasons for rejection

This is exactly where many first applications fail. These points come from the BSFZ review guidelines:

  • Production ramp-up, pilot series and serialization after development is complete
  • Homologation, type approval and approval-related documentation
  • Variants, facelifts and applications within the known technical framework without genuine risk
  • Calibration, parameterization and tuning using established procedures
  • Maintenance, repair and standard testing

Research language instead of development language

The BSFZ assesses by scientific criteria. An example from Automotive & Vehicle Technology:

Development language

“We improved the range of our vehicle.”

Research language

“Whether a novel cell chemistry and thermal management concept increases energy density within defined safety and ageing limits – with an outcome that was open at project start and documented threshold values.”

More on research language →

FAQ: research allowance for Automotive & Vehicle Technology

Which R&D activities in vehicle technology are eligible?

Eligible activities include new powertrain, battery and lightweight construction concepts, control and assistance algorithms with technical risk, and the building and testing of prototypes – in each case up to the point of prototype testing.

Is production ramp-up eligible?

No. The eligible R&D phase ends with the testing and final evaluation of the prototype. Production ramp-up, pilot series and homologation are no longer part of it.

Does application/calibration count as research?

As a rule, no: tuning and calibration using established procedures are routine. It only becomes eligible if a genuine technical uncertainty arises that cannot be resolved with standard procedures.

Eligible in Automotive & Vehicle Technology? Check for free.

We tell you honestly whether – and roughly how much – a BSFZ application is worth for your project.