Newsflash – Corporate – Venture Capital – French government announcements to support Innovative Startup Companies (JEI)
For the occasion of the French Tech’s 10th anniversary, new measures stemming from the report of Parliament Member Paul Midy (for which Jeantet had been consulted) have been announced. These measures, which aim at supporting the French startup ecosystem, should be included in the next Finance Act for 2024.
► Doubling of companies eligible to the “JEI” exemption to contributions
- Lowering of the R&D spending criteria from 15% to 10% for “JEI” status eligibility
- As from 2025, creation of the Jeune Entreprise d’Innovation et de Croissance (JEIC) status for companies with R&D spending ranging from 5% to 10%, but with an important growth capacity
- As from 2025, creation of the Jeune Entreprise d’Innovation de Rupture (JEIR) status (deeptech) for companies with more than 30% R&D spending
In addition to their exemption to certain tax and social security contributions, these new statuses will enable the concerned companies to benefit from:
► Assistance in raising funds from private individuals (e.g., business angels) – income tax credit of up to EUR 50,000 based on a % of the amount invested (per tax household) of :
- 30% for “JEI” (starting in 2024) and for the “JEIC” (starting in 2025) for investments up to EUR 150,000
- 50% for “JEIR” for investments up to EUR 100,000
► Support for incentives (BSPCE): creation of an illiquidity discount for BSPCE (founders warrants) issued by “JEI” (including “JEIC” and “JEIR”) of up to 90% (combined with existing discounts) (Source: Les Echos newspaper)
► Cash flow support (Research Tax Credit (CIR)) : accelerated payment of the CIR in 1 year (instead of 3)
► Support in accessing public procurement tenders: opening of the “innovative purchase“ simplified regime to eligible “JEI” startup companies, giving them access to public procurement without competitive tendering and with a simplified procedure, for up to EUR 100,000 per agreement of public procurement
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