G/SCM/N/343/EU/Add.10  
 
23 January  2020 
(20-0585) Page: 1/37 
Committee on Subsidies and Countervailing Measures  Original: French  
 
  
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE G ATT 1994  
AND ARTICLE 25 OF TH E AGREEMENT ON SUBSI DIES AND  
COUNTERVAILING MEASU RES 
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to the subsidy programmes 
of France . 
 
_______________  
 
 G/SCM/N/343/EU/Add.10  
 
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  Table of contents  
1   SPECIFIC SCHEMES  ................................ ................................ ................................ ..... 4 
1.1   FRAMEWORK SCHEME NO. SA.39252 FOR REGIONAL AID FOR THE PERIOD 2014 -2020 ....... 4 
2   REGIONAL SCHEMES  ................................ ................................ ................................ ... 5 
2.1   Metropolitan France  ................................ ................................ ................................ ..... 5 
2.1.1    Reindustrialization aid  ................................ ................................ ...............................  5 
2.1.2    Industrial projects for the future  ................................ ................................ .................  5 
2.1.3    Tax exemption and reduction for new enterprises in regional aid areas  ............................  6 
2.1.4    Tax exemption and reduction for ente rprises located in rural revitalization areas  ..............  7 
2.1.5    Land-Use Management Premium (PAT)  ................................ ................................ ........  8 
2.2   Corsica  ................................ ................................ ................................ .......................  9 
2.2.1    Tax credit for certain investments made and exploited in Corsica  ................................ .... 9 
2.3   French Overseas Departments (DOMs)  ................................ ................................ .......... 11 
2.3.1    Tax aid for productive investments in  French Overseas Departments and Territories  ........ 11 
2.3.2    Tax reduction for profits from operations in the Free Zones for Activities (ZFA) in Overseas 
France  ................................ ................................ ................................ .............................. 13 
2.3.3    Transport support measure for the French Overseas Departments  ................................ .14 
2.3.4    Call for projects – Digital territorial continuity in Overseas France  ................................ ..16 
2.4   Urban areas in difficulty  ................................ ................................ .............................. 17 
2.4.1    Tax concessions for enterprises located in urban free zones – entrepreneurship territories 
(ZFU TE)  ................................ ................................ ................................ ........................... 17 
3   RESEARCH AND DEV ELOPMENT (R&D) SCHEM ES ................................ ......................  19 
3.1   Calls for projects - "Support for and transformation of sectors"  ................................ ........ 19 
3.2   Innovation aid for SMEs  ................................ ................................ .............................. 20 
3.3   French tech grant  ................................ ................................ ................................ .......21 
3.4   World Innovation Competition/Innovation Competition  ................................ .................... 21 
3.5   National competition to support start -ups (I -LAB) ................................ ........................... 22 
3.6   Industrial Agreement for Training through Research (CIFRE)  ................................ ........... 23 
3.7   Tax credit for research (CIR)  ................................ ................................ ........................ 23 
3.8   Enterprise Competitiveness Fund (FCE)  ................................ ................................ ......... 24 
3.9   National Digital Society Fund (FSN)  ................................ ................................ .............. 25 
3.10   Single Interministerial Fund (FUI)  ................................ ................................ ............... 26 
3.11   Technological Research Institutes  ................................ ................................ ............... 27 
3.12   Energy Transition Institutes  ................................ ................................ ....................... 27 
3.13   Young Innovative Enterprises  ................................ ................................ ..................... 28 
3.14   Shared innovation platforms  ................................ ................................ ...................... 29 
3.15   Competitiveness clusters – "Category B missions"  ................................ ........................ 29 
3.16   Regional and local community programmes  ................................ ................................ .30 
3.17   Structuring programmes for competitiveness  ................................ ............................... 31 
3.18   National Research Agency (ANR)  ................................ ................................ ................ 31 
3.19   Framework scheme No. SA.40391 for aid for research, development and innovation  ......... 33 G/SCM/N/343/EU/Add.10  
 
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  3.20   Support for institutions engaged in research for the sustainable development  
of air transport  ................................ ................................ ................................ .................. 33 
3.21   Support for innovation and the sustainable development of air transport  ......................... 34 
4   SECTORAL SCHEMES  ................................ ................................ ................................ .. 35 
4.1   AID FO R SMES  ................................ ................................ ................................ ........... 35 
4.1.1    Tax credit for innovation (CII)  ................................ ................................ ................... 35 
4.1.2    Ultra-High-Speed Broadband Plan for France/ National Digital Society Fund (FSN)  ........... 36 
4.1.3    Tonnage -based tax scheme  ................................ ................................ ....................... 36 
 G/SCM/N/343/EU/Add.10  
 
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  1   SPECIFIC SCHEMES  
1.1  FRAMEWORK  SCHEME NO. SA.39252 FOR REGIONAL AID FOR THE PERIOD 2014 -2020  
1. Period covered by the notification  
2015 and 2016.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
In 2014 , the European Commission amended the rules governing member State intervention for the 
period 2014 -2020. Under this revised framework, aid scheme No. SA.39252 provides for the granting 
of investment aid to promote the economic development of regions (areas  eligible for regional aid) 
where the standard of living is abnormally low or where there is serious under -employment in view 
of their structural, economic and social situation. The aim of the scheme is to close the development 
gap between regions in the E uropean Union (equity and cohesion) with a view to achieving inclusive, 
sustainable growth.  
3. Legal basis (reference, date ) 
Scheme No. SA.39252.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Grant, loan, repayable advance.  
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries (who receives the subsidy, the producer, the exporter, other)  
 
Small and medium -sized enterprises ( SMEs ) and large enterprises. Aid for large enterprises is  
restricted to initial investments in new economic activities.  
Eligible base: tangible and intangible assets.  
Maximum aid levels:  
30% for small enterprises;  
20% for medium -sized enterprises;  
10% for large enterprises.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
• Amount for  2017: data not yet available.  
• Amount for  2018: data not yet available.  
7. Duration of the subsidy and/or any other time -limits attached to it  
The aid scheme applies until 31 December  2020.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Scheme designed to help close the economic development gap bet ween regions.  G/SCM/N/343/EU/Add.10  
 
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  2  REGIONAL SCHEMES  
2.1  Metropolitan France  
2.1.1   Reindustrialization aid  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To support capital -intensive and structuring projects for the regions  ("industrial excellence" 
component ) and promote the growth of SMEs ("growth and development" component ). 
3. Legal basis (reference, date ) 
Aid scheme No. SA.39252.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Repayable advance . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries – Only enterprises whose  main activity is listed in the "manufacturing  industry " 
section of the French Classification of Activities (NAF) are eligible . However, their rating from the 
Banque de France  must not  be equal to or lower than  6. 
Conditions – 
- "Industrial excellence" component: minimum thresholds of EUR 5 million in investments and 
25 new jobs created . 
- "Growth and development" component: reduced eligibility thresholds of EUR 2 million in 
investments and  10 new jobs created . 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount paid in  2017: EUR 61.1 million . 
Amount paid in 2018: EUR 7.1 million.  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
2.1.2   Industrial projects for the future  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To sup port the development and then industrialization of one or several products, processes or 
services which are not available on the market and which are highly innovative . G/SCM/N/343/EU/Add.10  
 
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  3. Legal basis (reference, date ) 
Aid scheme No.  SA.39252.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy and repayable advance . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Innovative SMEs and mid -cap enterprise s. 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount paid in  2017: EUR 2.94 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
2.1.3   Tax exemption and reduction for new enterprises in regional aid areas  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
In order t o promote the creation of new enterprises in areas with geographical, economic or social 
disadvantages, this aid scheme provides for an exemption from taxes on profits made by new 
enterprises establis hed in regional aid areas as determined on the basis of  a map approved by the 
European Commission.  
3. Legal basis (reference, date ) 
Article 44 sexies  of the General Taxation Code  (CGI) , deriving from Article 14A of Law No. 88 -1149 
of 23 December 1988, exten ded by Article 92 -I of Law No. 99 -1172 of 30 December 1999 and then 
by Article 92 of Law No. 2003 -1311 of 30 December 2003, as amended by Article 87 of Amending 
Finance Law for 2006 No. 2006 -1771 of 30 December 2006, by Article 45 of Amending Finance Law 
for 2007 No.  2007-1824 of 25 December 2007, by Article 62 of Amending Finance Law for 2009 
No. 2009-1674 of 30 December 2009, by Articles 108 and 129 of Finance Law for 2011 
No. 2010-1657 of 29 December 2010, by Article 47 of Amending Finance Law for 2014 
No. 2014-1655 of 29 December 2014 and by Article 78 of Amending Finance Law No. 2015 -1786 of 
29 December 2015.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Total exemption from profits tax until the end of the twenty -third month following the month of 
set-up, followed by a reduction for profits earned over the three subsequent 12 -month periods (75%, 
then 50%, then 25%).  
Eligibility for the benefit is subject to compliance with Commission Regulation (EU) No  1407/2013 
of 18 December 2013 on de minimis  aid. 
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  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiaries (who receives t he subsidy, the producer, the exporter, other)  - New 
enterprises in the legal and economic sense (excluding resumption, merging, restructuring, and 
extension of pre -existing activities), at least 50% of the share capital of which is held directly or 
indire ctly by natural persons, and which are set up in specified areas.  
- Allocation mechanism  – By operation of law.  
- Conditions  – Genuinely new enterprises set up in eligible areas and the headquarters and all 
activities and operating resources of which are estab lished in the area concerned. However, in the 
case of enterprises exercising a non -sedentary activity, conditions of establishment are considered 
to have been met if turnover generated outside eligible areas does not exceed 15% of total turnover 
(above thi s threshold, profits are taxed but on the basis of turnover generated outside such areas).  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average su bsidy per unit in the previous year ) 
Estimated total amount for  2018: EUR 72 million  (EUR 73 million in  2017).  
7. Duration of the subsidy and/or any other time -limits attached to it  
The scheme is applicable to enterprises set up by 31 December 2020 in areas eligible for regional 
aid. 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Around  17,100 beneficiary enterprises in 2017.  
2.1.4   Tax exemption and reduction for enterprises located in rural revitalization areas  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
In order t o promote the creation or takeover of enterprises in areas with geographical, economic or 
social disadvantages, this scheme provides for an exemption from taxes on profits made by 
enterprises created or taken over in rural revitalization areas determined i n accordance with the 
objective criteria used to define rurality (density, income level).  
3. Legal basis (reference, date ) 
Article 44 quindecies  of the General Taxation Code (CGI) derived from Article 129 of Finance Law for 
2011 No. 2010 -1657 of 29 December  2010,  extended by Article  29 of Amending Finance Law for 
2013 No. 2013 -1279 of 29 December 2013, by Article 47 of Amending Finance Law for 2014 
No. 2014-1655 of 29 December 2014 and by Article 45 of Amending Finance Law for 2015 
No. 2015-1786 of 29 Decemb er 2015, as amended by Article 15 of Finance Law for 2016 
No. 2015-1785 of 29 December 2015 , by Articles 17 and 18 of Law No. 2017-1775 of 28 December 
2017, by Article 23 of Finance Law for 2019 No. 2017 -1837 of 30 December 2017, by Articles 19 
and 135 of Finance Law for 2019 No. 2018 -1317 of 28 December 2018.  G/SCM/N/343/EU/Add.10  
 
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  4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax concession. Exemption from profits tax until the end of the fifty -ninth month following the month 
of set -up or takeover, followed by  a reduction for profits earned over the subsequent 
three  12-month  periods (75%, then 50%, then 25%).  
Eligibility for tax exemption and partial tax exemption is subject to compliance with Commission 
Regulation (EU) No 1407/2013 of 18 December 2013 on de minimis  aid. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other)  - Enterprises 
with less than eleven employees, 50% of the share capital of wh ich is directly or indirectly held by 
natural persons, and which are created or taken over in rural revitalization areas.  
- Allocation mechanism  – By operation of law.  
- Conditions – Enterprises with less than eleven employees, not engaged in excluded activities 
(e.g. banking, finance, insurance, management or property leasing), created or taken over 
(excluding restructuring and extension of pre -existing activities) in eligible areas, and the 
headquarters and all activities and operating resources of wh ich are established in the area 
concerned. However, in the case of enterprises exercising a non -sedentary activity, conditions of 
establishment are considered to have been met if turnover generated outside eligible areas does not 
exceed 25% of total turnov er (above this threshold, profits are taxed but on the basis of turnover 
generated outside such areas).  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, t he average subsidy per unit in the previous year ) 
Total amount for 2017:  EUR 123 million . 
Estimated amount for 2018 : EUR 121 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
The scheme applies to enterprises created or taken over up to 31 December 2020  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
20,600 beneficiary enterprises in  2017.  
2.1.5   Land -Use Management Premium (PAT)  
1. Period covered by the notification  
2015 and 2016.  
2. Policy obje ctive and/or purpose of the subsidy (or aid scheme ) 
Creation, extension or takeover of production activities in priority areas (areas eligible for regional 
aid). 
3. Legal basis (reference, date ) 
Since 19 September 2014 (date of entry into force), the current scheme has been governed by a 
decree:  
• Decree No. 2014 -1056 of 16 September 2014 concerning the land -use management premium 
for industry and services.  
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  An order implementing the aforementioned decree is currently under preparation.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiaries : enterprises the sector of activity of which is listed in Annex 2 to Decree 
No. 2014-1056.  
- Allocation mechanism : Decision by the Minister responsible for town and country planning.  
- Conditions  –  
Land-use management premium (PAT) for industry and services  
The three categories of eligible project and the eligibility thresholds in terms of jobs created or 
maintained or invested amounts are summarized in the table below.  
TYPE OF PROJECT  ELIGIBILITY THRESHOLDS  
Setting up of an establishment  20 net jobs created and investment of EUR 3 million  
Extension, diversification or 
fundamental change of process  20 net jobs, representing at least 50% of the company's workforce, 
and investment of EUR 3 million; or  
40 net jobs and investment of EUR 3  million; or  
Investment of EUR 10 million  
Acquisition of assets  Dire employment situation  
Sustainable and structural recovery of the company's 
competitiveness  
Significant number of jobs maintained within the company  
Takeover of 50 jobs and investment of EUR 3 million  
6. Total annual amount  
2015: EUR 23,400,000. 
2016: EUR 13,100,000. 
7. Duration of the subsidy and/or any other time -limits attached to it  
General scheme valid until 31 December 2020.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 2015  2016  
Number of assisted jobs created or maintained  6127 2836 
Productive investments assisted  EUR 441,800,000 EUR 348,100,000 
2.2  Corsica  
2.2.1   Tax credit for certain investments made and exploited in Corsica  
1. Period covered by the notification  
2017 and 2018.  G/SCM/N/343/EU/Add.10  
 
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  2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To promote investment in Corsica in order to address the difficulties arising from the island's insular 
and rural nature . 
3. Legal basis (reference, date ) 
Article 244 quater  E, 199 ter D and 220 D of the General Taxation Code  (CGI) , deriving from Article  48 
of Law No. 2002 -92 of 22 January 2002 on Corsica. Article 244 quater  E was last amended by 
Article  39 of Amending Finance Law for 2011 No. 2011 -71978 of 28 December 2011, by Article 3 2 
of Amending Finance Law for 2012 No. 2012 -1510 of 29 December 2012, by Article 20 of Amending 
Finance Law for 2014 No. 2014 -891 of 8 August 2014, by Article 78 of Amending Finance Law for 
2014 No. 2014 -1655 of 29 December 2014, by Article 145 of Law No. 2015-990 of 6  August  2015 
on growth, activity and equal economic opportunities , by Article 78 of Amending Finance Law for 
2015 No. 2015 -1786 of 29 December 2015, Articles 73 and 74 of Law No.  2016-1917 of 
29 December  2016, Article 17 of Amending Finance L aw for 2017 No. 2017 -1775 of 
28 December  2017, and Articles 22, 37, 135 and 152 of Finance Law for 2019 No. 2018 -1317 of 
28 December 2018.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax credit equivalent to 20% of pre -tax investment costs  or 30% depending on the size of the 
enterprise . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Small and 
medium -sized industrial, commercia l, crafts, liberal -professional and agricultural enterprises 
exploiting investments in Corsica.  
The tax credit is subject to compliance with Article 14 of Commission Regulation (EU) No 651/2014 
of 17 June 2014 declaring certain categories of aid compatible with the internal market in application 
of Articles 107 and 108 of the Treaty.  
- Allocation mech anism : Upon option by the enterprise.  
- Conditions – Investments eligible for tax credit are those used in Corsica, other than 
replacement investments, and at least 25% of which is financed without State aid. Investments 
made in certain sectors of activity a re excluded. Eligible investments must be used in Corsica for at 
least five years.  
For certain categories of enterprise (new enterprises, failing businesses, young innovative 
enterprises, SMEs covered by Community law, etc.), receivables ( amounts due ) for tax credits 
calculated in respect of investments made as of 1 January 2012 are immediately repayable.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Total amount of tax credit for 2017 and 2018 ( estimated ): EUR 52 million.  
7. Duration of the subsidy and/or any other time -limits attached to it  
This aid scheme applies to investments made betwee n 1 January 2002 and 31 December 2020.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Around  5,274 beneficiary enterprises in  2017.  G/SCM/N/343/EU/Add.10  
 
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  2.3  French Overseas Departments (DOMs)  
2.3.1   Tax aid for productive investments in  French Overseas Departments and Territories  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To promote economic development in French Overseas Departments and Territories . 
3. Legal basis (refe rence, date ) 
- Article 199 undecies  B of the General Taxation Code ( CGI); Article  244quater  W of the  CGI; 
Article 217 undecies  of the  CGI. 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Article 199 undecies  B promotes cash flow to enterprises, enabling natural  persons (individual 
entrepreneurs, partners in a partnership , or partners of an enterprise subject to corporation tax) 
domiciled in France in accordance with Article 4 B of the  CGI, to benefit from a tax reduction in 
return for their contribution , in order to allow enterprises  to make a productive investment 
(operating equipment ). In the event of a lease payment reduction, an entity (carrier establishment ) 
will raise the capital invested by taxpayers  (non-partners ), with a view to acquiring property and 
leasing it to the operating enterprise receiving the investment, by means of a lease-purchase  
contract. In return for their contribution, investing taxpayers benefit from a tax reduction. The lease 
charg ed to the operating enterprise is reduced by a minimum fraction of the overall tax advantage 
obtained by the partners of the carrier  establishment . At the end of the lease period, the operating 
enterprise becomes the owner of the property.  
Article  217undec ies of the  CGI, reserved only for enterprises liable to corporation tax located in the 
French Overseas Departments , enables such enterprises to deduct from their taxable income the 
amount of productive investments that they make directly . This provision al so authorizes the 
financing of investments by means of a lease contract that makes the investment property available 
to the operating enterprise , whether it is established in a French Overseas Department or a French 
Overseas Community.  This leasing arrangement involves the creation, in France, of an entity  (carrier  
establishment ) which acquires the property and makes it available to the operating enterprise.  The 
partners of the carrier establishment  benefit from a tax concession  for their investment . The carrier 
establishment  then charges a reduced lease to the operating enterprise , for a minimum fraction of 
the overall tax concession  obtained by the partners of the carrier establishment . At the end of the 
lease period, the leasing enterprise becomes the owner of the property.  
Article 244 quater  W of the  CGI enables enterprises which are taxed under a real or simplified regime, 
and which are engaged in industrial, commercial, crafts  or agricultural activit ies in a French Overseas 
Department, to benefit from a tax credit calculated on the basis of the value of the productive 
property in which they are investing. The operating enterprise may also acquire the property through 
leasing contract . 
5. Beneficiaries of the aid and allocation mechanism (calculatio n method and conditions ) 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other)  
In all cases, the financial aid is awarded to the operating enterprise using  the property that is the 
subject of the investment , that is, an enterprise engaged in agricultural, industrial, commercial or 
crafts  activit ies falling under Article 34 of the CGI. Pursuant to this Article, the profits made by 
natural  persons exercising a commercial, industrial or crafts  profession are co nsidered as industrial 
and commercial profits , for the determination of income tax . 
Enterprises that may benefit from the provisions of Article 199 undecies  B of the  CGI include 
individual enterprises or partnerships (with the exception of joint ventures) o f which the shares must G/SCM/N/343/EU/Add.10  
 
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  be held directly by the taxpayer or through a single -person enterprise with limited liability. The tax 
reduction also applies to productive investments made by an enterprise subject to corporation tax 
of which the shares are wholly owned by natural persons , where the investments are leased.  
Enterprises that may benefit from the provisions of Article 217undecies  of the  CGI include enterprises 
liable  to corporation tax by operation of law  or upon option, which make or create productive 
investments, or lease such investments.  Where the legal person making the investment is the owner 
of the investment, but makes it available to an enterprise, the partners of the enterprise may 
nevertheless apply a deduction . 
Enterprises that may  benefit from the provisions of Article 244quater  W of the  CGI include 
enterprises subject to corporation or income tax. Tax credit is also granted to  enterprises that  use, 
in a French Overseas Department, investments made available to them through a lease -purchase 
contract or leasing contract.  
- Allocation mechanism  
The allocation of aid involves a cash contribution from the partners (Article 199undecies  B), a tax 
reduction for entities subject to corporation tax (Article 217undecies ), a lease payment reduction 
when the enterprise is leasing the property  (Articles 199undecies  B and 217undecies ), or a tax credit 
only for enterprises located in the French Overs eas Departments (Article 244 quater  W). 
As regards property leasing arrangements, the financial aid in the form of a lease payment  reduction 
is calculated on the basis of a minimum fraction of the overall tax concession  obtained by the 
investors or partners  of the carrier establishment  leasing the property to the operating enterprise 
through a lease -purchase contract.  
For enterprises located in the French Overseas Departments, where the turnover of the operating 
enterprise is greater than EUR 20 million, the only form of fiscal support for which the operating 
enterprise  is eligible in respect of its productive investments is tax credit.  However, if its turnover is 
less than EUR 20 million, the operating enterprise  is eligible for the tax credit provided for in Article 
244quater  W of the CGI, the tax reduction provided for in Article 199 undecies  B of the CGI or the 
tax deduction provided for in Article 217 undecies  of the CGI, if it is subject to corporation tax.  If the 
operating enterprise wishes to benefit from the tax credit, it must exercise this option, which 
constitutes a waiver of its entitlement to the forms of relief provided for in Articles 199undecies  B 
and 217undecies  of the  CGI. 
Tax credits, like tax redu ctions and deductions from taxable income, may be subject to prior 
authorization from the Ministry responsible for the budget.  
Depending on the nature and/or amount of the investment made, two types of investment require 
the prior approval of the tax autho rities:  
-  investments in "sensitive" sectors, regardless of the amount of the investment project 
(Articles  199undecies  B and 217undecies  of the  CGI), which include  investments in  the following: 
the transport, recreational boating, agriculture, sea fishing and aquaculture sectors, the coal and 
iron and steel industries, the shipbuilding or synthetic fibres sectors and the automotive industry;  
and investment in relation to the restoration and rehabilitation of graded hotels, tourist 
accommodation and holiday villages;  
-  investments exceeding a certain amount  (EUR 250,000 o r EUR 1 million, depending on the 
situation) . 
- Conditions  
Aid is granted exclusively for new productive investments (tangible and redeemable ) made for the 
benefit of an enterprise engaged in industrial, commercial, crafts or agricultural activities.  
Aid is not allocated for investments made in certain sectors of activity specified in 
Article  199undecies  B of the  CGI (trade; cafés, tobacconists and bars/public houses and c atering; 
business advisory services and consultancy; education, health and social welfare; banking, finance G/SCM/N/343/EU/Add.10  
 
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  and insurance; all real estate activities; the cruise industry, car repair, rental/leasing services 
without operators; business services; leisure, s porting and cultural activities; postal services; and 
investments in installations generating electricity from solar radiation ). Commission Regulation (EU) 
No 651/2014 of 17 June 2014 also provides for specific conditions for the authorization of this aid.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Article 199 undecies  B: 
Total amount for 2017: EUR 302 million . 
Estimated total amount for 2018: EUR 335 million . 
Article 217 undecies : 
Total amount for 2017: EUR 63 million . 
Estimated total amount for 2018: EUR 61 million . 
Article 244 quater  W: 
Total amount for 2017: EUR 102 million . 
Estimated total amount for 2018: unavailable . 
7. Duration of the subsidy and/or any other time -limits attached to it  
The schemes provided for in Articles 244quater  W and 217undecies  of the  CGI are applicable until 
31 December 2020.  
The scheme provided for in Article 199undecies  B of the CGI is applicable until 31 December  2020 
in the French Overseas Departments and Saint Martin , and until 31 December 2025 in Saint Pierre 
and Miquelon, New Caledonia , French Polynesia , Saint Barthélemy , and the  Wallis and Futuna  
Islands . 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
The data below refers to the only investments  approved for tax purposes in 2017 and 2018 in the 
French Overseas Departments.  The statistics p resented concern the amount of the investments.  
Amount of investments approved in 2017:  
Article 199 undecies  B: EUR 56,959,000  
Article 217 undecies : EUR 45,320,000  
Article 244 quater  W: EUR 202,669,000  
Amount of investments approved in 2018:  
Article 199 undecies  B: EUR 69,153,000  
Article 217undecies:  EUR 20,855,000  
Article 244 quater  W: EUR 336,880,000  
2.3.2   Tax reduction for profits from operations in  the Free Zones for Activities (ZFA) in  
Overseas France  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To promote economic development and employment in the French Overseas Departments.  G/SCM/N/343/EU/Add.10  
 
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  3. Legal basis (reference, date ) 
Article 44 quaterdecies  of the CGI created by Article 4 of Law No.  2009-594 of 27 May 2009 ( policy 
law on economic development in Overseas France ).  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax reduction for profits from operations in Overseas France.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries (who receives the subsidy, the producer, the exporter, other)  – SMEs  subject 
to income tax or corporation tax which have operations in the Free Zones for Activities (ZFA) in  the 
French Overseas Departments (Guadeloupe, Guyana, Martinique, Mayotte or Réunion).  
 
Allocation mechanism  – Upon option . 
Conditions  – Enterprises operati ng in Guadeloupe, Guyana, Martinique, Mayotte or Réunion qualify 
for a profits tax reduction if the following conditions are satisfied: they employ fewer than 
250 employees and have an annual turnover of less than EUR 50 million; the operation's principal 
activity is in one of the sectors eligible for the tax reduction provided for in Article 199 undecies  B of 
the CGI, or is one of the following: accountancy, busines s advisory services, engineering, technical 
consultancy. The enterprise must also be subject to an actual tax regime or to one of the regimes 
defined in Articles 50 -0 and 102 ter. The enterprise must not be in difficulty within the meaning of 
Commission Reg ulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid 
compatible with the internal market in application of Articles 107 and 108 of the Treaty; the exclusion 
applied as of 1 July 2014. Finally (if the amount of the reduction is EUR 500 or more), the enterprise 
must incur expenditure for vocational training and make a payment to the Experimental Youth 
Development Fund, the minimum spending on these actions being proportional to the amount of the 
tax concession.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
• Total amount for 2017: EUR 63 million . 
• Estimated total amount for 2018: EUR 62 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
The scheme is applicable to accounting periods opened by 2019.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Around  6,338 enterprises  concern ed. 
2.3.3   Transport support measure for the French Overseas Departments  
1. Period covered by the notification  
2015, 2016 and 2017.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
The objective of the measure is to foster regional economic development by providing support that 
seeks to offset:  
- the additional costs of transporting goods produced in the French Overseas Departments and 
Saint Martin within the national boundaries , and the additional costs of transporting  primary 
products from their place of production to their place of processing;  
 G/SCM/N/343/EU/Add.10  
 
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  - the costs of transporting hazardous waste that cannot be treated or disposed of in the territories 
where it is produced (French Overseas Departments and Saint Martin).  
 
This measure  was extended on 1 January 2018 to include trade between the French 
outermost regions and the waste sector under the Law on Real Equality in Overseas 
France.  
The aid scheme aims to offset the incremental costs arising from the structural disadvantages related 
to the extremely remote location of the French Overseas Departments and French outermost 
regions. These incremental costs correspond to extra transport costs , in particular those generated 
by the lack of suitable local waste treatment plants and the need to send waste to mainland Europe 
or another French Overseas Department or French outermost region for treatment.  
3. Legal basis (reference, date ) 
Law No.  2009-594 of 27 May 2009 on the economic development of Overseas France, and Article  24 
in particular.  
 
Decree No.  2010-1687 of 29 December 2010 on freight aid for enterprises in the French Overseas 
Departments  of Saint Pierre and Miquelon, Mayotte, Saint Barth élemy, Saint Martin, and the Wallis 
and Futuna Islands.  
 
Decree No. 2017 -1476 of 16 October  2017 on freight aid granted to enterprises in the 
communities governed by Article 73 of the Constitution, of Saint  Pierre  and 
Miquelon,  Saint  Barthélemy, Saint  Martin and the  Wallis  and Futuna  Islands . 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Direct subsidy.  
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries : Enterprises in all production sectors except the following: the automotive, synthetic 
fibres, iron and steel, and coal industries and the fisheries sector, as well as the agricultural products 
listed in Annex I to the Treaty on the Functioning of the European  Union.  
Eligible  expenses:  
- In geographical  terms: the cost of transport between a French Overseas Department or a 
French outermost region and the European continent and inter -island transport in the Guadeloupe 
archipelago (importation).  
- Categories of expenditure : pre -tax cost of maritime or air transport, including insurance, 
handling and pre -clearance temporary storage charges, of the following:  
o raw materials (primary or intermediate products) and equipment imported for introduction 
into an enterprise's production cycle;  
o locally produced finished products delivered to the European continent.  
 Aid for waste transportation does not take into account the cost of long -term storage on 
non-approved platforms.  
- Basis of calculation : the cost of transport, irrespective of the Europ ean port or airport of origin 
or destination, is the cost of equivalent transport between the French Overseas Department or 
French outermost region concerned and continental France.  G/SCM/N/343/EU/Add.10  
 
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  6. Subsidy per unit or, in cases where this is not possible, the total amo unt or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
2015:   EUR 5.116 million . 
2016:   EUR 4.236 million . 
2017:   EUR 4.688 million . 
7. Duration of the subsidy and/or any other time-limits attached to it  
The scheme is in effect until 31 December 2020 . 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available.  
2.3.4   Call for projects – Digital territorial continuity in Overseas France  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To support the purchase of capacity on extraterritorial electronic communication systems for Internet 
providers in Overseas France, in order to in crease the scale of and reduce the cost of their 
international connectivity . 
3. Legal basis (reference, date ) 
Aid scheme No. SA.48412.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficiaries of the aid and allocation mecha nism (calculation method and conditions ) 
Beneficiaries  – Electronic communications operators as defined in A rticle L33 -1 of the Postal and 
Electronic Communications Code, which offer  fixed or mobile Internet services to end customers in 
Guadeloupe, Martinique, Guyan a, Réunion, Mayotte, Saint  Martin, Saint  Barthélemy and Saint Pierre  
and Miquelon.  
Conditions – For eligible purchases, the aid provided is based on a rate fixed according to the year 
of purchase. The table below indicates  the rates used for this call for projects in 2017 and 2018, and 
the rates planned for the subsequent years, if the scheme is extended:  
YEAR OF PURCHASE  2017  2018  2019  2020  2021  
Rate of aid  50% 40% 30% 20% 10% 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
7. Duration of the subsidy and/or any other t ime-limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  G/SCM/N/343/EU/Add.10  
 
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  2.4  Urban areas in difficulty  
2.4.1   Tax concessions  for enterprises located in urban free zones – entrepreneurship 
territories (ZFU TE)  
1. Period covered by the notification  
2017 and 2018. 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To revitalize  economic activity and promote social and professional integration in urban free zones 
– entrepreneurship territories (new designation of urban free zones since 30 December 2014).  
3. Legal basis (reference, date ) 
- Article 44 octies  of the CGI, deriving from A rticles 2, 5A and 5C of Law No.  96-987 of 14 November 
1996 on implementation of the Urban Regeneration Pact (creation of 44 "first -generation" ZFU -TEs 
on 1 January 1997) and extended by Law No. 2002 -1576 of 30  December 2002.  
 
Measures extended to 41 new (" second -generation") ZFU -TEs provided for by Law No. 2003 -710 of 
1 August 2003 on town planning and urban renewal (enterprises established in ZFU -TEs at 1  January 
2004 or which set up operations in such a zone between that date and the date of publication o f Law 
No. 2006 -396 of 31 March 2006 on equal opportunities), i.e. 3 April 2006.  
 
Technical adjustments to the measures under Amending Finance Law for 2003 No. 2003 -1312 of 
30 December 2003.  
 
- Article 44 octies  A of the General Taxation Code  (CGI) , deriving  from the aforementioned Law 
No. 2006-396 ("third -generation" ZFU -TEs) replaces the measures provided for by Article 44 octies , 
which ceased to apply to the creation of activities from the day after the date of publication of the 
Law on equal opportunities,  i.e. 3 April 2006. The exemption codified under Article 44 octies  A of the 
CGI, as amended by Article 157 of Finance Law for 2012 No. 2011 -1977 of 28 December 2011, by 
Article 42 of Ordinance No. 2013 -676 of 25 July 2013, by Article 29 of Amending Finance Law for 
2013 No. 2013 -1279 of 29 December 2013, by Article 48 of Amending Finance Law for 2014 
No. 2014-1655 of 29 December 2014, Article 145 of Law No.  2015-990 of 6 August 2015 on growth, 
activity and equal economic opportunities, Article 17 of Amending Finance Law for 2017 
No. 2017-1775 of 28 December 2017, and by Articles 19 and 135 of Finance Law for 2019 
No. 2018-1317 of 28 December 2018, is applicable to activities created between 1 January 2006 
and 31 December 2020 in all ZFU -TEs. These measures are  also applicable, within the limits of the 
de minimis regulations , to activities already engaged in before 1  January 2006 in the new ZFU -TEs 
established by the Law on equal opportunities. Activities created in "first generation" and "second 
generation" ZFU -TEs between 1  January and 2 April 2006 may be placed under the regime provided 
for in Article 44 octies  of the CGI or in that provided for in Article 44 octies A of the Code.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Article 44 octies  of the CGI : Exemption from profits tax for five years, then a reduction of 60%, 40% 
and 20% for the first, second and third 12 -month periods following the exemption period. For 
enterprises with less than five employees, a reduction of 60%, 40% and 2 0% for the first five, the 
sixth and seventh, and the eighth and ninth 12 -month periods following the exemption period.  
 
Exempt profits may not exceed EUR 61,000 per taxpayer, per 12 -month period.  
 
In the "first generation" ZFU -TEs, the exemption is subjec t to compliance with Commission 
Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the 
Treaty to de minimis  aid for concessions granted up to 31 December 2013, and to compliance with 
Commission Regulation (EU) No 1 407/2013 of 18 December 2013 on the application of Articles 107 
and 108 of the Treaty on the Functioning of the European Union to de minimis  aid for concessions 
granted as of 1 January 2014. As regards taxpayers engaging in or creating an activity in one o f the G/SCM/N/343/EU/Add.10  
 
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  "second generation" ZFU -TEs before 1 January 2004 or the concessions granted after 1  January 
2007, eligibility for exemption is also subject to compliance with the regulations on de minimis  aid. 
Note: This measure provided for by Article 44octies  of the CGI was terminated  on 3 April 2006. It 
continues to apply for the time remaining for the enterprises that were beneficiaries on that date.  
Article 44 octies  A of the CGI : Exemption from profits tax for five years, then a reduction of 60%, 
40% and 20% f or the first five, the sixth and seventh, and the eighth and ninth 12 -month periods 
following the exemption period, whether the enterprise employs five or more employees (Note: for 
activities created as of 1 January 2015, the reduction period has been lowe red to 36 months).  
 
Exempt profits may not exceed EUR 50,000 per taxpayer, per 12 -month period, increased by 
EUR 5,000 for each new employee hired as from 1  January  2015 who is domiciled in an urban policy 
priority neighbourhood  or a ZFU -TE and is employed full -time for a period of at least six months.  
 
Eligibility for exemption is subject to compliance with Commission Regulation (EU) No 1407/2013 of 
18 December  2013 on the application of Articles 107 and 108 of the Treaty on the Functionin g of 
the European Union to de minimis  aid. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other)  
Enterprises engaged in industrial, commercial, cra fts or non-commercial activities, for new or 
existing activities established in ZFU -TEs. 
- Allocation mechanism : By operation of law.  
Conditions  – Enterprises must carry out an actual activity in a ZFU -TE and must be physically 
established there, with operat ing resources for the activity engaged in. In the case of non -sedentary 
activity established in a ZFU -TE but carried out entirely or partially outside of that zone, the activity 
is assumed to be carried out within a ZFU -TE when at least one sedentary full -time employee carries 
out his/her work within the premises located in a ZFU -TE set aside for the activity, or when the 
enterprise realizes at least 25% of its turnover through clients located in the ZFU -TE. 
 
As for the 41 "second -generation" ZFU -TEs, new c onditions have been established by Law 
No. 2003-1312 of 30 December 2003 regarding payroll numbers, turnover or balance sheet total, 
holding of capital when the enterprise has been set up as a company, and the enterprise's sector of 
activity. The condition s regarding payroll numbers and the holding of capital were relaxed by Law 
No. 2005 -32 of 18 January 2005 on planning for social cohesion.  
These conditions also apply to the new "third -generation" ZFU -TEs created by Law No.  2006-396 of 
31 March 2006.  
An additional condition has been established for enterprises with at least one employee that have 
set up activities in a ZFU -TE between 1 January 2012 and 31 December 2014: Article  44octies  A of 
the CGI provid es that exemption from profits tax is subject to eligibility for the exemption from social 
charges laid down in Article 12 of Law No. 96 -987 of 14 November 1996 concerning implementation 
of the Urban Regeneration Pact.  
Note: New conditions relating to empl oyees, in particular a local hiring clause, are envisaged for 
activities created in ZFU -TEs as of 1 January 2015. For activities created in ZFU -TEs as of 
1 January  2016, eligibility for exemption is subject to the existence, at 1 January of the year of 
establishment, of the city contract provided for in Article 6 of Law No. 2014 -173 of 21 February  2014 
on town planning and urban cohesion.  G/SCM/N/343/EU/Add.10  
 
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  6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
- Article 44 octies : 
Total amount for  2017 = EUR 32 million.  
Estimated total amount for 2018 = not available . 
- Article 44 octies  A: 
Total amount for 2017 = EUR 182 million.  
Estimated total amount for 2018 = EUR 184 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
Article 44 octies : Five years of total exemption, followed by a degressive reduction of 60%, 40% and 
20% over three or nine years (depending on whether the enterprise employs less or more than 
five employees). These measures are no longer applicable to the creation of activ ities from the day 
after the date of publication of Law No. 2006 -396 of 31 March 2006 on equal opportunities, 
i.e. 3 April 2006.  
 
Article 44 octies  A: Five years of total exemption, then a degressive reduction of 60%, 40% and 20% 
over nine years (reduced to  three years for activities created as of 1 January 2015).  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
- Article 44 octies : 
Around  4,000 beneficiary enterprises in 2017.  
- Article 44 octies  A: 
Around  17,150 beneficiaries in  2017.  
3  RESEARCH AND DEVELOP MENT ( R&D) SCHEMES  
3.1  Calls for projects - "Support for and transformation of sectors " 
1. Period covered by the notification  
2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To support projects  aimed at increasing the competitiveness of French strategic sectors through 
innovation, in order to ensure the sustainability of the industrial system and  to meet market needs, 
while promoting consideration of the ecological and energy transition.  
3. Legal basis (reference, date ) 
Aid schemes  Nos X64-2008, X65 -2008, X66 -2008, X68 -2008 and N623/2008.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
The financing is mixed, as it comprises subsidies and repayable advances.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries : Small and medium -sized enterprises (SMEs) and mid -cap enterprises from a sector : G/SCM/N/343/EU/Add.10  
 
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  - creation of shared industrial units or shared service platforms;  
- pooling  of technical expertise ; 
- implementation of collaborative tools , etc. 
Conditions: Total cost of project must be greater than EUR 3 million, or the project must request  
public aid exceeding EUR 2 million.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Average amount for  2018:  EUR 50 million . 
7. Duration of the subsidy and/or any other time -limits atta ched to it  
Start of implementation in 2018.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
3.2  Innovation aid for SMEs  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or  aid scheme ) 
To help enterprises develop a research and development and innovation (R&D&I) project or  carry 
out an R&D&I project with or without collaboration.  
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Subsidy , repayable advance, loan.   
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
Beneficiaries  – SMEs  and mid -cap enterprises with a workforce of less than  2,000 persons  (by way 
of derogation for mid -cap enterprises with fewer than 3 ,000 persons ). 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit  in the previous year ) 
Amounts paid for  2017:  
- EUR 91 million for financing in the form of subsidies;  
- EUR 133 million for financing in the form of repayable advances ; 
- EUR 220 million for financing in the form of interest -free loans for innovation.  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
2,550 beneficiary enterprises in 2017.  G/SCM/N/343/EU/Add.10  
 
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  3.3  French tech  grant  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
This measure allows for entrepreneurs  initiating projects to cover up to 70% of their expenses. It 
also provides support for start-up projects with high growth potential based on an innovation . 
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan,  tax concession, etc .) 
Aid granted in the form of a subsidy.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Young enterprises  (registered in  France less than one year previously ) with real 
growth potential, which meet the European definition of a small enterprise  (an enterprise with fewer 
than 50 persons and a turnover or total balance sheet of less than EUR  10 million ). 
Entrepreneurs who are natural persons, provided that they are  supported by a n establishment  
(public or private) dedicated to fostering innovative projects or start -ups.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possib le, the average subsidy per unit in the previous year ) 
Amount for  2017: EUR 18.9 million.  
Amount for  2018:  EUR 20 million.  
Average subsidy per unit i n 2017: EUR 26,961. 
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
701 subject s supported  in 2017. 
3.4  World Innovation Competition/Innovation Competition  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the  subsidy (or aid scheme ) 
To foster talent and future champions of the French economy through the identification of such talent 
and future champions, and the provision of support for the growth of French or foreign entrepreneurs 
with an innovation project t hat has particularly strong potential for the French economy.   
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  G/SCM/N/343/EU/Add.10  
 
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  4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidies  (2/3) and repayable advances  (1/3).  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries : French enterprises, foreign  enterprises wishing to set up in France, and consortiums 
(laborato ries, research facilities  or any structure carrying out or co ordinating R&D work).  
Conditions: Beneficiaries must p ropose an eligible base of work amounting to at least  EUR 2 million.   
Aid may only be granted under a contract with an enterprise registered in the French commercial 
register , and only work carried on French territory may benefit from public support.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous  year) 
Amount for  2017: EUR 23,699,587. 
Average amount per unit in 2018: EUR 605,000. 
7. Duration of the subsidy and/or any other time -limits attached to it  
The submission of applications ended on  15 February  2017 for the World Innovation Competition, 
which was replaced by the Innovation Competition.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
30 proje cts selected in  2017 ( World Innovation Competition ). 
89 projects selected in  2018 ( Innovation Competition ). 
3.5  National comp etition to support  start -ups (I-LAB)  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To foster projects for the creation of start -ups for innovative technology  resulting from public 
research, and to support the best projects through financial aid and tailored  assistance . 
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficia ries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries and conditions  – Developers  of project s for an enterprise that has not yet been 
created or project s for an enterprise established for less than  two years  may apply . The projects, 
regardless of their stage of development, must provide for the creation of an enterprise on French 
territory and involve an innovative technology.   G/SCM/N/343/EU/Add.10  
 
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  6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Total amount paid for 2017: EUR 11.9 million . 
Total amount paid for 2018: EUR 13.7 million . 
Maximum amount per unit : EUR 600,000. 
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
62 beneficiaries in  2017.  
64 beneficiaries  2018.  
3.6  Industrial Agreement for Training through Research (CIFRE)  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
Scheme for the  financing of theses that helps enterprises to hire doctoral stu dents 
(three -year collaboration between an enterprise, a research  laboratory and a master's degree 
graduate ). 
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficiarie s of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Any enterprise, association or local entity  established on French territory, 
regardless of size or sector.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the prev ious year ) 
Total amount paid for 2017: EUR 52.8 million . 
Amount intended for  2018: EUR 54.8 million . 
Payment over a three -year period of an annual flat -rate grant of EUR 14,000 to the enterprise . 
7. Duration of the subsidy and/or any other time-limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
3.7  Tax credit for research (CIR)  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To support the research and development (R&D) activities of enterprises.  G/SCM/N/343/EU/Add.10  
 
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  3. Legal basis (reference, date ) 
Article 244 quater  B of the CGI. 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax credit for R&D expenditure incurred by ent erprises. The rate of the tax credit is 30% for the 
portion of research expenditure of up to a ceiling of EUR 100 million , and 5% for the portion of 
research expenditure exceeding this ceiling.   
The rate of the tax credit for research is 50% for the portio n of research expenditure of up to a 
ceiling of EUR 100 million incurred in enterprises located in the French Overseas Departments.  
Entitlement to this increased rate is subject to compliance with Article 15 of Commission Regulation 
(EU) No 651/2014 of 17 June 2014 regarding regional operating aid . 
Specific account is taken of e xpenditure on subcontracting to public bodies . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  and conditions: any industrial, commercial or agricultural enterprises taxed on the 
basis of their actual profit or exempted . 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous year ) 
Total amount for  2017: EUR 6100 million . 
Estimated total amount for 2018: EUR 6000 million.  
7. Duration of the subsidy and/or any other time -limits attached to it  
No time -limit. 
8. Statistical data permit ting an assessment of the trade effects of the subsidy  
 
Around  22,993 beneficiary  enterprises in 2017.  
3.8  Enterprise Competitiveness Fund (FCE) 
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To promote research and development in enterprises.  
3. Legal basis (reference, date ) 
Aid scheme No. N 2672007.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculatio n method and conditions ) G/SCM/N/343/EU/Add.10  
 
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  6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount for  2017: EUR 30 million. 
Amount for  2018: EUR 24 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
The aid has no effect on trade as it is linked to the enterprise's research activity and not to its 
production or commercial capacity. This is a general and non -specific fiscal measure which is not 
regarded as State aid by the French authorities.  
3.9  National Digital Society Fund (FSN) 
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
The National Digital Society Fund (FSN) brings together  several initiatives  promoting digital 
technology , including the FSN SAR ( Repayable Advance and Subsidy)  and calls for projects (Digital 
Innovation Competition, Great Digital Challenges , etc.) , with the aim of develop ing new innovative 
uses, services and digital content, and generic digital technologies and applications. This competition 
for excellen ce is aimed at innovative projects that use digital technology to develop a new product 
or service  that provides a breakthrough in terms of its content, implementation method or economic 
model, or the experience offered . 
3. Legal basis (reference, date ) 
Aid scheme No. SA.33615.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – enterprises, research facilities  and associations.   
Conditions  – The basis of the aid consists of the internal and external expenditure directly related 
to the industrial research and experimental development work of the project at the following 
maximum rates: up to  100% for public research bodies (marginal  costs) and up to 50% for 
enterprises.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount paid in 2017: EUR 127 million.  
Estimated amount for 2018: EUR 120 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  G/SCM/N/343/EU/Add.10  
 
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  3.10  Single Interministeria l Fund (FUI) 
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To support applied research projects related to the development of products, methods or services 
likely to be placed on the  market in the short or medium term, within the three or five from the end 
of the R&D programme.  
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Beneficiaries  – Enterprises  located in France, laboratories, research facilities , training centres or 
establishments carrying out R&D work.  
Conditions – The basis of the aid  comprises  internal and external expenditure directly linked to the 
industrial research and experimental development work of the project.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (ind icating, if possible, the average subsidy per unit in the previous year ) 
Amount of  commitment appropriations made in 2017: EUR 65 million . 
Amount of  commitment appropriations made in 2018: EUR 27 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
Average duration of agreement with Bpifrance: Six years . 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
402 beneficiaries in  2017.  
160 beneficiaries in  2018.  
Since 2005, the calls for projects made by the Single Interministerial Fund (FUI) – Regions, aimed 
at competitiveness clusters , have allowed for the provision of support to 1816 projects , for a total 
R&D expenditure of almost EUR 7.5 billion,  public financing amountin g to EUR 3 billion, of which 
over EUR 1.7 billion was government  funding . 
SMEs  receive 50% of the subsidies provided by the FUI and coordinate over 45% of the projects 
supported.  
Since 2005, the clusters have had an increasing impact on the hiring of R&D staff : on average, each 
enterprise that is a member of the clusters gained  2.4 additional staff members in 2007 and 5.9 in 
2012, compared with the control group.  
In comparison with enterprises which have s imilar profiles and which are not members of  the 
clusters, the enterprises in the clusters significantly increase d the self -financing of their R&D 
activities, that is, in addition to the public aid (direct and indirect) received : for each publicly  funded 
euro invested, these enterprises invested two additional euros in their R&D projects, from their own 
funds.  G/SCM/N/343/EU/Add.10  
 
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  3.11  Technological Research Institutes   
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid sch eme) 
To improve the competitiveness and the structuring of powerful and effective ecosystems through 
the creation of eight technological research institutions which combine public and private research.  
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
6. Subsidy per unit or, in cases where this is not possible, the total amount or t he annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
EUR 2 billion  (EUR 1.5 billion in the form of a non-consumable allocation , and EUR 500 million in the 
form of a consumable allocation)  over a period of ten years, representing an annual amount of 
EUR 200 million for 2017 and 2018.  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
3.12  Energy Transition Institutes  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To create leading technological innovation campuses in the field of new energy technologies , bringing 
together ente rprises and laboratories. The Energy Transition Institutes aim to establish a limited 
number of technological innovation campuses with the potential to achieve global prominence in the 
energy and climate sectors. Nine Energy Transition Institutes  have been  established .  
3. Legal basis (reference, date ) 
Aid scheme No. SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
EUR 1 billion  (75% in non -consumable allocations and 25 % in consumab le allocations ) over a period 
of ten years , representing an average annual amount of EUR 100 million for 2017 and 2018.  G/SCM/N/343/EU/Add.10  
 
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  7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
3.13  Young Innovative Enterprises  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To help create innovative enterprises.   
3. Legal basis (reference, date ) 
Article 44 sexies  A of the CGI . 
Aid scheme No.  SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax and social benefits . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Indepe ndent SMEs established for less than eight years, of which the research 
expenditure represents at least 15% of their  tax-deductible costs . 
Conditions – Tax relief for: 
• Income tax or corporation  tax: 
o total exemption for the first financial year (or the first qualifying  tax period ); 
o followed by a 50% reduction on profits for the subsequent period or financial year.  
• The territorial economic contribution (company land contribution ( CFE) and company 
value -added contribution (CVAE) ) and property tax for seven years, with the agreement of 
the local authorities . 
Exemptions from employers' social security contributions for researchers, technicians, project 
managers, lawyers in charge of industrial protection an d technology agreements related to the 
project, and staff members responsible for pre -competitive tests who are assigned to R&D or 
innovation -related  work.   
At the end of each financial year, the enterprises must have incurred R&D expenditure of at least 
15% of the tax -deductible expenses for that financial year, with the exception of expenses incurred 
in connection with other Young Innovative Enterprises carrying out R&D projects . 
Eligibility for  the tax aid is subject to compliance with Commission Regulation (EU) No  1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid. 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount of social exemptions in  2017: EUR 191 million . 
Amount of tax exemptions in 2017:  EUR 11 million.  
Amount of social exemptions in 2018: EUR 224 million.  G/SCM/N/343/EU/Add.10  
 
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  Amount of tax exemptions in 2017: EUR 11 million.  
7. Duration of the subsidy and/or any other time -limits attached to it  
Enterprises created before 31 December  2019.  
3.14  Shared innovation p latforms   
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To provide open access to shared resources (equipment, staff and related services), primarily for 
members of the certification  competitiveness cluster/s, and particularly for SMEs . 
3. Legal basis (reference, date ) 
 
Aid scheme No. SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy and a minority share in the shared innovation platforms selected  at the end of  the call for 
projects.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Any enterprise within a region  (especially SMEs ), particularly public and private 
members of competitivene ss clusters (research centres, universities, enterprises).  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
EUR 14.5 million was allocated to the three platforms selected  (IMPROVE in Picard y, Rovaltain 
Research Company in Rhône -Alpes, and Inoysis in Provence -Alpes -Côte d'Azur).  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Three platforms implemented in 2014.  
3.15  Competitiveness clusters – "Category B missions"  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To increase the competitiveness of enterprises through innovation.  
3. Legal basis (reference, date ) 
Aid scheme No.  SA.40391.  G/SCM/N/343/EU/Add.10  
 
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  4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- Beneficiarie s – competitiveness clusters (associations).  
- Conditions – The basis of the aid consists of personnel and administrative costs related to 
"innovation cluster" activities in accordance with the General Block Exemption Regulation (GBER) 
(development of projects, coordination  of the community of members , etc.).  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budget ed for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Amount for  2017: EUR 4.2 million . 
Amount for  2018: EUR 4.2 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
Agreement covering a two -year period.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
- Over 10,000 member enterprises of which 87% are micro, small and medium -sized 
enterprise s. 
- 1,300 research and training bodies.  
Since 2005, the clusters have had an increasing impact on the hiring of R&D staff: on average, each 
enterprise that is a member of the clusters gained  2.4 additional staff members in 2007 and 5.9 in 
2012, compared with the control group.  
In comparison with  enterprises which have similar profiles and which are not members of  the 
clusters, the enterprises in the clusters significantly increase d the self -financing of their R&D 
activities, that is, in addition to the public aid (direct and indirect) received: f or each publicly  funded 
euro invested, these enterprises invested two additional euros in their R&D projects, from their own 
funds.  
3.16  Regional and local community  programmes  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
Regional and local community  programmes may be incubators, regional seeds funds or calls for R&D 
projects. Currently, 89 R&D support schemes are being piloted by the regions.  
3. Legal basis (reference, date ) 
Aid schem e No. SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Subsidy. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
- G/SCM/N/343/EU/Add.10  
 
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  6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Average annual amount:  EUR 100 million  (for 2017 and 2018).  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
3.17  Structuring programmes for competitiveness  
1. Period covered by the notification  
 
2017 and 2018.  
2. Policy objective and/or purpose of the su bsidy (or aid scheme ) 
 
To support structuring collaborative R&D projects aimed at creating economic and technological 
benefits in the form of new products, services and technologies, and indirect benefits in terms of the 
sustainable structuring of sectors.  
3. Legal basis (reference, date ) 
Aid scheme No. SA.40391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Subsidy and repayable advance depending on the risks associated with the projects . 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Enterprises located in France, laboratories, research facilities and training centres; 
establishments carrying out or coordinating R&D work.  
6. Subsidy per unit or, in cases where thi s is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Total net amount of aid committed in  2017: EUR 126,871,170. 
Average amount per unit in  2017: EUR 10 million . 
7. Duration of the subsidy and/or any other time -limits attached to it  
The eight call for projects was issued on 18 February 2019 and will end on 14 January  2020.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
13 projects selected in 2017.  
3.18  National Research Agency (ANR)  
1. Period covered by the notification  
2015 and 2016.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
- To create new partnerships between public research and industrial research.  
- To launch projects in new fields of research and technology.  
- To foster the development of research and the transfer of technology in the regions.  G/SCM/N/343/EU/Add.10  
 
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  3. Legal basis (reference, date ) 
Agreement of 7 February 2005 establishing the Nation al Research Agency Public Interest Group 
(GIP ANR).  
 
Decree No. 2006 -963 of 1 August 2006 relating to the organization and operation of the National 
Research Agency (ANR).  
 
Decree No. 2014 -365 of 24 March 2014 amending Decree No. 2006 -963 of 1 August 2006 on the 
organization and operation of the National Research Agency (ANR).  
 
Decree No. 2002 -178 of 13 February 2002 relating to State subsidy rates for investment projects 
and the corresponding advances.  
 
4. Form of the subsidy (i.e. grant, loan, tax concess ion, etc .) 
- Subsidy (grant) appearing on the green list (Article 8.2(a)) and representing a maximum of 50% 
of the total cost of the programme for enterprises. In certain cases, governed by Decree 
No. 2002-178 of 13 February 2002, direct government aid may  amount to 100% of subsidizable 
expenditure (associations, foundations, public interest groups – GIP). 
- All enterprises and public bodies engaged in fundamental research work or pre -competition 
development activities may apply under the same conditions.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries (who receives the subsidy, the producer, the exporter, other)  
 
The ANR is not intended to provide aid to enterprises, but to support research projects th rough calls 
for projects. A total of 37 calls for projects were launched in 2015, compared to 34 in 2016.  
 
In 2015 and 2016, 6.1% and 8.43% of the grants went to enterprises. Overall, 92.2% of the grants 
go to public enterprises (research institutions, uni versities, engineering schools, etc.).  
 
The distribution of grants by type of beneficiary has hardly changed since the creation of the ANR in 
2005.  
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgete d for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Commitments made following the ANR's calls for projects:  
 
2015: EUR 390.2 million, including EUR 46.3 million allocated to enterprises;  
2016: EUR 457.6 million,  including EUR 31.9 million allocated to enterprises.  
7. Duration of the subsidy and/or any other time -limits attached to it  
Permanent arrangement.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
The projects in question are part of the upstream phase of the R&D process. The subsidies have no 
measurable impact on the trade performance of the enterprises involved. Only scientific and 
technical content is considered in the selection and evaluation of projects. This is general, 
non-specific aid within the meaning of the Agreement. The aid is notified strictly in the interests of 
transparency.  G/SCM/N/343/EU/Add.10  
 
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  3.19  Framework scheme No. SA.40391 for aid for research, development and innovation  
1. Period covered by the notification  
2015 and 2016.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
In 2014 the European Commission amended the rules governing member State intervention for the 
period 2014 -2020. Under this revised framework, aid scheme No. SA.40391, which incorporates 
under one umbrella the research, development and innovation schemes notified for the 
period  2013-2014 (technology research institutes and institutes for energy transition, the fund for 
enterprise competitiveness, the OSEO innovation aid scheme  for research, development and 
innovation, aid for innovation in the shipbuilding industry, shared innovation platforms, young 
innovative enterprises), entered into force on 1 January 2015.  
 
The aim of the scheme is to finance research and development proj ects, upstream market research 
facilities and the dissemination of innovation in favour of SMEs or ecosystems.  
 
3. Legal basis (reference, date ) 
Aid scheme No. SA.41391.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
- Subsidy (grant), repa yable advance, loan, guarantee, exemption from social charges.   
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
SMEs and large enterprises. Rates of support range from 25% to 70% of the project's eligible 
amount, depending on proximity to market and enterprise size. The smaller the enterprise and the 
further the activity is away from the market, the higher the possible rate of support.  
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Commitments made for 2015: EUR 1,849.7 million;  
Commitments made for 2016: data not yet available.  
 
7. Duration of the subsid y and/or any other time -limits attached to it  
1 January 2015 to 31 December 2020.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
A plan to evaluate the implementation of this aid scheme will be published in 2020 to ident ify the 
positive externalities generated by the support provided.  
 
3.20  Support for institutions engaged in research for the sustainable development of air 
transport  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective  
The main purpose of these subsidies is to help a number of public research institutions to provide 
the public with the scientific knowledge needed for a better understanding of the mechanisms of 
interaction between air transport and the environment (climate, altern ative fuels, icing).  
 G/SCM/N/343/EU/Add.10  
 
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  3. Legal basis  
Annual Finance Law.  
 
Aid scheme No. SA.47101.  
4. Form of the subsidy  
Non-repayable subsidy.  
 
5. Beneficiaries of the aid and allocation mechanism  
Research bodies  (mainly  ONERA)  
6. Total amount  
In 2017: EUR 0 million . 
In 2018: EUR 5.6 million . 
7. Duration of the subsidy  
Permanent scheme funded on an annual basis under the Finance Law.  
 
8. Statistical data  
The entities concerned are non -profit -making.  
 
3.21  Support for innovation and the sustainable development of air transport  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective  
The overall objective of the research is to develop knowledge which improves the technological base 
in order to enhance the environmental performance of a ir transport.  
 
The research involves improving the understanding of phenomena with a view to selective further 
investigation in areas likely to yield gains in performance and in calculation accuracy with a view to 
shorter design cycles, as well as full -size testing.  
 
3. Legal basis  
Annual Finance Law.  
 
Aid scheme No. SA.47101.  
4. Form of the subsidy  
Non-repayable subsidy intended to finance part of the cost of several previously selected research 
operations.  
 
5. Beneficiaries of the aid and allocation mechanism  
68 single beneficiaries  (small and medium -sized enterprises, mid -cap enterprises, major groups, 
laboratories , academi cs) were involved in 2017 and 2018.   G/SCM/N/343/EU/Add.10  
 
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  6. Total amount  
In 2017: EUR 8.1 million .  
In 2018: EUR 131.6 million . 
7. Duration of the subsidy  
Permanent arrangement funded on a yearly basis under the Finance Law.  
 
8. Statistical data  
The aid goes entirely to research and therefore has no bearing on product manufacture.  
 
4  SECTORAL SCHEME S 
4.1  AID FOR SMES  
4.1.1   Tax credit for innovat ion (CII)  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To support the design and production of a prototype or pilot installation of a new product with a 
technically superior performa nce, functions, ergonomics or eco -design compared with products 
marketed by competitors at the time of the start of the work.  
3. Legal basis (reference, date ) 
K of II of Article 244quater B of the CGI . Aid scheme No.  SA.40390.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
Tax credit at a rate of 20% based on the expenses required for the design and/or production of 
prototypes or pilot installations of a new product. These expenses form the basis of the tax credit 
for research  (CIR). The tax base is capped at EUR  400 000 per year per enterprise.  
Entitlement to the tax credit for innovation is subject to compliance with Articles 2, 25 and 30 and 
Article 28(1), (a), (2) and (3) of the General Block Exemption Regulation (GBER) (research and 
development and innovation aid for SMEs ). 
A higher rate is provided for operations  in areas with a geographical disadvantage resulting in a 
market failure with regard  to innovation. The rate of tax credit for innovation is 40% for expenses 
incurred in operations  in the French Overseas Departments. Entitlement to this higher rate is subject 
to compliance with Article 15 of the GBER regarding regional operating aid.   
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
Beneficiaries  – Industrial, commercial, crafts  and agricultural SMEs  taxed in France . 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the  annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Total amount for  2017: EUR 157 million.  
Estimated total amount for 2018: EUR 161 million . G/SCM/N/343/EU/Add.10  
 
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  7. Duration of the subsidy and/or any other time-limits attached to it  
The measure is not subject to a time -limit. 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
See tax credit for research ( CIR). 
4.1.2   Ultra -High -Speed Broadband Plan  for France / National Digital Society Fund (FSN)  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
To ensure ultra -high-speed broadband coverage for the entire French territory by 2022.  
3. Legal basis (reference, date ) 
Aid scheme No.  SA.37183.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
6. Subsidy per unit or, in cases where this is not possible, the total amount or t he annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
EUR 101.6 million paid in  2017.  
EUR 154.2 million paid in  2018.  
7. Duration of the subsidy and/or any other time -limits attached to it  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
4.1.3   Tonnage -based tax scheme  
1. Period covered by the notification  
2017 and 2018.  
2. Policy objective of the aid scheme  
To enable enterprises operating in the maritime transport sector to meet international competition 
and maintain high safety levels with regard to ships and navigation.  
3. Legal basis  
Article 209 -0 B of the CGI deriving from Article 19 of Amending Finance Law for 2002 No. 2002 -1576 
of 30 December 2002, as a mended by Article 47 of Amending Finance Law for 2005 No. 2005 -1720 
of 30 December 2005, by Article 80 of Amending Finance Law for 2006 No. 2006 -1771,  Article 75 
of Amending Finance Law No.  2014-1655 of 29 December 2014, and by Article 34 of Finance Law 
for 2019 No. 2018-1317 of 28 December 2018.  
4. Form of the aid  
Under this arrangement, the tax due as a result of operations directly linked to the use of certain 
ships (whether fully or jointly owned, or chartered on a bareboat or time basis) can be determined  G/SCM/N/343/EU/Add.10  
 
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  on a flat -rate basis. The flat rate is computed using a scale applied to each eligible vessel according 
to its net tonnage and increased, where appropriate, by certain amounts . 
5. Beneficiaries of the aid and allocation mechanism  
- Beneficiaries  – Enterprises subject to corporation tax, at least 75% of whose turnover is 
generated by the operation of merchant vessels  (including enterprises that are members of a group 
specified in Article  223 A or Article 223 A bis of the CGI , provided that all the en terprises in the 
group that are eligible for the tonnage -based tax choose this scheme ). 
- Allocation mechanism  – Upon option by the enterprise (or the group of enterprises eligible for 
the tonnage -based tax, as part of a tax group) made for an irrevocable pe riod of ten years renewable 
at the end of that period.  
- Conditions – Option for the tonnage -based tax scheme is valid only if the percentage of net 
tonnage shipped by the enterprise under the flag of a member State of the European Union or the 
European Econ omic Area amounts to at least 25% at the date of commencement of the first period 
of implementation of the scheme and if, during the scheme's implementation period, the enterprise 
undertakes to maintain or increase the percentage of net tonnage shipped und er the flag of a 
member State of the European Union or the European Economic Area at the date of commencement 
of the first period of implementation of the scheme.  
Non-compliance with the requisite percentage of no less than 25% of the net tonnage carried b y 
ships sailing under the flag of an EU or EEA member State at the date of commencement of the first 
period of implementation of the tonnage -based tax scheme renders the option null and void.  
 
In the event of non -compliance with the undertaking to maintain  or increase the percentage carried 
by EU - or EEA -flagged ships for a specific  financial year, and subject to exceptions, ships not sailing 
under the flag of an EU member State whose tonnage has reduced the percentage of net tonnage 
under the flag of an EU  member State are not eligible for the tonnage -based tax scheme for that 
financial year. Exclusion is not definitive: these ships may benefit from the scheme for subsequent 
financial years, if the enterprise complies with  its undertakings  once again.  
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year ) 
Total amount for  2017: EUR 40 million . 
Estimated total amount for 2018: unavailable . 
7. Duration of the subsidy and/or any other time -limits attached to it  
No time -limit. 
__________