Name in original language
Crédit d'Impôt Innovation (CII)
Initiative overview
Introduced in 2004, the Jeune Entreprise Innovante (JEI) status and its more research-intensive variant Jeune Entreprise Innovante de Recherche (JEIR, introduced in 2022) offer a package of fiscal and social exemptions to qualifying French startups. To qualify as a JEI, a company must: be an SME under EU definition; be fewer than 8 years old; be independent; and spend at least 15% of total tax-deductible expenditure on qualifying R&D. JEIR requires 30% R&D intensity. Exemptions include: full exemption from employers' social security contributions on wages of researchers, technicians, and project managers involved in R&D (under certain ceilings); 100% corporation tax exemption in the first profitable financial year; 50% corporation tax reduction in the second profitable year; and exemptions from certain local business taxes (CFE and CVAE). From 1 January 2024, the social exemption is capped and tapered: full exemption applies for salaries up to 4.5 times the minimum wage (SMIC); and companies retain JEI status until the financial year they reach 8 years of age. The combined benefit can amount to several hundreds of thousands of euros per year for a typical AI deeptech startup with a significant R&D team. The JEI/JEIR regime is widely used by French AI startups and is actively promoted by Bpifrance as complementary to CIR. The current regime is extended until 31 December 2028.
