Icelandic aid scheme on support for innovation companies approved.
The EFTA Surveillance Authority approved last week an Icelandic scheme for innovation companies. The objective of the scheme is to improve and foster research and development.
Under the scheme companies that carry out research and development projects can apply for a tax credit to the Icelandic Centre for Research (Rannís). The aid is limited to 20% of ISK 100 or 150 million of the project costs, irrespectively of whether the total project cost may be higher. The aid is granted as a reimbursement of the companies' paid income tax.
The Authority considers the scheme to be in line with its State Aid Guidelines on research and development and innovation. The projects covered by the scheme, the cost elements and the aid intensities meet the conditions set forth in the Guidelines. Therefore, the positive effects of promoting research and development outweighs the negative effects of the aid on competition.