CIR report: make sure you write down the scientific barriers
A company subject to a CIR tax audit is judged on the basis of the complete CIR report (administrative, financial and scientific) sent to the tax authorities.
It is the scientific report that will determine whether the project is, in principle, eligible for the CIR. On the one hand, the increase in the level of knowledge must be demonstrated by the state of the art, for which we have provided you with our drafting advice. Secondly, the R&D work must involve resolving scientific uncertainties and/or technological barriers.
Contrary to popular belief, for the tax authorities, a good description of the technological barriers is more important than the results achieved by the R&D project.
Definition: scientific or technical challenges according to the CIR guide
According to the Crédit Impôt Recherche (CIR) guide, a scientific or technical barrier is defined as an obstacle to be overcome in a scientific process. It is a problem or uncertainty for which there is no solution in the current state of available knowledge.
The main aim of R&D eligible for the CIR is to remove these scientific or technical barriers. To be considered as such, the lock must be sufficiently complex to require a rigorous and methodical scientific approach.
This definition emphasizes the importance of innovation and research in solving complex technological problems. Companies that invest in unlocking such barriers are eligible for the CIR.
Scientific or technical barriers?
To understand the distinction between scientific and technical barriers is necessary in the context of the CIR. A scientific lock is a barrier that blocks the progress of a research and development (R&D) project requiring a new scientific or technological solution. It represents a major uncertainty, linked to a lack of knowledge or existing solutions.
A technical lock, on the other hand, refers to a more specific obstacle, linked to the practical aspects of implementing a technology or method. It can be overcome by applying non-standard techniques.
In the context of the CIR, the identification of scientific barriers is of paramount importance. This is what determines the innovative nature of the project, and therefore its eligibility for the CIR. Technical challenges, while not negligible, do not have the same impact on CIR eligibility.
Categories and examples of several scientific locks
Scientific obstacles can be classified into different categories, each with its own characteristics and implications for the research project.
- Global scientific challenges are those that affect the entire R&D project. They are directly linked to the project's main objective, and require a global scientific approach to resolve.
- Specific scientific challenges concern particular aspects of the project. They require dedicated attention, but their resolution does not necessarily impact the project as a whole.
- Finally, unforeseen scientific obstacles arise during the course of the project. They are generally linked to unexpected technical problems or the emergence of new issues during the research process.
Each of these categories presents its own challenges and requires different strategies for solving them. It is crucial to identify and describe them thoroughly in the EIF scientific report.
Global scientific challenges
Global scientific challenges are the major obstacles to achieving the overall objective of an R&D project. They are generally linked to gaps in current knowledge or existing technological limitations.
These locks may concern various fields, such as :
- The absence of methods or technologies to achieve a specific objective.
- Challenges linked to the miniaturization or optimization of certain technologies
- The current limits of scientific knowledge make it difficult, if not impossible, to carry out certain stages of the project.
These challenges require significant R&D efforts to overcome, and their resolution is often a prerequisite for the success of the project as a whole.
Specific scientific challenges
Specific scientific challenges focus on the particular issues of the R&D project. Their resolution, while crucial for certain parts of the project, does not necessarily impact its overall objective.
These locks can affect items such as :
- Lack of products: the absence of a product that meets specific project requirements can be a barrier.
- Extending the approach to broader domains of business knowledge expression: for example, applying machine learning techniques to specific domains could represent a specific scientific challenge.
It is essential to clearly identify these specific obstacles and describe the research and development methodology used to overcome them.
Unforeseen scientific obstacles
Unforeseen scientific challenges often arise during the course of an R&D project, when unexpected technical problems arise or new issues arise. Unlike global and specific challenges, they are not initially identified during project planning.
- They may be linked to unanticipated technical challenges that call into question the feasibility of planned methods or processes.
- They can also result from unforeseen scientific discoveries that modify existing knowledge and require a reorientation of research.
- Sometimes they are linked to external issues, such as regulatory changes or supply constraints that affect the use of certain technologies or materials.
Dealing with these unforeseen issues requires a high degree of flexibility and adaptability, as well as a reactive and creative approach to problem-solving.
How do you remove a scientific lock and present it in your CIR scientific report?
To remove a scientific bottleneck, it must first be clearly identified. This means understanding the nature of the problem, where it comes from and why it represents an obstacle to the project's progress. Next, you need to design a scientific approach adapted to overcoming it. This may involve, for example, fundamental research, applied research or experimental development.
Once you have lifted the lock, you need to document this process in your CIR scientific report. You'll need to describe the lock, explain the process you followed to remove it, and show how this contributed to the progress of your project. Remember to link the lock to an absence of solution or a knowledge gap, leading to a state of the art, as recommended in the CIR guide.
Don't forget to :
- Precise description of the lock
- Explain the scientific process used to lift the lock
- Show the impact of lifting the lock on project progress
This documentation will enable you to prove the reality, complexity and novelty of your R&D work to the tax authorities, thereby increasing your chances of benefiting from the CIR.
Dynergie, a CIR-certified consulting firm
Do you have any questions or difficulties in drafting your technological locks as part of your CIR scientific report? You can contact us on our contact page. We are listed as a CIR-CII player by the Médiateur des Entreprises.
Useful links:
> Focus on the 2024 Finance Act: C3IV, JEI and other measures
> Reform of the CIR: deciphering the changes to be expected
> The reform of the JEI status in the 2024 Finance Law: what remains of the Midy report?
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Damien Villiers-Moriamé
I assist innovative companies of all sizes in their efforts to obtain public funding (CIR-CII, JEI, bpifrance, CIN, etc.). My technical knowledge intervenes in various fields such as IoT, AI, e-education, embedded systems or service robotics. My daily work consists in accompanying entrepreneurs on key and crucial steps of their projects (construction of Financing Plan, construction of Business Plan, validation of the economic model).