Crédit d'Impôt Recherche, CIR (French Research Tax Credit)
30% of your R&D expenditure refunded, up to €100M of eligible spend.
Young Innovative Company (JEI, JEU, JEC, JEII)
JEI status and its variants cut the charges borne by young companies that invest heavily in R&D. The rules have changed repeatedly: we work out which category fits you and secure how it applies.
In brief
Key figures
< 8 years
of age, for companies incorporated from 1 January 2023.
20%
of deductible expenses spent on R&D (JEI threshold).
< 250
staff, turnover < €50m or balance sheet < €43m.
7 years
of possible CFE (business property contribution) and property tax exemption, where the local authority so decides.
The scheme
What is it?
Young Innovative Company status is for recent SMEs whose activity rests on a significant research and development effort. It gives an exemption from employer social contributions on the pay of staff assigned to R&D and, where the local authority so decides, an exemption from the business property contribution (CFE) and from property tax.
The scheme has branched out. Alongside the JEI sit the Young University Company (JEU), whose main activity is commercialising research carried out in a higher education institution; the Young Growth Company (JEC), for companies whose R&D intensity is lower but which show a growth trajectory; and, since the 2026 finance act, the Young Impact Innovation Company (JEII), which pairs the JEC spending level with the criteria applied to young socially useful companies.
Thresholds, durations and the incorporation dates that open each benefit have been amended several times. Working out the right category, and the date each benefit expires, has become a job in itself.
The categories
JEI, JEU, JEC, JEII: which one fits you?
| Category | R&D intensity | Main benefit |
|---|---|---|
| JEI | At least 20% of deductible expenses | Exemption from employer social contributions on R&D staff; local tax exemptions where the authority so decides |
| JEU | Commercialising research carried out in a higher education institution | Same benefits as the JEI |
| JEC | Between 5% and 20%, with economic performance indicators set by decree | Same benefits, subject to growth conditions |
| JEII | Research spending at the JEC level, plus the criteria applied to young socially useful companies | Same benefits; category created by the 2026 finance act |
Eligibility
Are you eligible?
- Be an SME: fewer than 250 staff, turnover < €50m or balance sheet < €43m.
- Be under 8 years old at the financial year end. A company can qualify up to its eighth anniversary.
- Spend enough on R&D to reach the threshold for the category sought: 20% of deductible expenses for the JEI, 5% to 20% for the JEC and the JEII.
- Not have been created through a merger, a restructuring, an extension of activity or a takeover.
- Be held continuously, as to at least 50%, by individuals or equivalent structures.
Eligible base
What the benefits are in practice
R&D employer contributions
Exemption from employer social contributions on the pay of staff assigned to R&D work.
Business property contribution
Exemption possible for 7 years, where the local authority so decides.
Property tax
Exemption possible on premises used for the activity, for 7 years, where the authority so decides.
Young University Company (JEU)
Same benefits as the JEI, for companies whose main activity is commercialising research carried out in a higher education institution.
How we work with you
From qualification to defending the claim
Diagnosis & scoping
We identify the scope of your eligible projects and claimable costs, together with your technical teams.
Scientific qualification
We check that your work meets the tax authority's criteria: state of the art, technical barrier, experimental approach.
Valuation & calculation
We collect the accounting data and calculate your claim, line by line.
Technical justification
We write the scientific and financial file documenting every declared cost.
Filing & follow-up
We prepare the forms, support the filing and track the refund until it reaches your account.
Support during audits
We defend your file before the tax authority or the Ministry of Research experts.
Frequently asked questions
FAQ
JEI status gives an exemption from employer social contributions on the pay of staff assigned to R&D and, where local authorities so decide, exemptions from local taxes. It applies to recent SMEs making a significant R&D effort.
The JEI is for SMEs spending at least 20% of their deductible expenses on R&D. The JEU rests not on a spending threshold but on commercialising research carried out in a higher education institution. The JEC is for companies whose R&D intensity falls between 5% and 20%, subject to economic performance indicators. The JEII adds to that spending level the criteria applied to young socially useful companies.
It creates a new impact-focused category, the JEII, whose exact scope is still being settled. The rules here have changed recently, so contact us for an up-to-date reading.
JEI status is recognised for as long as the company meets the conditions, subject to a maximum age of under 8 years, whatever the year of incorporation. Local exemptions can run for 7 years where the local authority so decides.
The company must be held continuously, as to at least 50%, by individuals or equivalent structures (investment funds, other JEIs, recognised associations and foundations, and so on).
Yes, JEI and CIR work together. An SME can claim the JEI social exemptions and declare its eligible costs under the CIR.
There is no prior application: the company self-declares as a JEI and applies the exemptions. It can, however, request a formal ruling from the tax authority to secure that qualification.
Losing the qualification ends the exemptions for the financial year concerned. Tracking the thresholds every year is the way to avoid an unwelcome surprise.
Related schemes
Explore the other levers
Convention Industrielle de Formation par la Recherche, CIFRE (Industrial PhD Funding)
€42,000 of funding over three years to hire a PhD candidate on your R&D work.
Dossier BPI (Bpifrance Application) — Bpifrance Innovation Funding
Bpifrance grants, repayable advances and loans, from prototype to market launch.
Benjamin Chemoul & David Jian
Partners & chartered accountants
Information provided for guidance only, up to date as of 2 September 2026. It does not constitute tax advice.