Argentina's national science and technology promotion agency will make available tax credits totaling 40mn pesos (US$9.9mn) to promote innovation in companies, according to a release from the agency's parent entity, the science and technology ministry (Mincyt).
The credit will be granted through the federal government's technological fund, Fontar, with an objective of boosting local companies' innovative production capacity.
Of the total amount to be awarded through the tax credit, 13mn pesos will go to research and development (R&D) projects and 27mn pesos to technology modernization projects.
R&D projects can have a total cost of up to 3mn pesos, while the cap on technology modernization projects is 2.5mn pesos. The awarded tax credit cannot equal more than 50% of the project's total cost.
A similar tax credit was opened in 2010, and the agency approved 122 projects totaling 40mn pesos. The application for the 2011 tax credit will be open until April 20.