Hydrogen Tax Incentives under the Restriction of Special Taxation Act

In 2023, hydrogen technologies were designated as "National Strategic Technologies" besides their previous designation as "New Growth-Core Technologies". This status means they can access special R&D (Article 10) and investment tax incentives (Article 12). The R&D tax credit for National Strategic Technologies consists of two components: Base Rate: 40% for SMEs, 30% for non-SMEs (with a 3-year transitional rate of 35% for companies graduating from SME status). This also applies to equipment manufacturing and fuel cells provided they are classified as "new growth and core technologies" For general R&D expenses, companies can choose between an incremental credit (based on the amount exceeding the previous year's spending) and a proportional credit (based on the current year's total spending). However, the incremental option is restricted if the previous year's spending falls below the four-year average. 

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