Innovation Authority Grant Support

The gap most companies discover too late

Companies invest enormous effort in the application stage and treat the reporting as a formality. In practice it is the other way round: the application sets the ceiling, the reporting sets the amount. An expense not recognised in the audit simply comes off the grant — even if it was genuinely incurred, and even if the programme succeeded.

Expenses usually fall not because they are not real, but because they do not meet the Authority's recognition rules: a payment made too late, equipment not recorded as required, a subcontractor above the cap, or a line item that exceeded the budget-flexibility limits without prior approval.

What we do

• Support with the application — building a budget that is executable and reportable, not merely approvable;
• Setting up the programme's financial system — cost separation, cost centres and time recording, so the report builds itself rather than being reconstructed after the fact;
• Periodic performance reports — prepared and filed on time;
• The CPA audit of the financial report that the Authority requires alongside it;
• Handling queries and objections with the Authority after submission;
• Royalties — calculation, reporting and support with the repayment obligation over the product's life.

We check the report against those rules before it is submitted — systematically, line by line. A deviation we find can be corrected or explained; a deviation the Authority finds has already reduced the grant.

Why us

The hi-tech and encouragement-laws practice at our firm is led by CPA Amir Gonen — former Head of the Tax Division at the Israel Innovation Authority. He was on the side that sets the rules and applies them, accompanied companies through complex processes with the Authority, and helped develop tax tools for Israel's hi-tech industry.

What that means in practice: we know in advance what will be examined and how the report will be read — rather than learning it from the audit findings.

← CPA Amir Gonen's profile

And the tax dimension, which should not be separated

An Innovation Authority grant does not stand alone. It meets the Encouragement Law benefits, the R&D tax credit track, and questions of income classification and capitalisation of development costs. A company that treats the grant in isolation from the tax picture may pay for it later.

← Read our full guide: Innovation Authority grants — tracks and eligibility

← Read our full guide: the R&D tax credit track

The information on this page is general and does not constitute professional advice. Recognition rules, caps and deadlines are set in the Innovation Authority's procedures and are updated from time to time — the version in force at the time of the programme must be checked.