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JEI, JEC and JEII schemes

JEI, JEC and JEII schemes are key French mechanisms supporting innovation-driven companies through social and tax advantages linked to R&D intensity, growth profile and impact strategy.

What are the JEI, JEC and JEII schemes ?

Created by the 2004 Finance Act, the Young Innovative Company (JEI) scheme is designed to support the creation and development of SMEs engaged in research and development (R&D). Under certain conditions, it allows eligible companies to benefit from full or partial exemptions from employer social security contributions linked to R&D staff, thereby reducing the cost of innovation activities.

Expanded in 2024 with the introduction of the Young Growth Company (JEC) scheme, the framework was extended to innovative SMEs with a lower R&D intensity but strong development and scaling potential. This scheme provides similar social advantages, adapted to companies combining innovation and rapid growth.

Further extended in 2026 with the Young Innovative Company with Impact (JEII) scheme, the framework now also supports companies developing innovation with environmental, social or societal impact. This scheme aims to encourage innovation aligned with sustainability and societal transition objectives, while maintaining social contribution exemptions under specific conditions.

Eligibility conditions

Although each scheme has specific requirements, they share a common framework:

  • The company must qualify as an SME under EU definition
  • It must be independent (no controlling shareholding by large groups in most cases)
  • It must carry out eligible R&D or innovation activities within the meaning of French tax law
  • It must meet specific age and/or expenditure thresholds depending on the scheme

JEI – Young Innovative Company (created in 2004)

  • Company age generally limited to less than 8 years
  • R&D expenses must represent a significant share of total deductible costs (around 20%)
  • Focus on companies with strong and structured R&D activity

JEC – Young Growth Company (introduced in 2024)

  • Designed for innovative companies in a growth phase
  • Lower R&D intensity required compared to JEI (typically between 5% and 20% of deductible expenses)
  • Targets companies combining innovation and commercial scaling

JEII – Young Innovative Company with Impact (introduced in 2026)

  • Focus on companies developing environmental, social or societal impact innovations
  • Eligibility relies on both innovation criteria and impact-oriented activity
  • Administrative doctrine is still being refined for operational application

Key benefits

These schemes provide significant reductions in labour and tax costs linked to innovation activities, including:

  • Social security exemptions on salaries of employees involved in R&D or innovation
  • Possible local tax reliefs (subject to local authority decisions, such as property tax or business tax exemptions)
  • Improved financial structure for companies investing heavily in innovation
  • Strong complementarity with other French innovation incentives such as the CIR

The JEI, JEC and JEII schemes are closely aligned with the French Research Tax Credit (CIR) framework.

  • They rely on the same tax definition of R&D activities
  • The same projects and expenditures can often support both schemes
  • However, each regime follows its own calculation rules and eligibility thresholds

In practice, they are fully complementary but not identical, requiring a separate analysis of eligibility and documentation.

Our range of services

Audit of your R&D activities

We will arrange a meeting to discuss your current project(s) and check that the conditions for eligibility for YIC/YUC status are met.

Drafting the tax ruling

We take charge of drafting the R&D project selected for the rescript application in accordance with the expectations of the tax authorities and compile the administrative file.

Support

We will monitor your file until the tax authorities issue a favourable opinion on your YIC/YUC status. After 3 months, the administration's opinion is deemed to be favourable.

Calculating your exemptions

Once your status has been recognised, we will calculate the tax and social security exemptions you will benefit from during the period of validity of your YIC/YUC status.

How FRS consulting can help you to obtain YIC/YUC status ?

To obtain YIC/YUC status, you need to file a self-declaration with your local public finance department. However, to reduce the risk of a tax reassessment, you are strongly advised to apply to the tax authorities for a rescript to ensure that the conditions for qualifying for YIC/YUC status are met.

To illustrate our support, here are some of the cases we have encountered:

Are you launching your start-up and want to do things right?

At innovation fairs such as MedInTechs, we meet CEOs of start-ups that meet the eligibility criteria for YIC or YUC status. Some companies did it alone and then decide to seek support after receiving negative feedback from the authorities.

Researchers looking for support?

In 2018, three INSERM researchers set up a company dedicated to developing innovative biotherapies in oncology. In 2021, we helped them apply for a YUC ruling procedure. The application was favourably received by the tax authorities. As a result, our customers obtained YUC status and benefited from the associated advantages.

Do you qualify for YIC status and want to claim RTC?

One of our customers has launched a company to sell a product developed in his university research laboratory. He took on two employees on permanent contracts. We filed a rescript with the tax authorities, who recognised his eligibility for YIC status. In addition to the advantages mentioned for this status, our customer also benefited from the immediate repayment of his RTC. Two complementary schemes to help you get started as a young SME.