Free online invoicing software
with KSeF support
Manufacturing businesses investing in innovation and development can benefit from certain special tax reliefs. Alongside the most popular research and development relief, or R&D relief, the so-called prototype relief, covering trial production and bringing a new product to market, also deserves attention. What exactly is this relief, what conditions apply in 2026, and which costs can be deducted? Read on.
What is trial production tax relief and how can you use it?
Trial production relief, more commonly called prototype relief, is a tax relief arising directly from Article 26ga of the PIT Act, with an equivalent in Article 18ea of the CIT Act.
Under paragraph 1 of that article, the relief involves deducting from the tax calculation base an amount equal to 30% of the total costs of trial production of a new product and bringing it to market, with the deduction in a tax year limited to 10% of income from non-agricultural business activity.
The relief is therefore intended for businesses whose research and development work has produced a new product allowing them to expand their offering and enter new sales markets.
A business wishing to apply trial production relief need not worry if it incurs a loss in a year or earns less income than the available deduction.
Prototype relief can be deducted over six consecutive tax years immediately following the year in which entitlement to the deduction arose.
The deduction is available only for costs which:
- were actually incurred in the tax year for which the deduction is made,
- were not reimbursed to the taxpayer and were not previously deducted from the tax calculation base.
For PIT taxpayers, the relief is available to entrepreneurs earning income from non-agricultural business activity taxed under the tax scale or at the 19% flat rate. As already noted, the CIT Act provides a similar solution for corporate income tax payers.
Accounting that understands your business
Leave your email address and receive guides supporting your business’s growth once a week
What is trial production of a new product, and which related eligible costs can be claimed under prototype relief?
Paragraph 3 of Article 26ga of the PIT Act, cited above, gives a precise definition of trial production of a new product.
It is “the technological production start-up stage not requiring further design, construction or engineering work, intended to carry out trials and tests before launching the production process for a new product resulting from the taxpayer’s research and development work; the technological start-up stage covers the period from incurring the first cost associated with that stage until production of the new product begins”.
Eligible trial production costs for a new product are:
- the purchase price or manufacturing cost of brand-new fixed assets necessary to launch trial production of a new product, classified in groups 3–6 and 8 of the Classification of Fixed Assets,
- expenditure on improving fixed assets incurred to adapt those assets, classified in groups 3–6 and 8 of KŚT, for launching trial production of a new product,
- the purchase costs of materials and raw materials acquired exclusively for trial production of a new product.
What does bringing a new product to market mean? New product market launch costs — which are deductible in 2026?
Bringing a new product to market, as defined in Article 26ga(4) of the PIT Act, means “actions undertaken to prepare documentation for obtaining certificates and permits for a product resulting from the taxpayer’s research and development work, enabling that product to be offered for sale”.
The related eligible costs are:
- costs of research, expert assessments and preparation of documentation necessary to obtain a certificate, type approval, CE mark or safety mark, obtain or maintain a marketing authorisation, as well as costs of other mandatory documents or markings related to authorisation for marketing or use, and fees charged to obtain, renew or extend them,
- costs of product life-cycle assessment,
- costs associated with the environmental technology verification system.
Marketing, advertising or promotional expenditure associated with commercialising the product does not qualify as eligible costs of bringing it to market.
Limitations of trial production tax relief under PIT and CIT in 2026
Remember that the costs of trial production of a new product and bringing it to market are reduced by VAT, except where, under separate rules, VAT does not constitute input tax, or the taxpayer is not entitled to reduce output tax by input tax or obtain a refund of the tax difference.
Taxpayers earning income from activity in a special economic zone or from a new investment specified in a support decision are entitled to use prototype relief and make the deduction only for new product production or market launch costs not included in calculating tax-exempt income.
If this article interested you, explore our accounting and advisory services for manufacturing and read how we can help you:
Summary
Trial production tax relief in 2026
In practice, trial production tax relief in 2026 allows an amount equal to 30% of the total costs of trial production of a new product and bringing it to market to be deducted from the tax calculation base. The deduction in a tax year cannot, however, exceed 10% of business income.
Deductions under this relief can be made over six consecutive tax years immediately following the year in which entitlement arose.
Remember the eligible expenditure specified in the act and the relief’s limitations, particularly for entrepreneurs operating in special economic zones or undertaking new investments specified in support decisions.
Finally, the trial production relief described in this article appears not only in Article 26ga of the PIT Act, repeatedly cited above, but also in Article 18ea of the CIT Act, meaning CIT taxpayers can also use it.
Interested in this article?
Enter your email address and once a week you will receive practical materials and tips to help you grow your business.
Book a free consultation
Grow your business with accounting combined with advisory services:
or
