The French government is planning to introduce a new tax mechanism designed to help small and medium-sized businesses (SMEs) upgrade their operations, but it has chosen not to revise the expensive Research Tax Credit. According to the 2027 budget proposal, the government wants to encourage investments in areas such as robotics, artificial intelligence (AI), 3D printing, digital clones, and advanced analytics. This support will come in the form of a "temporary accelerated depreciation mechanism," which aims to help industrial enterprises modernize their equipment. The idea is inspired by a similar policy that successfully boosted modernization efforts among SMEs, according to the Ministry of Industry. Under this new mechanism, SMEs and mid-sized industrial companies would be allowed to deduct a larger portion of their investment costs from their taxes over a three-year period. Specifically, they could deduct between 40% and 120% of their investment in modernizing productive equipment. A previous version of this policy, known as the "robotic" accelerated depreciation, applied to assets acquired or manufactured before December 31, 2020. It reportedly increased investments by 15% among eligible SMEs, with a total fiscal cost of less than 40 million euros, according to the ministry. The Research Tax Credit is currently the main tax incentive in France aimed at encouraging innovation. However, it is also the most costly for the government, with an annual expense of around 7 billion euros. This tax credit is available to a wide range of companies, provided they engage in research and development activities. During the Aix meetings in July, Nobel Prize-winning economist Philippe Aghion raised concerns with the Minister of Economy, suggesting that the credit was "not well targeted." Roland Lescure, another economist, proposed redirecting the Research Tax Credit to focus on "genuine breakthrough innovations in applied research," while reducing the financial burden on companies. However, this idea was not accepted, and the government has decided to maintain the Research Tax Credit as it is in the 2027 budget proposal.