The research project empirically investigates the effect of a tax incentive regime for research and development on tax revenue for Germany. The research project considers various possibilities of an implementation of a tax incentive regime into the German tax system and provides a quantitative assessment. The employed microsimulation model ZEW TaxCoMM is based on a sample of German corporations and allows estimating the tax revenue effect of various alternative tax incentive regimes. The project was financed by Bundesverband der Deutschen Industrie (BDI).