On 6 March 2024 an amendment to the Investment Aid Act took effect. This amendment introduces the possibility to apply for extraordinary aid for investments in sectors which are key for the transition to a net-zero economy, in line with the EU Green Deal Industrial plan.
This new arrangement is applicable to companies in some specific sectors. The Temporary Crisis and Transition Framework (“TCTF”) as published by the European Commission in March 2022, gives the right to Member States to set up aid schemes to accelerate the transition towards a net-zero economy.
However, this extraordinary aid is limited to 2024-2025 period and to investment projects in specific industrial sectors:
a) Production of batteries, solar panels, wind turbines, heat-pumps, electrolysers, and equipment for carbon capture usage and storage.
b) Production of key components designed and primarily used as direct input to produce equipment defined under (a).
c) Production or recovery of related critical raw materials necessary to produce equipment and key components defined under (a) and (b).
The respective aid intensities are also set by the EU. The aid intensity depends on whether the investor qualifies as a SME or large enterprise and in which district will be invested. The aid intensity varies from 15% (cash grant for large enterprises in the Bratislava area) to 60% (corporate tax relief for small enterprises which invest in Western Slovakia (excluding the wider Bratislava area), Central and Eastern Slovakia. The aid intensity may be higher in case the investor can demonstrate that countries outside the EU support similar investment projects with higher aid amounts.
The total aid amount per investment project is limited to EUR 350 million in all districts, except the districts which belong to the Bratislava region. In these districts the aid amount per investment project is limited to 150 million EUR.
Companies which have already applied for investment aid may request the Ministry of Economy to change that request into a request for extraordinary aid unless the Ministry already issued a proposal for investment aid.
Eligible companies can choose between investment (regional) aid and extraordinary aid. In this respect we note that regional investment aid intensity ceiling is in most cases higher. However, many other aspects should be taken into account before a final decision is made. We will happy to provide you further guidance.
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