The COVID-19 Investment Premium is designed to serve as an incentive for corporate investments in order to counteract the subdued investment confidence on the part of Austrian companies. Awarding non-refundable grants for investments provides additional far-reaching impetus for investments, growth and employment.
The economic and financial consequences of the COVID-19 crisis pose major challenges to companies. In order to strengthen the Austrian business location, the Austrian Federal Government has resolved upon a new investment promotion program for companies with a total volume of EUR 3 billion, which will be further increased, if necessary.
The Austrian Federal Government approved changes in the investment premium effective January 20, 2021. Accordingly, the deadline for the “initial measures” characterizing the beginning of the investment will be extended from February 28, 2021 to May 31, 2021. Applications must be submitted to Austria Wirtschaftsservice (aws) by February 28, 2021.
The new funding program targets all companies carrying out investments in depreciable fixed assets and supports the growth of companies by temporarily reducing investment costs.
Priority is given to funding investments in the fields of ecologization, digitalization, health/life sciences which favor the structural transformation of the Austrian economy.
All companies whose headquarters or operational sites are located in Austria and which make investments in depreciable fixed assets, regardless of their date of incorporation, size and industry.
More about trade and investment promotion organizations HERE.
Type and amount of funding:
- The funding is awarded in the form of a tax-free, non-refundable grant.
- The investment bonus equals seven percent of eligible new investments.
- The investment bonus increases to fourteen percent for purchases in the fields of ecologization, digitalization and health/life sciences.
Investments eligible for funding:
- New investments in tangible and intangible depreciable fixed assets of a company at its Austrian facilities subject to mandatory capitalization,
- the investments being put into operation by no later than 28 February 2022 and for which applications are submitted to Austria Wirtschaftsservice (aws) between September 1, 2020 and February 28, 2021.
- Initial measures related to investments (such as orders, purchase agreements, deliveries, the beginning of services, advance payments, payments, invoices or the beginning of construction) have to be carried out between August 1, 2020 and May 31, 2021..
- The funded assets must be left at an operational site in Austria for a period of at least three years (retention period). During this time the assets are not permitted to be sold or to be used for purposes other than for the benefit of the business premises operated in Austria.
Source/Image Credit: ABA