Amendment to the conditions for investment incentive applications regarding the production of strategic products is under discussion

The amendment to Government Decree No. 221/2019 Coll., on the Implementation of Certain Provisions of the Act on Investment Incentives is being subject to an interdepartmental comment procedure. The reason for the decree amendment is the support of the current needs of the Czech market, which has been impacted by the COVID-19 pandemic. As a result of the pandemic, the demand for specific products such as protective shields, face masks, respirators, etc. has risen and at the same time, private investments have declined.

It is therefore proposed that in case of investments focused on the production of personal protective equipment, a wider range of medical equipment and pharmaceuticals, the investment incentive application would no longer include the condition of a higher added value, which all applicants have to meet if their production project is situated out of the state-supported region. Furthermore, it is proposed to allow obtaining material support for the acquisition of tangible and intangible fixed assets in the amount up to 10% of the eligible expenditure on these production investments without the minimum investment requirement of CZK 500 million and minimum number of 500 job positions.

Moreover, it is proposed to reduce the minimum investment limits for obtaining state aid in a form of investment incentives from the current total of CZK 100 million (CZK 50 million for the acquisition of machinery) to CZK 80 million (CZK 40 million for machinery), and to decrease the limits for small entrepreneurs, i.e. limits of investments in tangible and intangible fixed assets down to CZK 10 million.

We will inform you of any further development.

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