Investment Bonus Act: What is funded

Investment Bonus Act: What is funded

The Investment Bonus Act was passed in the National Council on July 7th.  The key points:

• Beantragung ab 01.09.2020

In order to stimulate investment activities during this difficult time, all companies (EPU, micro and small companies, medium-sized companies and large companies) with their headquarters and/or permanent establishment in Austria will have the opportunity to apply for the investment bonus via the aws as of September 1st, 2020. The investment bonus can also be applied for by startups (they must have already been founded at the time of application).

• Förderfähige Investitionen

Tangible and intangible new investments in depreciable assets that require capitalization are eligible for funding. Investments in digitalization, greening as well as health and life science are particularly favored:

Selected points for retailers in the area of ​​“greening” 

• Anschaffung von neuen Elektro-Fahrrädern und neuen Fahrrädern (positiv insb. für den Sporthandel)
• Anschaffung von Elektrofahrzeuge, Plug-In Hybrid, Range Extender, Brennstoffzellenfahrzeuge, E-Sonderfahrzeuge (z.B. E-Stapler, E-Baumaschinen und E-Traktoren) und E-Ladestationen (positiv insb. für den Fahrzeughandel). Zudem ist die Anschaffung und Umrüstung von Fahrzeugen mit alternativen, fossil-freien Antrieben förderfähig.

What is critical is that the purchase of vehicles with the latest generation of combustion engines, which would contribute to a significant reduction in CO2 emissions, is not supported. It is also critical that gas station tanks (storage of fossil fuels) and gas pumps (“direct use” of fossil fuels) are not eligible for funding.  

Selected points for retail in the area of ​​“digitalization” 

• E-Commerce (z.B. digitale Transformation des Verkaufs- und Vertriebsprozesses, die Einführung und Weiterentwicklung von digitalen B2B- oder B2C-Anwendungen oder Umsetzung von innovativen und datenbasierten Online-Strategien, Aufbau von professioneller Internetpräsenz und Buchungsplattformen)
• Anschaffung von Hardware (z.B. 3D-Drucker, Drohnen etc)
• Neuanschaffung von Software

Selected points for trading in the “Health and Life Science” sector 
Investment in facilities for the production of products that are of strategic importance in pandemics, which are:
Medical face masks, disinfectants etc

• Investitionen zwischen 01.08.2020 – 28.02.2021 werden gefördert

Investments that are started and submitted from August 1st, 2020 to February 28th, 2021 will be supported. The first measures must be taken in connection with the investment between August 1st, 2020 and February 28th, 2021. First measures that must be taken by February 28, 2021are Orders, purchase contracts, deliveries, the start of services, down payments, payments, invoices or the start of construction.No first measure may be taken before August 1st, 2020.Planning services and obtaining official approvals are not among the first measures.

• Investitionsdurchführungszeitraum 1-3 Jahre

Depending on the size of the investment, a maximum of 1 or 3 years are available for the implementation of the investment (no later than February 28, 2024).  

• Höhe der Investitionsprämie 7% bzw. 14%

The basic premium is 7% of the acquisition costs; investments in digitalization, greening as well as health and life science are particularly favored with a premium of 14%. The investment bonus is designed as a tax-free bonus that does not have to be repaid.

Note: According to the directive, the tax depreciation basis must be reduced by the subsidy; However, this contradicts the special regulation in the Economic Strengthening Act, according to which no reduction in the assessment basis may occur.

• Kombination mit anderen Förderinstrumenten zulässig

The combination with other funding instruments is permitted and is not to be seen as cumulation within the meaning of state aid law.

• Grenzen für förderungsfähige Investitionen EUR 5.000 – EUR 50 Mio.

Investments from EUR 5,000 and up to a maximum of EUR 50 million per company are supported with a subsidy of 7 or 14%. For a grant amount of EUR 12,000 or more, the billing must be confirmed by an auditor, tax advisor or accountant.

• Sperrfrist 3 Jahre

The funding items must each be left at a business location in Austria for at least 3 years; They may not be sold during this period, nor may they be used or transferred for purposes outside of a permanent establishment in Austria. The deadline is not violated if assets are removed from the company's assets due to force majeure or technical failures.