Extraordinary investment aid

In our previous Newsletter, we had informed you about the draft amendment to Act No. 57/2018 Coll., on Regional Investment Aid, which was approved on 13 February 2024 in the presented version.

Following this amendment, the Ministry of Economy of the Slovak Republic submitted a proposal for modification of the Government Regulation laying down the conditions for granting investment aid, the maximum intensity of investment aid and the maximum amount of investment aid. In particular, the intention is to use the European Union’s (EU) temporary crisis framework for accelerated support in sectors strategic for the transition to a climate-neutral economyThe draft Government Regulation modifies the maximum intensity as well as the maximum amount of investment aid for an investment plan with eligible costs above EUR 50 million. The amount of the maximum aid depends on the size of the applicant’s business, the location where the investment plan is to be carried out, and the form of the investment aid requested. Investment aid in the form of tax relief is favoured. In cases where investment aid is subject to notification to the European Commission, the threshold of eligible costs will be reduced.

Furthermore, it is proposed to change the regional aid map for Slovakia and to divide the districts into zones M1 (districts of western, central and eastern Slovakia) and M2 (districts of the Bratislava Region) for the purpose of extraordinary investment aid in sectors strategic for the transition to a climate-neutral economy. At the same time, it will be possible to increase the maximum amount and the maximum intensity of the extraordinary investment aid up to the amount that could be demonstrably granted to the beneficiary for an equivalent investment in a third country outside the European Economic Area.

Among the sectors in which investment plans may be supported by extraordinary investment aid are those focusing on:

• production of batteries, solar panels, wind turbines, heat pumps, electrolysers and carbon dioxide capture and storage equipment,
• production of key components designed and primarily used as a direct input to production according to the previous point and listed in the Annex to the Government Regulation,
• production or recovery of critical raw materials necessary for the production of the products according to the points above and listed in Annex IV to EU Regulation No. 651/2014.

The effective date of the modification of the Government Regulation is proposed to be the date of its promulgation.