On Feb 28th the council of ministers agreed on an excessive-investment premium for large companies. This measure substitutes the early depreciation allowance as presented in the governmental work plan a month ago. The subsidy is comparable to the already agreed excessive investment premium for SME and is limited to the period 1.3.2017 to 31.12.2017.
The subsidy can be claimed by enterprises with more than 250 employees or enterprises with revenues more than EUR 50 m and a balance sheet total exceeding EUR 43 m. Enterprises must show financial statements for at least 3 years. For smaller companies the door to the SME excessive investment premium is left open.
Subject to the subsidy are newly purchased non-current tangible assets of an Austrian permanent establishment.
Not subject to subsidy are:
- Costs (invoices, orders) occurred before the proposal
- Lease financed and used assets
- Vehicles (also for transport)
- Intangible assets
- Real estates (land)
- Financial assets
The amount of the subsidy depends on the excessive investment in relation to the average investments of the last 3 years. The premium on the excessive investment amounts to 10%. A minimum excessive investment of EUR 500,000 is required. The premium is limited to an excessive investment of EUR 10 m. Thus, minimum premium amounts EUR 50,000 and maximum premium amounts EUR 1 m.
Limitation of subsidies.
A premium of more than EUR 200,000 (limited by EU regulation ‘De-minimis’) will be only granted if the investment is made in rural regions according to AGVO. Furthermore, the subsidy is limited to a total governmental budget position of EUR 100 m. Subsidies are granted according to the first-come, first-served principle.
Claims will be possible from 01.03.2017 – 31.12.2017, the subsidized investments have to be made within 2 years after signing of the subsidy-agreement. In general, proposal must occur before the investments are made. The claims will be proceeded by aws (Austria Wirtschaftsservice) and ÖHT (Austrian bank for hotels and tourism). Guidelines will be worked out by the involved ministries.
Excessive investment premium for SME.
Until now no draft bill has been published. The legal basis to this subsidy is to be agreed by the lawmaker soon. Effective date is planned retrospectively by 9th January 2017. The proposal for this subsidy can already be made at aws. However, to approve the subsidy the respective legal basis will be needed.
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