New extension to the investment plans of the development laws

A new extension is given to the deadline for the completion of investment projects which have been subject to the provisions of development laws 3299/2004 and 3908/2011.

In the draft law which was submitted to Parliament under the title “Integrated Palliative Care Provision System – Arrangements to deal with the COVID-19 coronavirus pandemic and protect public health and other urgent arrangements” provides for the extension, once again, of the deadline for completing the investment plans, which have been subject to the provisions of laws 3299/2004 and 3908/2011.

Specifically, with article 79 of the draft law, a new extension is granted to the investment project completion deadline, nine months for the investment projects of Law 3299/2004 (A’ 261) and one year for the investment projects of Law 3908/2011 (A’ 8), as long as the conditions set by Law 4399/2016 (A’ 167) are met. This extension is deemed necessary for the completion of the said investment projects, taking into account their contribution to the economic development of the country.

It is noted that as Deputy Minister of Development and Investments Nikos Papathanasis stated in his conversation with journalists, “this will be the last time an extension is granted”.

“Entrepreneurship 360°”

Meanwhile, in the next few days, as announced by Mr. Papathanasis, the announcement of the status of the new “Entrepreneurship 360°” development law with a budget of 150 million euros is expected. Of the 150 million euros, 75 million will be allocated as aid to businesses in the form of the grant, the leasing subsidy and the subsidy for the cost of created employment and the remaining 75 million euros as tax exemptions. The application process will remain active for three months.

In the framework of the “Entrepreneurship 360°” aid scheme, investment projects of all categories, i.e. all sectors of the economy, with the exception of those falling under the agri-food aid schemes – primary production and processing of agricultural products – fishing, processing – supply chain, supporting tourism investments and alternative forms of tourism.

The investment plans must have an integrated nature of initial investment and meet one of the conditions:

– Create a new unit.

– Expanding the capacity of the existing unit.

– Diversification of the unit’s production into products or services that have never been provided by it, provided that the aided expenditure exceeds by at least 200% the book value of the assets being reused, as recorded in the tax year before the application for inclusion of the project.

– Fundamental change of the entire production process of an existing unit.

As in the other regimes of the development law, the beneficiaries of “Entrepreneurship 360°” are the investment entities that are established or have a branch in Greek territory at the time of commencement of the investment project and have one of the following forms:

– Commercial company.

– Cooperative.

– Social Cooperative Enterprises (SOEs), Agricultural Cooperatives (AS), Producer Groups (O.P.), Producer Organizations (O.P.), Urban Cooperatives, Agricultural Corporate Partnerships (AES).

– Under establishment or under merger companies, with the obligation to have completed the publicity procedures before starting work on the investment plan.

– Joint ventures that carry out commercial activity.

– Public and municipal enterprises and their subsidiaries, provided that:

a) they have not been assigned to serve a public purpose,

b) the provision of services has not been assigned exclusively to them by the state,

c) their operation is not subsidized with public funds for the period of compliance with the long-term obligations defined by law 4887/22 (articles 22 and 25).

To be included in the aid scheme, the minimum amount of the eligible cost of the investment project must be 1 million euros for large companies, 500 thousand euros for medium-sized companies, 250,000 euros for small companies, 100 thousand euros .euro for very small businesses and at 50,000 euros for Social Cooperative Enterprises, as well as Agricultural Cooperatives, Urban Cooperatives, Producer Groups and Agricultural Corporate Partnerships.

However, it should be noted that increased aid rates are granted to investment projects implemented in mountainous areas, in areas at a distance of up to 30 kilometers from the border, in islands with a population of less than 3,100 inhabitants, in areas affected by natural disasters, as and in listed buildings.

Eligible expenses

As mentioned above, the investment plans of the “Entrepreneurship 360°” scheme are reinforced with the incentives of tax exemption, grant, leasing subsidy and subsidizing the cost of the employment created. For medium and large enterprises, the aid includes the above-mentioned incentives in addition to the grant.

The eligible expenses of the investment projects subject to the aid regimes of the new development law are divided into those included in the Regional Aid Charter and the expenses outside the “Charter”.

The eligible Regional Support Expenditures are as follows:

a) Building facilities: Costs of construction, expansion and modernization of building facilities, special and auxiliary facilities of the buildings, as well as the building constructions to ensure accessibility for people with disabilities.

b) Landscaping projects: Earthworks, landscaping, plot fencing, building biological cleaning, plantings, environmental electrical installations, environmental plumbing, water supply.

In total, these costs cannot exceed 45% of the total supported costs of a regional nature and 80% for investment projects implemented in buildings, which are classified as preserved.

c) Mechanical equipment, techniques – special facilities:

Purchase and installation of modern machinery, including technical installations and generally the arrangements made for their permanent installation and connection to the production circuit.

Costs of construction, purchase, supply or modernization of special facilities (e.g. heating facilities, air conditioning units or storage tanks).

d) Other equipment:

Expenses for the purchase and installation of other equipment and/or the purchase of furniture and office equipment only if it is a basic part of the productive equipment of the investment.

e) Means of transport: Any type of vehicle with which the company carries out transport and movement of staff and customers, provided that they move within the premises of the unit. Vehicles with up to six seats are not eligible.

f) Purchase of fixed assets of a unit that has ceased operation at least two years before the date of submission of the affiliation application:

– Purchase of the property (building) of the unit.

– Purchase of the mechanical and other equipment of the unit.

g) Intangible assets:

Expenditures for the transfer of technology – know-how, certification of products and quality assurance processes, purchase, software development, business organization systems.

h) Salary cost of new jobs:

Eligible is the wage cost expenditure of the new jobs created as a result of the implementation of the investment plan, calculated for a period of two years from the creation of each position.

Accordingly, the eligible costs outside of Regional Aid are the following:

a) Investment costs for consulting services in SMEs:

They concern studies and consultancy fees for investment projects of new SMEs.

b) Expenses for professional training: They relate to the upgrading of qualifications or the retraining of employees, as well as the education/training of company personnel in matters important for the operation and organization of the company.

c) Aids for participation of SMEs in trade fairs:

Expenses for renting, setting up and managing a stand for participating in a trade fair.

d) Costs for the restoration of contaminated sites:

Eligible are those required for restoration work, reduced by the increase in the value of the plot. Costs for remediation of soils, groundwater and waste management are included.

e) Costs for waste recycling and reuse:

The additional costs necessary to make an investment in better or more efficient recycling or reuse activities compared to a conventional unit that would be built without receiving aid.

f) Aid for disadvantaged workers.

Wage costs for disadvantaged and disabled workers.

g) Investment costs for energy efficiency measures:

The additional costs required to achieve the highest level of energy efficiency.

h) Investment costs for the co-production of high efficiency energy from RES:

The additional costs in equipment that the facility needs to operate as a high-efficiency cogeneration facility, compared to conventional facilities.

i) Expenses for energy production from renewable sources.

j) Costs for installing efficient district heating and district cooling systems.

RES-EMP

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