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Austrian government creates investment premium for investors

Minister Schramböck © BKA

NEW: The Austrian Federal Government approved changes in the investment premium effective January 20, 2021. Accordingly, the deadline for the "initial measures" characterizing the beginning of the investment will be extended from February 28, 2021 to May 31, 2021. Applications must be submitted to Austria Wirtschaftsservice (aws) by February 28, 2021.

Aim of the funding:

The COVID-19 Investment Premium is designed to serve as an incentive for corporate investments in order to counteract the subdued investment confidence on the part of Austrian companies. Awarding non-refundable grants for investments provides additional far-reaching impetus for investments, growth and employment.

The new funding program targets all companies carrying out investments in depreciable fixed assets and supports the growth of companies by temporarily reducing investment costs.

Priority is given to funding investments in the fields of ecologization, digitalization, health/life sciences which favor the structural transformation of the Austrian economy.

Funding applicants:

All companies whose headquarters or operational sites are located in Austria and which make investments in depreciable fixed assets, regardless of their date of incorporation, size and industry.

Type and amount of funding:

  • The funding is awarded in the form of a tax-free, non-refundable grant.
  • The investment bonus equals seven percent of eligible new investments.
  • The investment bonus increases to fourteen percent for purchases in the fields of ecologization, digitalization and health/life sciences.

Investments eligible for funding:

  • New investments in tangible and intangible depreciable fixed assets of a company at its Austrian facilities subject to mandatory capitalization,
  • the investments being put into operation by no later than 28 February 2022 and for which applications are submitted to Austria Wirtschaftsservice (aws) between September 1, 2020 and February 28, 2021.
  • Initial measures related to investments (such as orders, purchase agreements, deliveries, the beginning of services, advance payments, payments, invoices or the beginning of construction) have to be carried out between August 1, 2020 and May 31, 2021..
  • The funded assets must be left at an operational site in Austria for a period of at least three years (retention period). During this time the assets are not permitted to be sold or to be used for purposes other than for the benefit of the business premises operated in Austria.

Non-fundable investments:

  • Climate-damaging investments (Investments in the construction and expansion of facilities which are involved in the excavation, transport and storage of fossil fuels and the construction of facilities which directly serve the purpose of using these fossil fuels.)
  • Investments for which initial measures are implemented before August 1, 2020 or after May 31, 2021.
  •  Capitalized own services
  • Investments financed via leasing (unless they are recognized in the financial statements of the company submitting the application).
  • The acquisition of commercial properties
  • The acquisition of buildings and parts of buildings (unless directly purchased from a property developer)
  • The construction and expansion of residential housing units if they are intended for sale or rent to private individuals.
  • Costs resulting from a company acquisition or takeover.
  • The acquisition of stakes in companies, other participating interests or goodwill.
  • Financial assets
  • Value added tax (unless the value added tax portion of fundable investments is not considered to be a fundable expenditure).
  • Plant and equipment not left at Austrian business premises for a period of less than three years.

Fundable investment volume:

  • Minimum amount: EUR 5,000 per application, excl. value-added tax (VAT)
    (Sum total of all investments per funding application; smaller investments e.g. in low-value assets, can be bundled in one application.)
  • Upper limit: EUR 50 million per company, excl. VAT
    (The maximum calculation base is EUR 50 million excluding VAT for higher investment volumes.)

Application submission and processing:

The application for the COVID-19 Investment Premium can be submitted online via the aws Fördermanager tool between September 1, 2020 and February 28, 2021. The premium is applicable retroactively
for investments made from August 1, 2020.

In case the funding application is approved by Austria Wirtschaftsservice (aws), a final invoice must be submitted online by using the aws Fördermanager within a period of three months after the investments have been put into operation and paid for.

In principle, the grant will be disbursed as a one-off payment after billing has been presented and an assessment has been carried out.

In German:

Förderungsrichtlinie COVID-19 Investitionsprämie für Unternehmen

 January 21st, 2021

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