Volume of subsidies for COVID-19 investment allowance increased

23. October 2020 | Reading Time: 1 Min

tpa news - achtung

The original volume of subsidies for the COVID-19 investment allowance in Austria was limited to 1 billion euros under the investment allowance act. However, due to the enormous demand, this billion was used up immediately – as had been expected by many experts.

COVID-19 Investment allowance increased to 2 billion euros

On 30 September 2020, the legislator increased the volume of subsidies by another billion to a total of 2 billion euros (cf. § 1 para. 3) (cf. RIS – Investistionsprämiengesetz – in German language)

Another extension is being discussed already.

The investment allowance of 7% and 14%, respectively, for certain privileged investments (digitisation, ecologisation/greening, and health/life science) may be applied for until 28 February 2021.

TPA tip: As another increase beyond the EUR 2 billion is by no means certain, we generally recommend to submit your applications quickly.

Any new investments in depreciable tangible and intangible assets that must be capitalised are eligible for a subsidy. For this purpose, the entrepreneur must take initial measures (e.g. placement of the order, purchase contract, delivery) in the period from 1 August 2020 until 28 February 2021 and submit a corresponding application to AWS GmbH.

Disbursement of the investment allowance will take place upon complete payment and commissioning of the investment.

We will be happy to assist you and take care of applying for your investment allowance.

Contact our experts