Storage & Charging Technology COVID-19 Investment Premium

Written by Thomas Lieder | May 25, 2020 10:00:00 PM

In response to the far-reaching effects of COVID-19, the Austrian federal government has put together a broad package of measures to promote sustainable investments. It is evident that the purchase of future-proof storage solutions is predestined for the investment premium. Therefore, our intelligent battery storage solutions can be subsidised by the government.

Thanks to the increased share of self-consumption, our storage systems amortise very quickly and the additional investment premium makes the offer even more tempting. Anyone who does not yet have a battery storage system or is thinking about upgrading should act quickly.
The emphasis here is on quickly, as the subsidy is processed according to the "first-come-first-served" principle. To give you a head start, we have compiled all the important information and prepared it here. We will update the article as soon as anything new happens.

The corresponding Investitionsprämiengesetz (InvPrG - Austrian Investment Premium Act) was already passed by the National Council on 07.07.2020. Austrian and foreign companies with an Austrian branch office can claim this tax-free subsidy. All details can be found in the funding guidelines.

The following conditions must be observed:

The subsidy premium for investments in the areas of digitalisation, greening, health and life sciences is 14%.

Tangible and intangible new investments that must be capitalised at Austrian business locations are eligible for funding.

Companies of all sectors and sizes can receive the investment premium.

Applications can be submitted from 1 September 2020 via the Austria Wirtschaftsservice Gesellschaft (AWS - Austrian Business Service Association) in the Promotion Manager at www.aws.at.
The total funding volume is max. EUR 1 billion. The "first-come-first-served" principle applies.
Initial measures (orders, purchase contracts, etc.) for the investment projects must be taken between 01.08.2020 and 28.02.2021.
Investments between a minimum of 5,000 and a maximum of 50 million euros (=max. 7 million euros at 14%) will be funded per company or group.
For the lower limit, several investments can be combined for one application.
Subsidies under the Austrian Investment Premium Act do not constitute taxable business income. They are therefore tax-free and do not lead to any reduction in expenditure.
Combination with national subsidies is permitted (e.g. OeMAG - settlement agency for green electricity).

Additional degressive depreciation for acquisitions or tax loss carry-back:

The combination of the investment premium with further relief from the government's package of measures is particularly interesting. The COVID-19 investment premium is made even more attractive by the possibility of degressive depreciation for acquisitions. This can be claimed for assets that are acquired or manufactured after 30.06.2020. Therefore, 30% of the eligible costs can already be written off at the beginning of the project. In addition, there will be the possibility to carry back losses for non-compensable, negative business income of the assessment period 2020 into the years 2019 and 2018. We will keep you up to date on this and other topics in upcoming articles and our newsletter.

Our tip for the most successful subsidy processing possible:

It is best to start obtaining cost estimates and planning and documenting your investment project as early as the beginning of August. Because the sooner you can submit the application in full, the higher your chances of having the funding application approved in the end.

Sources

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