Investment bonus of 7% or 14% for all Austrian companies – Applications can be submitted from September 1st, 2020 to February 28th, 2021

LBG note: An extension of the sales tax reduction until December 31 , 2021 has been announced, amendment to the law remains is expected.

In order to support the Austrian economy in the wake of the Corona crisis, the investment bonus is intended to create an incentive for corporate investments and thus contribute to strengthening economic development after the lock-down. Applications for the non-repayable investment bonus can be submitted to “Austria Wirtschaftsservice” (aws) between September 1, 2020 and February 28, 2021. An essential prerequisite is that the first measures (e.g. order, placing of order, start of construction) for new investments that are subject to capitalization in depreciable assets have been taken in the period from September 1, 2020 to February 28, 2021. Entrepreneurs (within the meaning of the UGB) from all sectors who have a registered office and / or a permanent establishment in Austria and are legally operated in their own name and for their own account are eligible for funding - from one-person companies to large companies. The company making the application is obliged to submit a statement of the investments made no later than three months after the last commissioning and payment of the investment to be funded according to the funding commitment. From a grant amount (investment bonus) of EUR 12,000, the settlement with regard to the activation of the investments applied for funding must be confirmed by a tax advisor, auditor or accountant on behalf of the funding applicant. The following essential details must be observed in any case.

What is funded?

Material and immaterial new investments in depreciable assets that are subject to capitalization are eligible for funding, for which an application for an investment bonus is submitted to “Austria Wirtschaftsservice”  between 09/01/2020 and 02/28/2021 and which are implemented by 02/28/2022 at the latest. This does not apply to new investments in large projects with an investment volume of EUR 20 million or more (excluding VAT), which must be implemented by 02/28/2024 at the latest. Both low-value assets and used goods are eligible as long as they are new acquisitions for the investing company or in the group.

The investment must have started before March 1st, 2021, whereby the following measures apply: orders, deliveries, the start of services, down payments, payments, invoices, conclusion of a purchase contract or the start of construction of the eligible investments.

What is not funded?

• Climate-damaging investments, including vehicles with conventional drive and systems that use fossil fuels.
• Investments for which the first measures were taken before 08/01/2020 or after 02/28/2021.
• Activated own work
• Leasing-financed investments, unless these are capitalized in the applying company.
• Costs that are not related to a business investment (e.g. private shares as part of the investment costs).
• The acquisition of buildings, parts of buildings and land.
• The construction and expansion of residential buildings, if these are intended for sale or rental to private individuals
• Business takeovers and the acquisition of participations, other business shares or
• Financial investments
• VAT (unless there is no right to deduct input tax).

How much is the grant?

The funding amount is generally 7% of the eligible investments and 14% for investments in the areas of greening, digitization and health.

Limits for eligible new investments per company or per group:

The minimum investment volume that can be funded per application is EUR 5,000 excluding VAT (i.e. smaller investments per application cannot be funded).

The maximum investment volume that can be funded is EUR 50 million excluding VAT per company or per group (i.e. if the investments are larger, a maximum of EUR 50 million excluding VAT is used as the basis for calculation).

Is the grant in the form of the investment bonus taxable?

No, but it reduces the deductible expenses (= depreciation) in the relevant financial year.

You can find all details on the investment bonus here.

Our consultants support you with the application, are available to you for a company-specific advice in connection with an investment, for financing questions, for budget and investment calculations as well as for questions in connection with taxes and balance sheet effects. 

A confirmation, usually from a tax advisor or auditor, is mandatory for an investment premium of EUR 12,000 or more. When you place an order, we take over the work associated with it according to the funding guidelines.

August 24th, 2020 I LBG I Heinz Harb

Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request.