Government grants

Programme for supporting investments of major importance to the Polish economy for years 2011-2020 is the initiative, under which investors may obtain financing of their planned investment projects (usually of production nature). Grants within the program may be obtained under the agreement between the Ministry of Development and the investor, which regulates financing terms and conditions. Grants are disbursed proportionately to the investment project progress level, which is referred to as the investor’s obligation in the grant agreement.

In accordance with the European Union regulations, governmental grants as ad hoc support are classified as state aid and in specific cases must be accepted by the European Commission, (if the project eligible costs exceed EUR 100 million – it applies to the aid cumulative amount). In the case of the Dolnośląskie Voivodship (The Lower Silesia Region), maximum aid amount, which does not require direct involvement of the Commission is EUR 33.75 million.

For whom?

The Program is mainly addressed to the investors operating in sectors of material importance (priority) to Polish economy, such as

 

Aid may also be provided for so-called significant investments implemented in other sectors, i.e.:

  • production investment projects with minimal eligible costs of PLN 750 million, which create at least 200 new jobs.
  • production investment projects with minimal eligible costs of PLN 500 million, which create at least 500 new jobs.

For what?

Governmental grants may be given for:

  • the cost of employment arising from new jobs created within the project, or
  • investment costs incurred directly in connection with a given project.

Grant applications should be submitted to the Polish Investment and Trade Agency (PAIH).  Investment project may be given a grant, if the following criteria are met:

NEW JOBS

The project may be given a grant to cover employment costs if:

  • it constitutes a new production project to be implemented in priority sectors, which involves creating at least 250 new jobs and if the investment costs amount to at least PLN 40 million;
  • it is not implemented in priority sector, but involves creating at least 200 new jobs and if the investment costs amount to at least PLN 750 million or if it involves creating at least 500 new jobs and if the investment costs amount to at least PLN 500 million;
  • it is to be implemented in modern services sector and involves creating at least 250 new jobs and if the investment costs amount to at least PLN 1.5 million;
  • it is to be implemented in R&D sector and involves creating at least 35 new jobs and if the investment costs amount to at least PLN 1 million.

The scope of aid given in the government grant for labour costs depends on the type of investment.

In the case of production projects, the following factors are taken into account:

  • number of created new jobs;
  • share of employees with university degree;
  • location of the planned investment;
  • costs of the project;
  • industry;
  • market attractiveness of produced goods.

Services-oriented projects are given grants based on the following factors:

  • number of created new jobs;
  • share of employees with university degree;
  • location of the planned investment;
  • complexity of provided service.s

The subsidy amount depends on assessment of the project. Depending on the number of points given to the project the subsidy ranges from PLN 3200 to PLN 15 600 per one new job.

Industry New jobs Minimum costs (PLN)
Priority sectors 250 40 million
Modern services 250 1.5 million
R&D 35 1.5 millona
Other sectors – option 1 200 750 million
Other sectors – option 2 500 500 million

The amount of governmental grant for the employment costs depends on the project type.

In the case of production projects, the following criteria will be taken into consideration:

  • the number of new jobs;
  • the share of employees with university education in the total number of new employees;
  • planned project location (high unemployment rate poviats (counties) will receive additional points);
  • project costs;
  • sector;
  • market attractiveness of the manufactured goods;
  • other: product and process innovation, higher probability of attracting new investors, pro-ecological impact of the planned investment, other positive externalities.

Service-oriented projects will receive grants based on the following criteria:

  • the number of new jobs;
  • the share of employees with university education;
  • planned project location (high unemployment rate poviats (counties) will receive additional points);
  • complexity of the services provided;
  • other: cooperation with universities, company’s brand, process uniqueness.

The aid amount will depend on the project evaluation. Depending on the score received by the project, the aid may be granted in the amount between PLN 3 200 and PLN 15 600 per new job.

NEW INVESTMENTS

A project may receive aid directly allocated to the investment costs, if:

  • it is a new investment implemented in one of priority sectors and if the capital expenditure amounts to at least PLN 160 million and if at least 50 new jobs are created;
  • it is not implemented in priority sector, but involves creating at least 200 new jobs and if the capital expenditure amounts to at least PLN 750 million OR if it involves creating at least 500 new jobs and if the capital expenditure amounts to at least PLN 500 million;
  • it is a new project in R&D sector and involves creating at least 35 new jobs for people with university education and if the capital expenditure amounts to at least PLN 10 million.

The aid amount will depend on the project evaluation. Depending on the score received by the project, the aid may be granted in the amount between 2 to 7.5 % of capital expenditure:

Industry New jobs Eligible costs of new investments (PLN)
Priority sectors 50 160 million
R&D 35 10 million
Other sectors – option 1 200 750 million
Other sectors – option 2 500 500 million

INVESTMENT PROJECT EVALUATION CRITERIA 

  • investment cost per new employee;
  • number of new employees;
  • location (high unemployment rate poviats (counties) will receive additional points);
  • other: increased employment at Polish partners, increased volume of orders placed at companies operating in Poland, cooperation established with Polish universities, significant pro-ecological impact of the project.

PROCEDURE

In order to receive the grant, the investor must undertake several steps:

StartPRELIMINARY PHASE

At this stage, the investment project as well as the required grant amount details should be presented. During preliminary phase, it is important to select an appropriate location for the project. Project information form should be submitted, containing the main information on the planned investment, such as information on the investor, information about the project, state aid received and planned.

OfertaSUPPORT OFFER PREPARATION

At this stage, the Polish Investment and Trade Agency team will formally evaluate the project information form and prepare project description together with the support offer, which is then forwarded to be evaluated by experts. Project description includes such information, as: investor’s activity in Poland and abroad, planned project, value, structure and detailed justification of the proposed support, support impact evaluation as well as project evaluation in accordance with the support eligibility criteria.

ZespółTEAM RECOMMENDATION

At this stage, the team of experts from PAIH, Ministry of Development and other ministries evaluates the project and support offer, as presented by the Team Chairman. Recommendations are given in an open procedure; 3/4 of the expert team member support is required for the grant to be given. The minutes of meeting are delivered to the Minister of Development, who will make a final decision whether to grant the support of not.

UmowaAGREEMENT EXECUTION

If the decision is positive, the Minister of Development will sign the agreement on the investment project aid with the investor.

KontrolaAGREEMENT PERFORMANCE AUDIT

Detailed audit scope, procedure and methodology is specified in the agreement. Audits are performed by authorized representatives of the Ministry of Development.

NOTE: Currently, a new governmental grant program is being developed. The program will provide for new financing criteria and new rules of the grant award procedure. The new program is to be adopted in Q2 of 2017.

The article has been written in cooperation with:

SAS-New-Logo-RGB-72ppi-small-kopia

SAS Advisors provides advisory services on obtaining preferential public funds (EU funds, national funds, Brussels funds). The portfolio of executed projects includes R & D projects (development of new technology, purchase of R & D infrastructure) and investment projects (implementation of new technological solutions / new products). SAS Advisors have raised over PLN 1.6 billion for international companies as well as Polish entrepreneurs.

How can we help you?

Additional information – please contact our team for all the additional information on the governmental grants.

Strategic partners

Content matter experts

Contact

+48 71 78 35 310
+48 71 78 35 311
office@invest-in-wroclaw.pl

Address

Agencja Rozwoju Aglomeracji Wrocławskiej SA
Plac Solny 14
50-062 Wrocław

Copyright © 2016 Invest in Wroclaw
Implementation and maintenance: Stermedia