18.03.2023/42
Important Changes Made to the Decision on State Aid for Investments.
The 6923 Presidential Decree, published in the Official Gazette dated 10.03.2023 and numbered 32128, has made significant changes to the Decision on State Aid for Investments (the Decision).
The changes are summarized below:
1. With the addition of a phrase to Article 16 of the Decision, investments related to electricity energy production have been included in the list of investments for which no investment location will be allocated.
2. With the addition of a new paragraph to Article 17 of the Decision, investments related to the production of vulcanized rubber bearing columns and transmission columns with US-97 code 2519.0.04 (seismic isolation devices for earthquake damage prevention, epoxy-coated prestressing tendons, etc.) have been included within the scope of priority investments. In line with this arrangement, item (ğ) of footnote 9 in Annex 2B of the Decision has been repealed.
3. With the change in Article 24/10 of the Decision, within the scope of regional incentive applications, investments in electricity energy production from unlicensed solar and wind energy can be completed by submitting the certified copy of the temporary acceptance certificate, the completion visa, and the sworn financial auditor’s report.
4. With the addition of Temporary Article 16 to the Decision, for investments in the provinces of Adana, Adıyaman, Diyarbakır, Elazığ, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye, Şanlıurfa, and Sivas’ Gürün district, which were applied for before 06.02.2023 and are ongoing as of this date, the validity of investment incentive certificates will be extended for three years without any request.
5. With the addition of Temporary Article 17, for investments in these regions, under the current incentive certificates and those that will be issued for applications made by 31.12.2024, the following provisions will apply:
- In case of non-fulfillment of the repayment obligation for loans used for the financing of investments and financial leasing borrowings, from the 3/2023 period maturity to the 3/2025 period maturity (including the specified periods), no action will be taken regarding the non-fulfillment of repayment obligations in terms of interest or profit share support payments. If the repayment obligation is fulfilled after the due date, the support payment will be made, assuming that the obligation was fulfilled on time.
- The refinancing credit, which will be used to collect and liquidate the remaining part of the loan, and which will be reported to the Ministry by the intermediary institution within the investment period of the incentive certificate, will not be considered an additional credit.
6. With the amendment in Annex “SECTOR NUMBERS RELATED TO SECTORS THAT CAN BENEFIT FROM REGIONAL SUPPORT IN PROVINCES” (Annex 2B) of the Decision, the sector with code 6, leather tanning and processing, has been added to the list of sectors eligible for regional support in the provinces of Manisa, Kütahya, Afyonkarahisar, Kırşehir, and Sivas.
You can access the relevant Presidential Decree here.
Sincerely,
BİLGENER
