29.08.2024/40
Important Amendments to the Decree on State Aids in Investments
On 29.08.2024 dated and 32647 numbered Official Gazette, the Decree Amending the Decree on State Aids in Investments (Decree No: 8860) was published.
The amendments made by the said Decree are summarized below:
1. In case of cancellation of the Incentive Certificate or partial sanction in investments where interest/profit share support is applied, the interest to be applied to the support amount to be withdrawn will be determined according to the rate of late payment interest.
According to Article 11 of the Decree No. 2012/3305 on State Aids in Investments, the portion of the interest or profit share to be paid for the portion of the investment loans with a maturity of at least one year to be used from banks for investments up to seventy percent of the fixed investment amount registered in the incentive certificate, determined according to criteria such as the region where the investment is made, the type and subject of the investment, can be covered from the budget of the Ministry of Industry and Technology.
In the event that the incentive certificate was canceled or a partial sanction was imposed, the amount of overpaid interest or dividend support was to be recovered by the intermediary institutions with the interest to be calculated from the date of each payment by applying the interest or dividend rate applied on the date the loan was extended or the borrowing was made.
This time, the regulation related to the Decree No. 8860 has been amended and the interest and profit share supports paid will be recovered together with the interest calculated by taking into account the default interest rates specified in Article 51 of the Law No. 6183 as of the date of payment.
2. Support for Photovoltaic Solar Panel Production Investments is Subject to Certain Conditions.
Annex (4) of the Decree No. 2012/3305 on State Aids in Investments sets out the investment subjects that will not be incentivized or whose incentives are subject to certain conditions. Solar panel production investments were previously not included in this list.
Amendment to Decree 8860 to support investments in this area,
- The manufacturing process is integrated with the solar cell produced, starting at or before the ingot slicing stage; and
- Not exceeding cell production capacity conditions.
As it will be remembered, on 25.08.2024, for those who invest in solar power plants, the Communiqué regulation was made that solar panels produced without using domestically produced solar cells starting from the ingot slicing stage or a stage before the production process will not be evaluated within the scope of investment expenditure (Our Circular dated 27.08.2024 and numbered 39).
With both amendments, the criteria for both panel producers and users to benefit from incentives have been regulated in parallel with each other.
3. Amendments have been made to the List of Machinery and Equipment that cannot benefit from Customs Duty Exemption.
Article 9 of the Decree No. 2012/3305 on State Aids in Investments regulates customs exemption for investments made within the scope of the incentive certificate.
Annex (8) of the aforementioned Decree includes the List of Machinery and Equipment that cannot benefit from Customs Duty Exemption. With the Decree No. 8860, the said list has been amended and the number of machinery and equipment that cannot benefit from the exemption has been increased from 203 to 223.
You can access the updated list and the relevant Decision here.
Sincerely,
BİLGENER
