Significant amendments were made to the Decree on State Aids in Investments.

Significant amendments were made to the Decree on State Aids in Investments.

With the publication of Presidential Decree No. 6923 in the Official Gazette No. 32128 on 10.03.2023, significant changes were made to the Decision on State Aid in Investments (the “Decision”).

The changes are summarized below:

1. With the addition of a clause to Article 16 of the Decision, investments in electricity production have been included among the investments for which investment site allocation will not be granted.

2. With the addition of a paragraph to Article 17 of the Decision, investments in the production of vulcanized rubber carrier columns and transmission columns with the US-97 code 2519.0.04 (such as earthquake-damage-preventing seismic isolation devices, epoxy-coated prestressed cables, etc.) have been included in the scope of priority investment areas. In line with this regulation, the item (ğ) in Footnote 9 of Annex 2B of the Decision has been repealed.

3. With the amendment to Article 24/10 of the Decision, the completion visa for investments in electricity generation from unlicensed solar and wind energy within the scope of regional incentives can now be obtained by submitting the notarized copy of the temporary acceptance certificate and the certified public accountant report.

4. With the addition of Temporary Article 16 to the Decision, investment incentive certificates issued for investments in the provinces of Adana, Adıyaman, Diyarbakır, Elazığ, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye, and Şanlıurfa, as well as the Gürün district of Sivas province, which were applied for before 06.02.2023 and were ongoing as of that date, will be extended for three years without requiring any request.

5. With the addition of Temporary Article 17 to the Decision, for investments in these areas, the following provisions apply to investment incentive certificates issued through applications made until 31.12.2024:

• If the loans used for financing the investments or the financial leasing debts are not repaid from the 3/2023 period to the 3/2025 period (including the specified period due dates), no action will be taken regarding the non-fulfillment of the repayment obligation for interest or profit share payments. If the repayment obligation is fulfilled after the payment date, it will be accepted as fulfilled on time and support payments will be made accordingly.
• The refinancing loan to be used for the collection and liquidation of the remaining balance of the credit used will not be considered as an additional credit, provided that the intermediary institution reports the refinancing credit to the Ministry within the investment period of the incentive certificate.

6. With the amendment to Annex 2B titled “SECTOR NUMBERS OF PROVINCES ELIGIBLE FOR REGIONAL SUPPORTS” in the Decision, the “leather tanning and processing” sector with the code 6 has been included among the 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