Incentives for Support in the Free State of Saxony
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Incentives for Support in the Free State of Saxony
Incentives for Industrial Setups
Fall into Three Basic Categories
Incentives
Incentives for R&D, Employment and
Support in investments technology transfer and qualification support
innovation
Financial Support of:
and Loan • Individual and Employment Qualification
monetary Programs joint projects Support Support
incentives and • Technology transfer
Equity Support • Innovation bonus
(“InnoBonus”)
• Investment • Innovation experts
grants (“InnoExpert”)
• Transfer assistant
• Investment • Innovation teams
loans • (“InnoTeams”)
• KETs pilot lines
• HORIZON bonus
2Joint Scheme/GRW Investment Grant
❙ Support programme: Joint Federal Government/Länder Scheme for
'Improving regional economic structures’ -GRW
❙ Kind of support: Grant
❙ Eligible: intended for businesses of commercial industries, including tourism,
in the Free State of Saxony as well as non-profit, extra-university, business-
oriented research institutions
❙ Body for application and approval: Sächsische Aufbaubank – Förderbank –
(SAB)/Saxon Economic Development Bank
❙ Legal basis: inter alia, the respectively applicable Coordinating Framework
of the German Federation as well as the Directive (RIGA) of the Free State of
Saxony
3Eligibility for Support Kind of investment SME Major enterprises Setup investment Yes Yes Expansion investment Yes No Diversification Yes Yes Principal modification of the entire Yes No manufacturing process Acquisition of assets of operational sites that Yes Yes have been closed down or that are threatened by closure 4
Subsidy Value Cap Maximum* 2014 – 2020 Directorate / Rural Period Major Medium Small District enterprises enterprises enterprises Dresden Directorate/ 2014 – 2017 15 % 25 % 35 % Chemnitz Dresden Directorate/ 2018 – 2020 10 % 20 % 30 % Chemnitz Görlitz Rural District 2014 – 2020 20 % 30 % 40 % Leipzig Directorate 2014 – 2020 10 % 20 % 30 % * reduced rates of support for investment projects ≥ € 50 million 5
Subsidy Value Cap Maximum
2014 – 2020
Leipzig
Directorate 10%
20%
15% Görlitz
(from 2018 10%) Rural
Dresden District
Directorate
+ 10 % for medium-sized businesses
Chemnitz + 20 % for small businesses
Directorate
Territorial zoning as per Jan 01, 2014
6Investment Costs
❙ eligible:
❙ material expenses: acquisition and manufacturing costs of new tangible assets
(buildings, machinery/plants), intangible assets or
❙ labor expenses: jobs of above-average qualification (annual gross salary at least
€ 35 thousand)
❙ max. € 500 thousand per secured permanent job and max. € 750 thousand per
additionally created permanent job
❙ subsidized assets and jobs are subject to a binding period of five years following the
completion of investment project
❙ non-eligible: for example, expenses for purchasing property or investment substitute
acquisition
7Investment Incentives
Support Requirements
▌ Eligible parties: commercial businesses, including the touristic sector with cross-regional
sales
▌ Secured overall funding of the project
▌ The contribution by the beneficiary of the grant to funding the investment project must
amount to at least 25 % of the overall funding.
▌ This minimum contribution must not include any subsidy-relevant elements.
▌ The share of equity to be contributed by the beneficiary of the grant
must be at least 10 % of the overall funding.
8Investment Support
Small and Medium-sized Enterprises*
Small enterprises (SE) are independent companies that
▌ employ fewer than 50 staff and
▌ have a maximum annual turnover or annual balance total of € 10 million.
Medium-sized enterprises (ME) are indpendent companies that
▌ employ between 50 and maximum 249 staff and
▌ have a maximum annual turnover of € 50 million or a maximum annual balance total of
€ 43 million.
No SME bonus is granted for major investment projects (> € 50 million).
* Definition acc. to Annex I to EC Regulation No. 800/2008
9Single-business Investment Support
for Improving the Economic Structure
Combined Product: RIGA and RINA
RIGA = Investment Grant (GRW) RINA = Subordinated Debt
• Increase in SME productivity • Strengthening the capital structure in SME
• SME shall be supported in their
capability of participating in the growth
of regional, national and international • Protection of securities
markets as well as in the innovation
process
• Improvement of the profitability of
• Improvement in liquidity
investments
• Creating and maintaining permanent jobs
INCENTIVE EFFECT: effective by INCENTIVE EFFECT: to be shown
DIFFERENCES
applying prior to starting an investment comprehensively in the application
(Section 3.5 Regional Aid Guidelines)
10SUBORDINATED DEBT (RINA)
OVERVIEW
Combined product RIGA RINA can be applied for individually or in combination
Support requirements the same as for RIGA
Securing permanent jobs at high investment volume also for securing existing
permanent jobs
INCENTIVE EFFECT RINA is notified with respect to incentive law in
accordance with Regional Aid Guidelines; hence,
from the perspective of incentive law,
complementary requirements
Increased overall volume for the supported substantial increase in the overall volume of the
project fund (now € 80 million ERDF and € 20 million €
national co-funding)
11SUBORDINATED DEBT (RINA)
SUPPORT CONDITIONS
Target group Small and medium-sized enterprises acc. to SME definition
Exclusion from support as with RIGA
Setup of an operational site
Expansion of capacities of an existing operational site
Investment
projects Diversification of production into products not previously manufactured
(book-value criterion)
Principal modification to the production process
(criterion: depreciations effected)
Takeover of operational sites closed-down or threatened by closure
Special effort Either: by creating an additional 10% in permanent jobs
Or: by high investment volume (depreciation criterion ‘AfA’)
+ securing existing jobs
Equity At least 25 % of eligible costs
12SUBORDINATED DEBT (RINA)
DEBT CONDITIONS
min. € 20,000 (new: lower than before)
Amount loaned
max. € 5,000,000
capped per permanent job created € 500,000
calculation per job maintained € 250,000
Term max. 15 years (new: longer than before)
Repayment max. 5 years grace period, unscheduled repayment at any time
in equal, quarterly instalments
Interest rate more reasonable than in the capital market
tailor-made, dependent on creditworthiness and rating by the ‘house bank’
fixed throughout the term
Securities none
13EQUITY INVESTMENTS TGFS +
Technology Founders Funds
Funds
(Technologiegründerfonds Sachsen + /TGFS +)
• Innovation-driven business foundations (seed and start-up stage)
• young businesses with a regional focus
Focus of investment • up to seven years after their foundation
• basically open to all sectors
• with their location/site in the Free State of Saxony
open minority holdings at conditions typical for venture capital, possible in combination
Financial instruments
with mezzanine capital
• between EUR 0.1 and 4 million, max. EUR 5 million per business,
Amount of interests
• generally termed for five to eight years
Aid acc. to Commission Regulation (EC) 800/2008 (General block exemption
Aid
Regulation)
EUR 66.4 million from the European Regional Development Fund (ERDF) as well as
Fund assets
funds from private investors
Fund investors • The Free State of Saxony
• Sparkasse (savings banks) equity holdings
• CFH Beteiligungsgesellschaft mbH
Fund management TGFS Management GmbH & Co.KG
Contact www.tgfs.de
14Equity Investments WMS
Growth Fund SME Saxony
Funds
(Wachstumsfonds Mittelstand Sachsen/WMS)
• SME as well as young technology-oriented businesses
• strong growth to be expected
Focus of investment • primarily manufacturing industry and supra-regionally active service companies of a
high structural effect
• with their location/site in the Free State of Saxony
open minority holdings at individually agreed conditions, possible in combination with
Financial instruments
mezzanine capital
• generally between EUR 0.5 and 2.5 million, max. EUR 1.5 million within twelve months
Amount of interests
• Generally termed for five to eight years
Aid acc. to Commission Regulation (EC) 651/2014 (General block exemption Regulation)
Aid
EUR 40.1 million public funds from the Free State of Saxony as well as funds from private
Fund assets
investors
Fund investors • The Free State of Saxony
• Sparkasse (savings banks) equity holdings
• CFH Beteiligungsgesellschaft mbH
Fund management WMS Management GmbH & Co. KG
Contact www.wachstumsfonds-sachsen.de
15Equity Interests SBG / MBG
Saxon Equity Holding SME Equity Holding
Funds (Sächsische (Mittelständische Beteiligungsgesellschaft
Beteiligungsgesellschaft/SBG) /MBG)
• small and medium-sized businesses • foundation, succession: business founders up to
headquartered or located with their three years, young businesses, business acquirers
operational site in Saxony • growth and innovation: established businesses
Focus of • growth, re-orientation, succession, • micro-mezzanine: smallest and small enterprises
investment innovation • direct: small and medium-sized businesses
• basically open to all sectors
• focusing on the processing trade and
service provision close to production
Financial • open minority holdings • open minority holdings
instruments • mezzanine-financed • mezzanine-financed
• between EUR 0.1 and 1 million, • foundation, succession, growth, innovation:
in single cases EUR 2.8 million • dormant holding EUR 25,000 to 2.5 million
Amount of
• generally termed five to ten years • micro-mezzanine: up to EUR 50,000
interests
• direct: open minority holding up to EUR 0.5 million
• term: max. ten years
• dormant holdings subsidy-free; • may contain a subsidizing element (de-minimis
Aid
• open holding subject to de-minimis rules rules)
SBG, daughter of the Saxon Development MBG
Fund assets
Bank (Sächsische Aufbaubank)
Fund investors www.sbg.sachsen.de www.mbg-sachsen.de
16Saxon Technology Support 2014 - 2020
ERDF Technology Support
a. R&D project support (individual and joint projects)
b. Technology-transfer support
c. InnoBonus
ESF Technology Support
a. InnoExpert
b. InnoTeams
c. Transfer Assistent
Support of Pilot Linien in the Field of Key Technologies (KETs pilot lines)
HORIZON Bonus
17EFRE Technology Support
2014 - 2020
R&D Project Support
support of businesses (associated with other business, also with universities and
research facilities) in developing new products and processes in fields of future-
oriented technologies
individually or jointly pursued R&D projects
open to technology or branch of industry
incentives for, e.g., human resources, material, third-party services (e.g., assigned
research), patenting expenses (for SME only) and depreciation of facilities and
equipment required to implement the project
Basic support: 20% experimental development or 45% industrial research
Extras: 10% for medium-sized or 20% for small-sized businesses
(up to 250 or 50 staff respectively)
15% for joint projects
5% for projects of importance to the technological policy
Optionally: full cost flat rate of 25% on direct costs
18EFRE Technology Support
2014 - 2020
Technology-transfer support
support for procuring technological knowhow and for consultancy
beneficiaries: SME
adjusting developments are also eligible (with own staff, assigned research)
no* support for tangible investments
uniform rate of support up to 50%
no maximum limit of support (previously € 500 thousand per annum and applicant,
€ 200 thousand for consultancy)
* Necessitated by amendments to EU state-aid law, applicable from 2014
19EFRE Technology Support
2014 - 2020
InnoBonus
support for
third-party R&D services prior to innovation regarding products, processes or
services and
technical aid in the implementation stage.
beneficiaries: SME, including handicraft businesses, providers of engineering services
and business start-ups
conditions for support:
up to two “InnoBonuses” per calendar year
rate of support up to 50%
maximum rate of support totaling a maximum of € 20,000 per calendar year
20ESF Technology Support
2014 - 2020
InnoExpert
Innovation Assistant
• For newly recruiting graduates and young scientists to be assigned specific,
technology-oriented projects
Senior InnoExpert
• For newly recruiting highly qualified and professionally experienced staff (researchers
and engineers) to work on an R&D topic
InnoManager
• For newly recruiting staff having graduated from a facility of higher learning in the
fields of economics/business administration, sciences or engineering in order to set
up or optimize the management of innovation in the business
Senior InnoManager
• For newly recruiting professionally experienced staff (older than 54), holding a
university degree, for initiating and accompanying innovation processes
All these instruments are aimed at SME (except: support for innovation assistants in social
welfare and health enterprises is irrespective of company size); max. rate of support 50%;
max. term 30 months (except: max. term up to 36 months for female innovation assistants)
21ESF Technology Support
2014 - 2020
InnoTeam
Joint R&D projects
• Creation of innovation teams of scientific and
SME technical staff from industry and research Research
• Enabling those involved to transfer facilities
knowledge and set up networks
• SME participation is compulsory
• Research topic of importance to Saxony’s
future development
• Large businesses will not head the
consortium
• Min. three, max. twelve people
• 48 months of support Facilities of
Large
higher
enterprises
learning
“InnoTeam”
22ESF Technology Support
2014 - 2020
Transfer Assistant
• technology agencies
Task:
• technology transfer centers
• consultancy to SME
• technology incubation centers
• train SME staff
• transfer bodies of university or
• transfer innovation-relevant
extra-university facilities
know-how to SME
• consultancy businesses
Technology Research
SME
intermediaries facilities
Transfer Assistant
Support:
a grant of up to 50% of eligible labor
Facilities of
costs for up to 48 months (max. €
Chambers, higher
60,000 per person and year of associations learning
employment)
20Key Technology (KETs) Pilot Lines
new instrument, ERDF-funded (2014 – 2020)
• Support of pilot lines in the field of key
Microelectronics technologies for transferring
technological knowledge to lines ready
Information and communication technologies for production
• Entitled to applying: businesses and
Nanotechnologies research facilities (in conjunction with
businesses)
New materials
• Main responsibility for the project result
with (manufacturing) business, which is
Advanced production technologies entitled to exploitation
• Pilot line in an operational site located in
Photonics
Saxony
Biotechnologies
• High expectation of subsequent
industrial production in Saxony
24
24Key Technology (KETs) Pilot Lines
Maximum rates of support
Beneficiary: Individually In conjunction In conjunction In conjunction
with Research with
Facility Non-SME with SME
Small
70 per cent 80 per cent 80 per cent 80 per cent
enterprise
Medium-sized
60 per cent 75 per cent 75 per cent 75 per cent
enterprise
Non-SME 50 per cent 50 per cent 50 per cent 65 per cent
Research
Not eligible Not eligible 50 per cent 65 per cent
facility (RF)
25Key Technology (KETs) Pilot Lines Costs eligible for support Type of costs Individual costs Overheads Researchers, technicians, completely 25% flat other staff Instruments and equipment completely 25% flat (depreciation) Costs for buildings completely - (depreciation) Assigned research, third- completely - party performance, patents Operational costs (material, completely 25% flat travel expenses) 26
HORIZON Bonus
Instrument of support, funded out of federal-state funds
Objective: To introduce SME to projects of the Framework for Research
and Innovation of the European Union “HORIZON 2020”
Subject: To support (50%) third-party services in the context of
envisaged participation in “HORIZON 2020”
Contents of services:
To prepare, develop, design and accompany applications for
HORIZON 2020 (initial stage Euro 2,500 “simple”
participation or max. Euro 5,000 if acting as a coordinator
To establish project management and controlling (an
additional Euro 10,000 in the start-up stage if acting as a
coordinator)
To evaluate reasons for refusal in the event of failed
applications (analysis Euro 1,000)
27Incentives for Employing the Unemployed
The Job Agencies will support you in screening suitable staff and their placement. For example, upon
request all incoming applications may be pooled and pre-selected according to your requirements.
Furthermore, you may benefit from all legal incentive instruments and support programmes for the
professional integration of unemployed persons, e.g. familiarisation grants and measures for
activation and professional integration of unemployed persons at employers’ premises.
(§§ 44 et seq. and 88 et seq. German Social Code, Book III).*
Familiarisation grants Measures for activation and professional
integration
• For phasing-in employees who may be disadvantaged • Especially for unemployed people or jobseekers
in placement and for balancing a reduced capability threatened by unemployment
• Up to 50% of eligible remuneration
• Up to twelve months • Costs for appropriate participation costs for integration
• Up to 36 months for employees aged 50 and older measures taken over by the Job Agency
(limited to 31 December 2019)
• For persons with disabilities or severe disabilities • Up to six weeks for training measures conducted on the
• Up to 70 % of eligible remuneration premises of or by the employer; longer support for
• Up to 24 months (in special cases up to 96 training measures conducted at or by an external
months) training facility
* Examples shall serve just to give an initial overview of options of support. More information will be provided by your local Job Agency/the
institution responsible for providing for the basic needs of jobseekers.
28Incentives for the Qualification of
Employed Staff Supported by the
Federal Job Agency
❙ The Job Agencies may support certified further training which is performed within the
framework of existing employment and by continued payment of remuneration for that
employment. Financial support is also possible with new employment. Participants must
be trained in knowledge and skills that are generally exploitable in the job market.
Qualification which an employer is statutorily obliged to provide (WeGebAU Programme)
is exempt from support.
❙ Possibilities of promoting further training have been reorganized with the Qualification
Chance Act that came into force on January 1, 2019. Promotion of female and male
employees is facilitated regardless of training, age or company size, thus being opened
further to enable those employees to enjoy adjustment or further development in their
professional competences who exercise professions that can be replaced by
technologies, who are otherwise affected by structural change or envisage further
education to train into a sought-after job. The further training costs and grants towards
remuneration require co-funding by the employer.*
* Examples shall serve just to give an initial overview of options of support. More information will be provided by your local Job Agency.
29Incentives for Qualification
Supported by the European Social Fund
If you plan to optimally qualify new staff or prepare longstanding members of your staff for new
responsibilities: the Free State of Saxony is able to support precisely fitting qualification for your
investment project. Support is provided with view of the project as a grant towards eligible expenses and
regardless of investment-related incentives, for example. Such qualification may also be provided abroad.
Pay-check for Further In-house Training
(for businesses with their headquarters or a subsidiary in Saxony)
Company Maximum rate of support
SME (up to 250 employees) and 50%
social organisations employing up to 500 staff
Social organisations employing more than 500
40 %
staff
70%, if all participants in the qualification measure
SME (up to 250 employees) and are apprentices, low-qualified staff without any
social organisations employing up to 500 staff completed vocational training, elderly employees
aged 50 or older
30You can also read
