On 9 March 2023, the European Commission endorsed amendments to the General Block Exemption Regulations (GBER) that incorporate measures to make it easier, simpler and quicker for Member States to grant support to key sectors for green and digital transitions in line with the European Green Deal.
The European Green Deal is a set of policy initiatives aiming to reduce greenhouse gas emissions across the EU by at least 55% by 2030 (from 1990 levels), with the aim of Europe becoming the first climate-neutral continent by 2050.
The proposed amendments to the GBER are indeed a further step taken under such an action plan in order to incentivise green and digital investments. The amendments will be formally adopted and enter into force in the coming weeks, and one may therefore expect further developments locally in connection with sustainability-related incentive schemes.
The endorsed amendments to the GBER grant more flexibility to Member States in designing and implementing support measures in sectors that are key for the transition to climate neutrality and to a net-zero industry.
In particular, they include the following:
The amendments include an increase in the possibility for aid to support the roll-out of renewable energy, decarbonisation projects, green mobility and biodiversity to facilitate investments in renewable hydrogen and to increase energy efficiency.
To provide legal certainty and regulatory stability, the EC has considered it appropriate to extend the GBER issued in 2014 and incorporate these new green deal amendments by a further 3 years until 31 December 2026.
It is therefore expected that Member States transpose these positive amendments into their national legislation in the coming months to further facilitate and simplify the support for sustainable and green initiatives as well as to assist the transition into a more digital economy.
24 May 2023: Primary MicroInvest application for Companies
Companies wishing to apply for this scheme in relation to eligible capital expenditure and increased wage costs incurred in 2022 should submit the online application by 24 May 2023. For such applications, the tax credits awarded in the Incentive Entitlement Certificate (up to €50,000 / €70,000 (as applicable) over a three-year period) may then be utilised from the year of assessment 2023.
30 September 2023: Application deadline for the Invest Scheme
The Invest Scheme issued in 2022 provides aid in various forms, including cash grants and tax credits, to certain undertakings in respect of qualifying expenditure incurred on an initial investment project (as defined) having a start of works date commencing after 1 May 2022.
Although this Scheme is applicable until 31 December 2023, initial investment projects commencing up to 31 December 2026 may still qualify for aid under this scheme, provided that the relevant application form is submitted to Malta Enterprise by no later than 30 September 2023.
Further information on the said schemes may be found here.
