Investment incentives – current developments

Draft amendment to the Government Regulation

Currently, a draft Government Regulation amending Government Regulation No. 221/2019 Coll., on the implementation of certain provisions of the Investment Incentives Act, as amended (hereinafter the “draft”), is undergoing the comment procedure. The Government Regulation is an implementing legal regulation to Act No. 72/2000 Coll., on investment incentives and amendments to certain acts (Act on investment incentives), as amended.

The aim of the draft is to set up a method of quantifying the benefits from the higher added value of the supported investments, which will be used for assessing the benefits for the state budget by the authorities concerned.

According to the Explanatory Memorandum, this change is intended to contribute to greater transparency of the assessment process for applicants at the time of submission of the application for support. The condition of “higher added value” is changing and the benefits of higher added value activities will now need to be quantified. The calculation of these benefits is then newly included in Annex 5 to the draft.

In view of the current situation in Ukraine, the draft further expands the scope of strategic investment actions to include the defence industry, both in the field of production and technology centres.

Recommendations of the European Commission

In early July 2025, the European Commission issued recommendations on tax incentives to accelerate the transition to a clean industry (CID – Clean Industrial Deal) – more here.

The Commission recommends two main instruments to promote “clean” investment:

1. the possibility of accelerated depreciation up to one-off expensing in the case of investments in “clean” technologies (e.g. renewable energy systems, energy-saving technologies, etc.),
2. targeted tax breaks – in this respect, this could include, for example, extending investment incentives to other sectors.

The recommendation of the Commission follows these principles:

• Targeted support: The incentives apply only to clean technologies and industrial decarbonisation and exclude fossil fuel related investments.
• Simplicity and certainty: Measures must be easy for companies and tax authorities to implement and must have clear eligibility criteria.
• Timeliness: Incentives should provide timely support to companies making investment decisions.

Whether and how the recommendations will be implemented within the EU is not yet clear.

If you have any questions about investment incentives, please do not hesitate to contact your Grant Thornton contact person or the authors of this article directly.