The European Commission approved (SA.120705) Hungary's €4.1 billion CISAF support program, which aims to expand clean technology (cleantech) manufacturing capacity. The aid is intended to encourage investments based on the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on June 25, 2025.
Hungary announced the measure under Section 6.1 of the CISAF, therefore cleantech investments that are aimed at manufacturing net zero emission technologies listed in Annex II of the CISAF or key components directly related to them are eligible for support under the program.
CISAF support may take the form of non-repayable grants or corporate tax credits, which investors are expected to be able to combine.
What non-repayable CISAF support will be available in Hungary?
The non-refundable grant will be administered by HIPA, and its main conditions are as follows:
| How long is CISAF EKD support available? | Until December 31, 2030. |
| Where is the support available? | Throughout Hungary |
| What are the conditions for receiving support? | Support may only be granted if the investor proves that, without the support, the project would be carried out outside the EEA. However, this does not need to be examined if the applicant receives a "seal of sovereignty" for the investment project from the Innovation Fund. |
| What activities are eligible for support? | Establishment or expansion of manufacturing activities, primarily in the following areas: solar, wind, hydrogen, and battery technologies, heat pumps, geothermal, biogas, and CCS technologies, energy efficiency and power grid improvements, alternative fuels, biotechnology solutions, decarbonization industrial technologies, electric drive systems, and nuclear technologies. |
| What are eligible costs? | Eligible costs cover the costs of complex investments in accordance with EKD subsidies: purchase or lease of land, construction and building costs, other infrastructure, machinery, equipment, intangible assets, work machines, and vehicles used on site. |
| What is the maximum subsidy? | The maximum aid varies by region: Budapest: 15%, max. EUR 150 million; Rural areas: 35%, max. EUR 350 million For small and medium-sized enterprises, the SME bonus is +20% and +10%. |
Detailed documentation is required to apply for the subsidy, in which the company must demonstrate, among other things, what additional burdens the planned investment outside the EEA would entail for the company, and this alternative scenario must also be supported by detailed financial data.
Hogyan működik a CISAF támogatás a fejlesztési adókedvezményben?
With the amendment of the corporate tax law on January 1, 2026, cleantech investments will also be eligible for development tax credits, which, similar to EKD support, are aimed at the production of net zero emission technologies listed in Annex II of CISAF or key components directly related to them.
In the form of development tax credits, up to 15% but no more than €150 million in subsidies are available in Budapest, while in other areas up to 35% but no more than €350 million in subsidies are available.
The development tax credit can be claimed in the tax year in which the investment is completed and in the following 12 tax years. The credit can be claimed each year up to 80% of the corporate income tax payable.
If you are interested in the detailed conditions of the subsidies, please feel free to contact our colleagues.
