The European Commission has approved Hungary’s €4.1 billion Cleantech Investment Program (CISAF) in Hungary, a scheme aimed at expanding manufacturing capacity for clean technologies. The program encourages investments under the Clean Industrial Deal State Aid Framework for Cleantech Investments in Hungary (CISAF) adopted on 25 June 2025.
Hungary notified the measure under Section 6.1 of CISAF, meaning the program supports cleantech investments in net-zero emission technologies listed in Annex II or their key components. The CISAF program may provide non-repayable grants or corporate tax incentives, which investors can combine.
CISAF in Hungary: Non-Repayable Grants for Cleantech Investments
The non-repayable grant component will be administered by HIPA (Hungarian Investment Promotion Agency). The main conditions are expected to be as follows:
| Until when is the CISAF EKD subsidy available? | Until December 31, 2030. |
| Where is the subsidy available? | Nationwide throughout Hungary. |
| What is the condition for granting the subsidy? | Funding can only be provided if the investor proves that without the subsidy, the project would take place outside the EEA. However, this does not need to be examined if the applicant receives a “sovereignty seal” from the Innovation Fund for the investment project |
| What activities are eligible for support? | Establishment or capacity expansion of manufacturing activities primarily in the following areas: solar, wind, hydrogen, and battery technologies; heat pumps; geothermal; biogas; CCS technologies; energy efficiency and power grid developments; alternative fuels; biotechnological solutions; decarbonization industrial technologies; electric drive systems; and nuclear technologies. |
| What are the eligible costs? | Eligible costs cover the complex investment costs according to EKD subsidies: land purchase or lease, construction and implementation costs, other infrastructure, machinery, equipment, intangible assets, work machines, and vehicles used on-site. |
| What is the maximum subsidy? | The maximum subsidy varies by region: Budapest: 15%, max EUR 150 million; Other regions: 35%, max EUR 350 million. For SMEs, the SME bonus is +20% in Budapest and +10% in other regions. |
Applying for CISAF cleantech funding in Hungary requires detailed documentation showing additional costs if the project were outside the EEA, supported by comprehensive financial data.
Development Tax Allowance for Companies Accessing CISAF Cleantech Funding in Hungary
Following the amendment of the Hungarian Corporate Tax Act effective from 1 January 2026, cleantech investments may also qualify for the development tax allowance, provided that they aim to manufacture net-zero emission technologies or their key components listed in Annex II of the CISAF, similarly to VIP Corporate Training Subsidy.
In the form of a development tax allowance, the following funding levels may be available:
- Budapest: up to 15%, maximum EUR 150 million
- Other regions: up to 35%, maximum EUR 350 million
The development tax allowance can be claimed in the tax year when the investment is completed and during the following 12 tax years.
Each year, the tax benefit may be applied up to 80% of the corporate income tax payable.
For companies seeking detailed conditions on the Clean Industrial Deal State Aid Framework for Cleantech Investments in Hungary, please contact our colleagues for guidance and advice.
