On June 25, 2025, the European Commission adopted the Clean Industrial State Aid Framework (Clean Industrial State Aid Framework, „CISAF”), which allows Member States to accelerate the green transition of the manufacturing industry, the spread of clean energy and technology, and the decarbonization of the sector through targeted state aid. How long can Member States continue to introduce state aid to support the green transition? CISAF will apply until the end of 2030, replacing the temporary crisis and transition framework (TCTF) currently in force, and will provide long-term predictability for businesses and investors. The entry into force of CISAF does not mean that these funds will automatically be available to businesses, as it is now up to Member States to launch their own state aid programs that fit within the framework. What are your main focus areas and what level of grant can be requested? Within the framework of CISAF, the European Commission has defined the conditions for state aid and the level of grant that can be provided in several priority areas, such as the promotion of renewable energy, the introduction of low-carbon fuels, the transition to non-fossil fuels, industrial decarbonization, and investment funding for clean manufacturing technologies. ...
Recent economic challenges have forced many companies to rethink their plans. However, these changes affect not only business strategies but also the use and usability of previously awarded investment funding. This year, we have encountered numerous cases where our clients’ plans have significantly changed due to shifts in the market environment, putting their funding at risk. Based on our experience, the following three factors are the most common reasons why companies become uncertain about whether they can actually utilize and retain their funding. The good news is that, with proper professional guidance, these situations can often be resolved—and the funding can usually be preserved. 1. Suspension or major restructuring of the investment Rapidly changing business priorities and evolving cost structures may lead to previously planned projects—such as real estate developments or large-scale asset acquisitions—being deprioritized. In such cases, it is crucial to reassess the funding agreement and reevaluate the project’s objectives. Key questions: In many cases, a compromise solution can be found that allows the funding to be retained—for example, by partially fulfilling the original objectives or incorporating new development elements that align with current business needs. 2. Difficulties in creating or maintaining committed jobs A decline in orders, reduced shifts, or downsizing of production capacity often leads to companies being unable to meet the headcount commitments set out in the funding agreement. This can be particularly critical during the maintenance period, when opportunities for modification are significantly limited. The key: proactive replanning In such cases, careful planning is essential: companies must assess how to remain compliant with legal and contractual requirements in a changed business environment and how obligations can be adjusted without jeopardizing the lawful use of the funding. 3. Changes in company structure: transformation, relocation, mergers Companies naturally respond to economic changes by consolidating sites, relocating operations, or restructuring ownership. However, these changes can significantly impact not only operations but also the validity of funding agreements and the fulfillment of commitments. In such situations, it is essential to ensure: A single missed notification or misinterpreted contractual provision can have serious consequences—in extreme cases, it may even lead to the repayment of already disbursed funding. At the same time, our experience shows that there is almost always a professionally sound solution that allows the funding to be retained, provided the changes are handled in ...
Implementing research and development (R&D) projects requires significant financial investment, which is why R&D funding opportunities can be a great help for companies and institutions. However, to account for a project’s R&D eligible costs under a grant or tax incentive, specific accounting and financing rules must be followed. Only those expenses directly related to the project, incurred during the project’s execution, and used exclusively for its implementation can be accounted for as eligible costs. Furthermore, if a project includes multiple activities, they must be classified into different R&D categories, such as applied research or experimental development, to determine the amount of eligible support. So, what R&D eligible costs can be determined exactly? Let’s take a look at the key categories: 1. Depreciation of Buildings and Infrastructure R&D projects often require specialized laboratories or other research facilities. The rent or depreciation of these buildings can be accounted for, but only to the extent they are actually used for the project. Example: A biotechnology company launches an R&D project to develop a new pharmaceutical product. The research takes place in ...
Significant changes are expected to take effect from April 2024 regarding the conditions for VIP Cash Grant (Investment Incentive in Hungary), as outlined in the draft legislation. The aim of these modifications is to encourage investments with higher added value, support economic growth, and promote the development of disadvantaged regions. These changes will impact several areas, including the minimum required investment amount, revenue and wage commitments, and new mandatory obligations. The expected changes to the conditions of VIP cash investment incentive in Hungary are summarized in the table below: Current VIP Cash ...
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