With the adoption of the Temporary Crisis and Transition Framework (TCTF) by the European Commission, Hungary has been enabled to provide significant state aid to companies considered strategically important for the green deal.
In Hungary, TCTF became available in August 2023, which can be applied for through HIPA Nonprofit Zrt. for the following investments:
- Equipment necessary for transitioning to zero net emissions, including the manufacturing of batteries, solar panels, wind turbines, heat pumps, electrolyzers, and equipment for carbon capture and storage.
- Manufacturing of key components of these equipment.
- Production or recovery of critical raw materials necessary for the production of the aforementioned equipment and essential components.
TCTF support is available throughout Hungary until 2025. The maximum aid amount is up to 350 million EUR in rural areas, with a maximum intensity of 55%, and up to 150 million EUR in Budapest, with a maximum intensity of 35%. Any aid exceeding these values can only be provided with prior approval from the European Union Commission
An important condition for the support is that the investor must prove that the project would not have been realized outside of the EEA without the support.
Companies that have already applied for investment aid for investments falling into the above three investment categories, but which the EU Commission has not yet approved, or for which the support contract has not yet been concluded for other reasons, may decide to take advantage of TCTF if they meet the above criteria. According to Paragraph 85 of the TCTF, this can significantly expedite the state aid process as it does not require waiting for prior approval from the EU Commission.
TCTF provided by HIPA can be combined with tax incentives within the above maximum limits.
If you are interested in the program details, please contact colleagues of ibsh or write to info@ibsh.hu .
