Grants for Investments

Cash Incentives Program: GRW

One major program directs the allocation of grants for investment. The "Joint Task for Improving Regional Economic Structures" (Gemeinschaftsaufgabe - GRW), throughout predefined regions in Germany. The assisted regions are published for each funding period and are highlighted on the "funding regions map."

The program is supervised by the Federal Ministry for Economic Affairs and Climate Action (BMWK). Based on EU regulations and authorization by the European Commission, it defines eligible investments and the maximum possible incentive rates available for the assisted regions throughout Germany.

The BMWK has defined refinery sites and port areas in Germany as special support regions in order to master the specific challenges posed by geopolitical developments and economic transformation. 

 Germany Trade & Invest  has established the Taskforce Transformation to attract investors to and internationalize the eastern German refinery sites and the port regions as well as securing the future of the PCK Schwedt refinery. (More).

Each German federal state with funding regions has its own specific regulations for allocating GRW incentives within the "Joint Task for Improving Regional Economic Structures" framework.

GRW program funds must be applied for before the investment project begins. The application process is administered by the relevant federal state governments.

GRW Funding Rates

The BMWK has defined maximum possible incentive rates for all regions eligible for funding throughout Germany. The actual incentive levels vary from region to region subject to economic indicators, the nature of the investment and the company size. A general distinction must be made between investments made to set up new manufacturing or service sites and those investments in the transformation towards a net-zero economy. 

Grants for Site Investment

Companies can be eligible for investment grants in assisted regions in order to set up new or expand existing facilities, the diversification of production and for the acquisition of businesses threatened with closure.

Regions with the highest incentive rates offer grants of up to 45 percent of eligible expenditures for small enterprises and grants of up to 25 percent for large enterprises.

Grants for Energy Efficiency/Environment Protection Measures and In-house Energy Production from Renewables for Own Demand Coverage

Company investment projects in assisted regions that go beyond national and EU rules on energy efficiency (excluding the building sector) and environmental protection or investments to improve environmental protection levels where such regulations do not exist can build on the grant program.

The GRW program  also offers companies the opportunity to apply for grants for investments to cover predominantly own used energy produced from renewables.

The incentives levels depend on the investment project focus and the company size. Grants of up to 65 percent of eligible expenditures for small enterprises and grants of up to 45 percent for large enterprises are available. 

Grants for the Transition to a Net-Zero Economy

With the publication of the new GRW framework in January 2024, incentives are available for the production of relevant equipment for the transition towards a net-zero economy across the whole value chain until the end of 2025. Eligible sectors include the production of batteries, photovoltaic modules, heat pumps, electrolyzers and equipment for carbon capture as well as the production or recovery of related critical raw materials required for the manufacturing of the relevant net-zero economy equipment. 

Eligible Costs as Factor for Grant Calculation

The calculation of the possible amount of cash incentives available through the GRW program in assisted regions depends on the company size and the investment objective.

When investing in new sites, either of the actual investment costs (e.g. for buildings or machinery) or wage costs (including social security contribution) for two subsequent years are eligible for funding.

In the case of energy efficiency or environment protection measure investments, the eligible costs are those additional costs necessary to surpass German or EU norms.

The regulations of the European Commission must be applied for the calculation of the eligible costs concerning an investment in equipment for the production of energy from renewables to cover own energy demand,  The relevant rules define different approaches to determine eligible costs.

Germany Trade & Invest's incentives experts are happy to provide free information concerning possible incentives rate calculations and application process steps in advance.

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