Smart and Sustainable Investment Grant

Deloitte Malta Gi3 Alert

14 October 2021

Malta Enterprise have launched a new scheme entitled, Smart and Sustainable Investment Grant (the ‘Scheme’), which is intended to support the undertaking of investments that lead to more sustainable and digitalised processes.

The incentive

The aid intensity for the grant offered by the Scheme is 50% of the eligible expenditure, up to a maximum grant of €50,000 per project. Moreover, a tax credit of up to €20,000 per project may be awarded as an additional 10% or 20% of eligible costs, if the project meets any one or two respectively, of the following criteria:

a. The project results in new investment (including expansion of existing investments) in Gozo;
b. The project is carried out by an undertaking which has been established for less than three years;
c. The project is supported by an independent carbon footprint audit and assessment demonstrating a significant reduction in the applicant’s carbon footprint.

The aid intensity for this Scheme is subject to the de minimis threshold of €200,000 (or €100,000 in the case of single undertakings providing road freight transport for hire or reward), over a rolling period of three consecutive fiscal years.

Eligible beneficiaries

The Scheme is open to undertakings engaged in an economic activity which meet the following eligibility criteria:

a. Planning an investment project of at least €10,000 having the aim to achieve sustainability, improved environmental performance or digitisation leading to growth potential;
b. The applicant must not have any dues related to VAT, Income Tax, and Social Security which are older than 12 months;
c. The applicant must not be engaged in activities specifically excluded under the EU de minimis regulation; and
d. The applicant must have at least one full time employee registered with Jobsplus.

Eligible costs

The Scheme may support costs incurred in order to achieve one or more of the following investment outcomes:

a. Waste minimisation – reducing materials use per unit of production;
b. Sustainable materials – reducing impact of product on global environment;
c. Energy efficiency – reducing energy use per unit of production;
d. Water efficiency – reducing water use per unit of production;
e. Sustainable digitalisation – digital solutions to enhance environmental performance.

A technical analysis by a competent person quantifying the environmental and energy savings to be achieved through the project is required. Costs incurred prior to approval will not be deemed eligible. Supported investments must be implemented within 12 months following funding approval, with the beneficiary agreeing to sustain the investment for at least three years.

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.

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