Further Changes to the EKD Regulation: Focus on Health Research Institutes and Clean Industry

The eligibility rate for contract research with higher education institutions will significantly increase, with the maximum intensity rising from 50% to 75%. Furthermore, contract research carried out jointly with healthcare institutions will now be accounted for in the same preferential way as with higher education institutions. The aim is to encourage pharmaceutical and medical device companies to implement clinical research projects in Hungary.

Another novelty is the inclusion of aid under the CISAF framework into the VIP cash subsidy scheme, replacing the previous TCTF aid, under the name of support for investments related to clean industry agreement, which can be granted until December 31, 2030. The purpose of the aid is to support the production of strategic technologies or products, as well as the production or recovery of raw materials that facilitate the transition to a net-zero emission economy. This includes technologies enabling renewable energy generation and storage, as well as carbon capture, storage, and utilization. The aid can be used to cover the costs of acquiring equipment and intangible assets related to these activities for initial investments.

To apply for the subsidy, as under the previous TCTF framework, it must be demonstrated that without the subsidy, the project would be implemented outside the EEA. An exception may apply if the project has the STEP (Strategic Technologies European Platform) seal issued by the European Commission. 

The maximum intensity and amount of aid are as follows:

• In Budapest: up to 15% of eligible costs and up to the HUF equivalent of EUR 150 million. 

• In rural areas: up to 35% of eligible costs and up to the HUF equivalent of EUR 350 million.

The above maximum intensity can be increased by an additional 20% for small enterprises and 10% for medium-sized enterprises. A significant relief for SMEs is that the equipment they purchase does not need to be new. 

The commitments are essentially the same as those defined for asset-based VIP cash subsidy.

A significant relief will apply to compliance with orderly labor relations in case of the VIP training subsidy: from now on, beyond compliance at the time of application, continuous compliance for the two years preceding the application will no longer be a prerequisite.

Additionally, the previous net-zero aid will be phased out as of January 1, 2026.