Following the European Commission’s approval in terms of the State Aid Temporary Framework, Malta Enterprise Corporation (‘MEC’) has recently launched a temporary support measure targeting the development of products or technologies that are relevant to the COVID-19 outbreak.
This scheme has a budget of €11.5m and provides for aid supporting undertakings (including self-employed persons) that invest in the development of production units and solutions resulting in products and services that:
Eligibility for the aid is subject to the satisfaction of a number of conditions and criteria.
The aid is in the form of a cash grant (or, subject to conditions, a repayable advance) amounting to 80% of eligible costs incurred in carrying out the “eligible project”. The project must be completed within six months commencing from the date when the assistance is granted (a reimbursement mechanism may apply if such deadline is not met).
The scheme also allows for the possibility of an additional bonus in the form of a tax credit at the rate of 15% of eligible costs if the project is completed within two months from the date when the aid is awarded or approved, or is carried out in collaboration with another undertaking situated in another Member State (which is also receiving support from that Member State).
Eligible projects are those commencing on or after 1 February 2020 involving the production or development of COVID-19 relevant products or technologies such as:
Projects commencing before 1 February 2020 may be considered eligible subject to specific criteria and restrictions.
Aid is awarded in respect of the following costs incurred after 1 February 2020:
This temporary incentive scheme is available until 31 December 2020.
Interested parties should apply for this scheme by submitting to MEC a document describing the project in detail and disclosing other prescribed information, together with other required supporting documentation.