Changes to the Technology Products Investment Support Program
On March 22, 2022, the Ministry of Industry and Technology (“Ministry“) amended the Regulation respecting the support program for investments in technological products (“RegulationThe amendments expand the scope of the regulations; regulate announcements on the technology product investment support program, conditions of application and scope of support; and amend procedures and principles to be applied in the evaluation process.
Amendments are available online here (In Turkey).
The main changes to the regulations are as follows:
Technology products as part of the support
- Investments for products already supported under the regulation and the installation of fast charging stations for electric vehicles now fall within the scope of the support.
- The ministry will specify the application period, call schedule, application method, project duration and budget, purpose, amount or rate of investment, and evaluation criteria in the investment aid announcement. The Ministry may announce investment opportunities at least once a year, either for a certain period or indefinitely.
- The ministry will also indicate whether a performance bond of up to 6% of the assistance amount will be required from the supporting investor in the announcement.
- Technological products whose production is largely insufficient to meet the needs of the internal market now fall within the scope of support.
- The evaluation committee may take into account the contribution to technological development, the national production capacity and the need for public support when evaluating the application.
The scope and amount of aid
- Only machinery and equipment support can be provided for investments in fast charging stations.
- Support in machinery and equipment will be provided for a maximum period of 36 months from the date of execution of the contract between the Ministry and the investor. It will cover all kinds of permanent equipment, machinery and molds, as well as relevant expenses needed for the project, such as customs, transport and insurance.
- The non-reimbursable investment support for the installation of fast charging stations can reach 75% and, in other projects, up to 60% of the expenditure of the project amount. The support rate can be increased up to 20 points if the machinery and equipment to be purchased is certified as a national product, provided that the above rates are not exceeded. In any case, support cannot exceed TRY 20 million (approximately USD 1,308,009) for fast charging stations.
- In support of machinery and equipment, software expenditures will also be assessed to determine the amount of the project.
- Up to 25% of machinery and equipment assistance can be paid in advance.
- The machines and equipment purchased as part of the support for fast charging stations cannot be sold or rented, and the right of use cannot be transferred and pledged for one year.
- The company that made the investment must submit the final report to the National Technology Directorate within three months of the completion of the project.
The processes for application, evaluation, monitoring and control, payment, finalization, support elements and contractual elements, as well as the procedures and principles relating to the implementation of the support program will be published on the ministry’s website.
With the increase in the use of electric vehicles, the ministry has expanded the scope of the support program to encourage investment in charging stations and other technological products in light of today’s needs. Information regarding the support to be provided can be found in upcoming ministry announcements. Companies operating in this field can apply for investment support programs by following the announcements of the ministry.
The content is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This may qualify as “lawyer advertising” requiring notice in some jurisdictions. Prior results do not guarantee similar results. For more information, please visit: www.bakermckenzie.com/en/disclaimers.