June 6, 2022

A new Act on Investment Promotion has entered into force

New Act on Investment Promotion (OG 63/22) amending former Act on Investment Promotion has:

– lowered the criterion of the registered unemployment rate as a precondition for the use of non-refundable financial support for eligible costs of job creation and capital costs of the investment project;

– in the context of job creation and mitigation of the negative economic consequences of the COVID-19 pandemic, enabled investment aid beneficiaries to apply for an additional year for the creation of planned new jobs related to the investment project, on top of the already approved one-year extension of the three-year investment project;

– aligned with the relevant acquis communautaire (Commission Regulation (EU) 2021/1237 of 23 July 2021 amending Regulation (EU) No 651/2014) by introducing a new provision whereby, in the event of a temporary or permanent reduction of staff investment project in the period from 1 January 2020 to 30 June 2021 due to the COVID-19 pandemic, this reduction will not be considered as a breach of the obligation to preserve new jobs in the area by the beneficiaries of regional investment aid;

– aligned itself with the new Map of Regional Aid of the Republic of Croatia.