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Rada has approved the law on investnannies: who can receive state support

Rada has approved the law on investnannies. Photo: UNIAN

Rada has approved the law on investnannies. Photo: UNIAN

At a session on December 17, the Verkhovna Rada adopted in the second reading the presidential draft law No. 3760 on state support for investment projects with significant investments, or the so-called investment nannies draft lawl.

252 people's deputies voted "for".

It should be noted that the amount of "significant" investments for the second reading of the bill was reduced from 30 million euros to 20 million euros. Also, for the second reading, the list of industries that can qualify for state support was expanded.

Who can qualify for state support

According to the "investnannies" draft law version, the following industries can qualify for state support:

  • processing industry (except for the one that produces tobacco products, ethyl, cognac, and fruit alcohol, alcoholic beverages);
  • mining for the purpose of further processing and/or beneficiation of minerals (exceptions: coal and brown coal, crude oil and natural gas);
  • waste management, transport, warehousing, postal and courier activities, logistics, education, scientific and research and technical activities, healthcare, art, culture, sports, tourism and resort and recreational sphere.

Moreover, those projects that create at least 80% of employment with a salary that is 15% higher than the average in a particular region will be able to receive state support.

How will state support be provided:

  • in the form of tax incentives (exemption from the corporate income tax and duties payment when importing new equipment into the customs territory of Ukraine);
  • in the form of granting the right to use a land plot in order to implement an investment project with the payment of rent on special terms;
  • in the form of providing adjacent infrastructure objects (roads, communication lines, heat, gas, water and power supplies, engineering communications, etc.);
  • in the form of construction or reconstruction of such infrastructure at the expense of the state.

What else does the draft law on "investnannies" contains:

  • The document stipulates that the total amount of state support should not exceed 30% of the total investment in the project.
  • The draft also provides for the status consolidation of a state institution that includes investment managers and that is authorized by the Cabinet of Ministers to be supported by investors when they are preparing and implementing investment projects.
  • The draft law introduces the institution of a special investment agreement that will be concluded by the investor and the government.

The explanatory note to the draft law says that it has been developed in order to attract strategic investors to the country's economy, to increase the investment attractiveness of Ukraine, as well as to increase the competitiveness of the state's economy through state support for large investment projects.

Context. In the first reading, the Rada supported the draft law on July 21, 2020.

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