Amendment to the Smart and Sustainable Investment Grant Regulations

The Smart and Sustainable Investment Grant Regulations (SL 463.45 to the Malta Enterprise Act, Cap 463 of the Laws of Malta) have been updated by means of LN 20 of 2023, the Smart and Sustainable Investment Grant (Amendment) Regulations, 2023.

Accordingly, Malta Enterprise have updated the Smart and Sustainable Investment Grant Incentive Guidelines (hereinafter ‘the Guidelines’) in respect of the Smart and Sustainable Investment Grant Scheme (hereinafter ‘the Scheme’).

The Scheme, which has been extended till 30th November 2023, provides business funding to support investments and modifications in plant, machinery equipment and technologies that lead to a quantifiable reduction in carbon emissions.

The aid intensity under the Scheme is 50% of the eligible expenditure, up to a maximum grant of €100,000 per project. Moreover, a tax credit of up to €40,000 per project may be awarded as an additional 10% or 20% of eligible costs, if the project meets any one or two of the following criteria, respectively:

a. The project results in new investment (including expansion of existing investments) in Gozo;
b. The project is carried out by an undertaking which has been established for less than three years; and
c. The project is supported by an independent energy audit conducted by a qualified energy auditor or engineer.

The aid intensity for this Scheme is subject to the de minimis threshold of €200,000 (or €100,000 in the case of single undertakings providing road freight transport for hire or reward), over a rolling period of three consecutive fiscal years.

The Scheme is open to small, medium-sized and large undertakings engaged in an economic activity, which meet the eligibility criteria, and which are planning an investment project of at least €10,000 having the aim to achieve sustainability, improved environmental performance or digitisation leading to growth potential.

The Scheme may support costs incurred in order to achieve one or more of the following investment outcomes:

a. Waste minimisation – reducing materials use per unit of production;
b. Sustainable materials – reducing impact of product on global environment;
c. Energy efficiency – reducing energy use per unit of production;
d. Water efficiency – reducing water use per unit of production; and
e. Sustainable digitalisation – adopting digital solutions to enhance environmental performance.

Eligible investments may also include specialised technical services and procurement of technologies that enable the undertaking to measure parameters linked to the undertaking’s carbon footprint and to identify actions intended to reduce such carbon footprint. Aid for such costs must be incorporated within an eligible sustainability project and shall be capped at 20% of the total amount approved.

The applicant will be required to provide full details and costs to be incurred. Costs incurred prior to approval are not eligible. A technical analysis by a competent person quantifying the environmental and energy savings to be achieved through the project is required. The application should also include a report on the current carbon footprint, and the forecast reduction in carbon emissions following the completion of the project.

Supported investments must be implemented within 12 months following funding approval, with the beneficiary agreeing to maintain the investment for at least 3 years.

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.