Deadline for submitting applications will end on 31/03/2017

IG228 - JOB-CREATING INVESTMENT PROJECTS (2016)

Purpose / Objective

Projects aimed at investing in building work, machinery and other equipment for the purpose of creating a new establishment or extending existing premises with a high potential for the creation of direct or indirect employment.

Types of support

Non-repayable grant involving a non-competitive tender.

Potential beneficiaries

1.- Small and medium sized enterprises (SMEs) that meet the following requirements:

a) Those that intend to make an investment in a centre of work located in the autonomous region of Galicia.
b) Those that carry out any of the activities eligible for subsidies at the centre indicated in these regulations for each type of project eligible for subsidies.
c) Those that make a contribution towards the investment project of at least 25% of the costs eligible for subsidies, not including any type of public funding, either from their own resources or by means of external financing.

2. These conditions as beneficiaries will not apply to small and medium sized enterprises subject to any order for the recovery of subsidies resulting from a decision by the European Commission.

3. These conditions as beneficiaries will not apply to companies in crisis.

4. . These conditions as beneficiaries will not apply to companies subject to any of the situations described in Articles 10.2 and 10.3 of Galician Law 9/2007 on Subsidies, or any that fail to comply with the obligations of Article 11 of the same Law on Subsidies.

Sectors eligible for subsidy

Activities associated with Appendix II of the regulatory framework.

In the case of activities associated with tourism, the projects eligible for subsidies will be limited to extending an existing establishment or making substantial changes to the establishment, except in the case of newly established projects for active tourism, spas or thalassotherapy centres. In this case, a report will be required from the Galician Tourism Agency regarding the cataloguing of the activity as active tourism.

Main project requirements

Subsidies will be available for investment projects that create employment by small and medium sized enterprises that meet the following requirements:

1. The project must meet any of the following requirements:

I. The creation of a new establishment or the extension of an existing establishment that involves an investment eligible for subsidy of at least €150,000 and less than €900,000, excluding taxes, duties and levies, and the maintenance of existing jobs.

II. The creation of a new establishment or the extension of an existing establishment that involves an investment eligible for subsidy of at least €50.000 and less than €150,000, providing this involves the net creation of employment associated with the investment, whose wage costs for the one-year period for the jobs to be created amounts to between €150,000 and €900,000, excluding taxes, duties and levies.

III. The creation of a new establishment or the extension of an existing establishment that involves an investment eligible for subsidy of at least €900.000 excluding taxes, duties and levies, and less than €2,000,000, providing these correspond to activities that are not considered meritorious by Law 50/1985 of 27 December on Regional Incentives, and involve the creation of permanent employment.

2. The project must involve an investment to develop the activities detailed in Appendix II.

3. The requested subsidy must serve to incentivise the project that is presented. In this case, before commencing the project, the applicant must have presented a request for the subsidy. None of the alleged costs for which the subsidy is requested may be incurred prior to making the application: should this occur, no part of the project will be considered as eligible for funding, in accordance with the requirement of the incentive effect. A project will be considered as having started when there is a first firm commitment for building work to start or a request for any other type of investment; projects shall be considered as the investments included in the request for funding. The purchasing of land and preparatory work such as obtaining permits and carrying out feasibility studies will not be considered as representing the start of work.

4.- Investment projects associated with a public service management contract will not be eligible for funding, except those corresponding to activities that have traditionally been provided by private companies, at their own risk and responsibility, and whose clients are also private companies.

In the case of the job-creating projects defined in paragraphs II and III of Section 1, and the case of newly established enterprises being as defined in paragraph I, the applicant must agree to create permanent employment. Also, for the type of projects defined in paragraph III, the IGAPE will indicate a specific amount of own resources in the award documents, which must be accredited by the beneficiary.

Investments or eligible costs

i) Building work: offices, laboratories, social and healthcare services for personnel, the storage of raw materials, production buildings, industrial services buildings, storage of finished products and other structures associated with the project.

ii) The acquisition of buildings or constructions for an amount of no more than 10% of the total cost eligible for funding.

iii) Equipment: process machinery, specific installations for the activity eligible for funding, internal transportation equipment and resources, special vehicles for exterior transportation, environmental protection resources and other equipment associated with the project. Exterior transportation resources and equipment are not eligible for funding in the transport sector.

iv) Other investments in tangible fixed assets, including furnishings.

v) Intangible assets for a maximum of 50% of the investment eligible for funding.

Wage costs will also be eligible for funding for a period of one year in the case of projects detailed in section 1.II above. Wage costs will be considered as the amount comprising the gross salary, i.e. before tax and obligatory contributions such as social security payments.

The execution period for the project will be presented by the applicant in the investment plan, and may not exceed 12 months, calculated from the date of being notified of the awarding of the subsidy. In the case of the project detailed in section 1.II above, where the base amount eligible for funding consists of wages for a period of 12 months, this will be calculated from the date when the investments are planned to end.


The requested subsidy must serve to incentivise the project that is presented. In this case, before commencing the project, the applicant must have presented a request for the subsidy. None of the alleged costs for which the subsidy is requested may be incurred prior to making the application: should this occur, no part of the project will be considered as eligible for funding. A project will be considered as having started when there is a firm commitment for building work to start or a request for any other type of investment; projects shall be considered as the investments included in the request for funding. The purchasing of land and preparatory work such as obtaining permits and carrying out feasibility studies will not be considered as representing the start of work.
Investments eligible for subsidies will be those that are carried out and paid within the execution period of the project indicated in the award decision in order to comply with the conditions established therein. This period will start on the date of presenting the application for funding, and will end on the date which, based on the nature of the project, is defined in the award document, which may not exceed the maximum execution period indicated in the application process.

The investments must be acquired outright from third parties by the beneficiary of the funding, contracted and paid directly between the beneficiary and the end supplier. The suppliers may not have any connections with the applicant company.

All investments must be made in new goods.
The goods to which the investment refers must be acquired outright from third parties by the beneficiary. In the case of acquiring goods by means of deferred payment, these must also become the outright property of the beneficiary before the end of the execution period for the project, with an indication at that time that all outstanding amounts have been repaid.

Suppliers may not be associated with the applicant or with any of its executive or managerial bodies. Under no circumstances may the beneficiary grant the total or partial execution of the activities.

In the case of intangible assets, in order to be considered as eligible for funding, these must also meet all of the following conditions:
1) they must only be used in the establishment of the beneficiary of the funding;
2) they will be considered as depreciable assets;
3) they must be acquired from third parties with no connections to the purchaser, in market conditions,
4) they will only be included in the company’s assets, and must remain on the beneficiary’s premises for a minimum of 3 years.

When the amount of the investment eligible for funding exceeds the amounts indicated in the Law on Public Sector Contracts for minor contracts, the beneficiary must request at least three different quotations from different suppliers prior to contracting the execution of works (€50,000), the provision of the service or acquisition of the goods (€18,000).

Under no circumstances may the acquisition cost of the investments eligible for funding exceed the market value.

Investment projects associated with a public service management contract will not be eligible for funding, except those corresponding to activities that have traditionally been provided by private companies, at their own risk and responsibility, and whose clients are also private companies.

Amount of aid

The subsidy may be for up to 35% of the eligible investment in the case of small enterprises, and up to 25% in the case of medium-sized enterprises.

Deadline for submitting applications

The deadline for presenting applications will begin on 4 January 2016 and end on 16 December 2016, or as soon as the credit set aside in the budget has been exhausted.

Incompatibility

These subsidies may be compatible with the financial support programmes of the Institute, which may include loans or interest rate subsidies, together with any other type of subsidy or funding granted by other public or private bodies financed with ERDF funds, up to the maximum limit for funding granted in the following GGE (gross grant equivalent) terms:

- Up to 25% for medium-sized enterprises.
- Up to 35% for small enterprises.

However, this limit may be lower, depending on the analysis of the regulatory framework for concurrent funding.

The Galician Institute for Economic Promotion must be notified immediately of the awarding of any other subsidies or funding of this kind.

Legislative Reference

Resolution of 28 December 2015 (published in the Official Bulletin of Galicia No. 247 on 29/12/2015) - Regulatory Framework and Call for 2016.

Information and processing in

* Information:

- In the territorial offices of the IGAPE
- From the telephone helpline on 900 81 51 51 or 981 54 11 47
- At www.igape.es or informa@igape.es

* Presentation of applications:

Applications must be presented using a form describing the situation of the applicant and the project for which funding is requested, using the application available on the website http://www.tramita.igape.es

The IGAPE has a telephone helpline available to provide help in filling in the questionnaire, on 900 81 51 51 or 981 541 147

Once the form has been completed and the data accepted, the application must be presented together with the following documentation:

1. National identity document of the legal representative, only if their consultation is not authorised.
2. Tax registration number of the applicant company, only if their consultation is expressly denied.
3. Certificate from the Spanish Tax Office (AEAT) of registration with the Economic Activities Tax (IAE), only if their consultation is expressly denied.
4. Articles of association and statutes, duly registered with the competent registry office, and any subsequent amendments to the same.
5. Power of attorney for the representative presenting the application, registered with the competent registry office as necessary.
6. In the case of companies in the process of creation:
i) Certificate from the General Registry of Trading Companies of the General Directorate of Registries and Notaries Public of the Spanish Ministry of Justice or from the competent registry, indicating that the future name of the company being constituted has not already been registered.
ii) Proposal for the company’s articles of association.

In these cases, accreditation must be provided of the company having been duly constituted before the decision on the award is published. For this purpose, the documentation described in sections 4 and 5 above must be presented at the offices of the IGAPE within a maximum of three months from presenting the application. If this documentation has not been presented within this period, or if the documentation presented is incorrect and is not corrected within ten days, the IGAPE will close the file on the applicant.
7. Corporation tax declaration for the last complete financial year.
8. Accreditation of number of jobs existing prior to the application:
i) TC1 and TC2 forms from the Spanish Social Security Office for the 3-month period (or 12-month period for the projects defined in paragraph ii) of Section 1, subsection b) of Article 1 used as the basis for wages) prior to the date of presenting the application, for all of the company’s centres of work in Galicia. In the case of activities of a highly seasonal nature, applicants may request that the beneficiary’s average employment figure be taken into account for the 12-month period prior to making the application.
ii) Certificate from the General Treasury of the Social Security Office of employees contributing to the Social Security system according to their different types of contract, and for all of the company’s centres of work, on the date of requesting the funding.

9. The three quotations the beneficiary has to request according to the provisions of section 2 of Article 1.
10. Plans.
i) A diagram showing the location in the municipal district.
ii) A general plan of the facilities, showing the initial situation and the situation after the investment has been made.
iii) Layout plans, showing the newly constructed spaces and where new equipment will be installed.
11. A descriptive report of the planned investment, which must be filled in on the electronic application form.
12. Declaration of the company’s status as an SME, which must be fill in on the electronic application form.
13. A declaration by the legal representative of the company of having the administrative, financial and operative capacity to achieve the objectives of the project.

The application form, together with the documentation, may be presented:
- electronically (with the digital certificate of the company’s legal representative)
- on paper, at the registries of the IGAPE or by any of the methods indicated in Law 30/1992

Observations

The maximum period for determining and notifying the decision will be 5 months from the presentation of the application form.

The execution period for the projects will end on the dates indicated in the award document, which may not be any longer than 30 June 2018.

In the case of projects whose maximum execution period is 30 June 2016, the beneficiary must present the request for payment no later than 11 July 2016.
In the case of projects whose maximum execution period is 30 June 2017, the beneficiary must present the request for payment no later than 11 July 2017.
In the case of projects whose maximum execution period is 30 June 2018, the beneficiary must present the request for payment no later than 11 July 2018.