Grants Program by virtue of The Encouragement of Capital Investment Law
This service allows you to apply for grants for the purpose of investment in new manufacturing machinery or investments in the establishment, expansion or relocating of manufacturing activities to priority areas.
Online
Apply online
(Hebrew)
- A factory which qualifies as such under the definition of "Industrial Enterprise" according the clause 51 in the ECIL.
- A factory which is located in "Development Area A" (DAA) according to the second amendment to the ECIL and the areas list in the Investment Authority website.
- "Competitive Enterprise" as defined by the ECIL which meets one of the two following criteria:
- The share of the factory's revenue from international sales is at least 25% or 25% from the revenue attributed to the capital investment.
- The Factory's main activity involves Biotechnology or Nanotechnology, and is approved by the Israel Innovation Authority.
Does the service requires payment
The service requires payment.
The service fee is in accordance to the investment requested.
- The grant rate is up to 20% from the factory's approved investment program. A share of 65% of the approved grant is given in accordance with the investment input. The other 35% is given after the submission of the final performance report and a professional audit which confirms that there is compliance with the threshold conditions and the approved program objectives.
- Factories which are located in the Negev, Sderot, Gaza envelope and at local authorities or factory areas which are classified as peripheral cluster 1-4 as defined by the Israeli Bureau of Statistics is entitled to an additional 10% of the approved investment program, according to the terms stated the "procedure of grants rate determination for factories located in the Negev, Sderot, Gaza envelope and at local authorities or factory areas which is classified as peripheral cluster 1-4 for companies which their request have been approved after the 1/1/2017". the additional 10% may only be given once the investment program is completed and the program had been given a final approval certificate.
- An initial request for establishment, expansion or relocation of a factory is submitted using a digital form.
- Once the initial digital request has been processed, an e-mail will be sent to your account with the connection details of Kalkalit digital platform, through which all forms regarding the request should be submitted, including the business plan for the investment program
- Each company that submitted a request which was approved will receive an official approval certificate.
- The approval certificate contains details regarding the approved investment program and the conditions on which the grant is approved, subject to compliance with the conditions stated in the ECIL and the conditions stated in the approved investment program.
- Companies which have been given an approval certificate are obligated to full compliance with the conditions stated in the ECIL, the approval certificate and the approved program objectives. The approved program objectives include: investments, sales, employment, salary and innovation.
- Companies which have been given an approval certificate are required to be audited and need to comply with the following reporting rules:
- Submitting a capital inputs report for the approved program. In addition, once the program is approved, and according to the company's request, a professional advisor will assist the company and examine the inputs reported.
- Submission of an annual report describing the program's progress putting inputs into the program and the compliance with the conditions stated in the approval certificate and the ECIL.
- Occasionally, an audit will be performed by an economist and engineer for advisory purposes.
- With the completion of the capital inputs of the program, and no longer than 5 years from the execution of the program, the company will submit a final performance report. After the submission, an additional audit will be performed and will examine the capital inputs and compliance with the conditions stated in the approval certificate, investment program and the ECIL.
- With the final performance approval given to the program and the determination of the first execution year of the program, a periodic audit will be performed at the factory for 7 years from the stated execution year.
- Companies are able to make adjustments to the approved program in accordance with the procedures of the Investment Authority.
- The budget allocation manner of the requests, the terms for the examination and the criteria for requests prioritization is stated in the "Investments Authority board of directors rules for budget allocation at grants by the power of ECIL program".
- As part of the request audit, the company’s financial strength is reviewed, as well as all of the company's financial aspects.
- After the final approval certificate has been issued and an execution year has been determined, the company is obligated to run the program for at least 7 years from the execution year stated. After that period, if the company had complied with all of the conditions and thresholds stated in the approved investment program, the company is permitted to request the removal of its financial securities, a request that will be examined by the Investment Authority.
Apply online
(Hebrew)
Ministry of Economy and Industry
Israel Investments Authority for Industry & Economy Development
Email: [email protected]