The impact of the new state aid act on the Polish industrial market growth

The government’s new bill will introduce new regulations governing state aid and the operations of Special Economic Zones (SEZs). It is estimated that the proposed amendments will result in more than PLN 2.5 bln in additional investment in the first year of coming into force and result in 200,000 new jobs created over ten years. The new regulations will allow companies to apply for SEZ state aid across Poland wherever business is conducted, regardless of a project’s planned location. This will ease the lengthy procedural burden of extending SEZ borders for investors targeting non-SEZ areas. Existing SEZs will continue to operate until the end of 2026. Corporate income tax exemptions for new investments will be the key form of state aid provided regionally, which means that the former rules for granting state aid will continue to be in place and vary by region. Decisions on whether to award state aid will replace the existing system of permits allowing companies to operate