New Investment Incentive System: Interest Support or Machinery Support?

New Era in Investment Incentive System: Choice Between Interest Support or Machinery Support
A major update has been introduced in the State Aid for Investments framework. In the new period, investors must choose one support type for the same investment: either interest/profit share support or machinery purchase support.

• Up to 240 million TL in interest/profit share support can be granted.
• Alternatively, investors may opt for machinery support, where 25% of the cost of eligible machinery-equipment purchases (unit price ≥ 2 million TL) will be reimbursed, subject to limits.

The system is structured under three pillars:

• Türkiye Century Development Initiative (Technology, Local Development, Strategic programs)
• Sectoral Incentives (Priority and Target Investments)
• Regional Incentives (with updated regional maps and reclassified provinces)

Other highlights include:

• Automotive investments gaining limited customs-free vehicle import rights under certain capacity conditions.
• Increased minimum investment thresholds: 12 million TL in 1st–2nd regions, 6 million TL in others.
• New rules for financial leasing investments and annual revaluation adjustments.

In summary, investors must now carefully assess both program eligibility and the critical choice of interest support vs. machinery support when planning their investments.