Per the provisions of Government Ordinance no. 85 of June 24^th 2008, certain types of investments beneficiate from State incentives, for example: agro-industrial processing, producing of electrical and thermal energy, production of equipment for raising the energy efficiency, information and communication, research, water distribution, activities related to labor force etc.

Incentives granted by the Romanian State can be granting of non-reimbursable amounts for certain acquisitions for the company’s activity, granting of financial contribution for newly created jobs, granting of interest bonuses for contracting credits etc.

Government Decision no. 1165/26/2007 contains the conditions which the investors must fulfill in order to be eligible for the incentives:

a) They are commercial enterprises registered according to the Romanian Company Law;

b) They have a Romanian headquarter and activate in Romania

c) Are not considered companies in financial difficulty;

d) No decision to recuperate a State Aid has been issued against the company;

e) Are not newly created small enterprises (with certain exceptions);

f)  Have not received State Aid for the same initial investments.

The investment itself must fulfill certain restrictive conditions, respectively:

a) The investment must exceed 30 mil. Euros;

b) The investment must create at least 300 new jobs;

c) The project cannot start sooner than the aid is granted;

d) Must be maintained for at least 5 years (large enterprises) and 3 years (small and medium enterprises);

e) The jobs must be created in 3 years from the date the project is finished and must be maintained for at least 5 years (large enterprises) and 3 years (small and medium).

Decision no. 753/2008 also institutes certain conditions for Aid from the Romanian State for regional development targeted at foreign investment, respectively:

a) The investment must exceed 100 mil. Euros;

b) The investment must create at least 500 new jobs;

c) The project cannot start sooner than the aid is granted;

d) Must be maintained for at least 5 years;

e) The jobs must be created in 3 years from the date the project is finished and must be maintained for at least 5 years (large enterprises).

f) Applies to all sectors with certain exceptions: fishing, coal mining, steel, transportation etc.
 

Another type of State Aid is also instituted through Decision no. 718/2008 regarding regional development and reduction of emissions. This type of incentive targets companies making initial investments in any of Romania’s 8 development regions, activating in all industrial sectors and producers of electrical and thermal energy (with certain exceptions).

All types of enterprises can beneficiate from this State Aid, including micro-enterprises while companies can request the incentive individually.

The total estimated budget is 318,800,000 Euros; for the year 2010 being in amount of 63.3 mil. Euros.