Through Government Decision for the establishment of a state aid scheme for advanced technologies (TechUp Romania) no. 643/2026, published in Official Gazette no. 699 of August 24, 2026, a new funding program is introduced, aimed at companies that develop and implement advanced technologies (deep tech).
What does it provide?
The state aid scheme is structured into two distinct components, designed to finance the entire lifecycle of an innovative product, from research to mass production. Eligible projects must have a total value of eligible costs between 5 and 50 million lei. Beneficiary companies must provide co-financing of at least 25% of the eligible costs, from sources not subject to other public aid.
Component I (Research-Development) supports industrial research and experimental development activities to bring a technology from an early maturity level (TRL 3) to a pre-commercial stage (TRL 8). The aid for this stage is hybrid: one part is granted as a non-reimbursable grant for personnel costs, contractual research, and overhead costs, while the other part consists of a 200% tax deduction for expenditures on equipment and intangible assets used in the project, thereby reducing the corporate income tax base.
Component II (Production/Service Provision Capacities) finances the initial investment for the creation of production or service provision facilities that use the technology developed in the first component. This aid is a regional grant, whose intensity varies between 30% and 70% of the eligible expenditures, depending on the county where the investment is made. Companies can opt for the grant calculation base to be either the costs of new tangible and intangible assets or the estimated salary costs for new jobs created, over a two-year period.
Beneficiaries have strict post-financing obligations. The investment in production capacities must be maintained in the approved location for at least 5 years from completion. Similarly, newly created and financed jobs must be maintained for a minimum period of 5 years. Also, the company must achieve, in the last 3 years of the maintenance period, an average turnover of at least 30% of the value estimated in the business plan. Non-compliance with these conditions leads to the total or partial recovery of the state aid granted.
To whom does it apply?
The scheme addresses both SMEs and large enterprises, registered in Romania, that carry out investment projects in the following strategic areas:
- Advanced computing, artificial intelligence, microelectronics, and digital infrastructure;
- Biotechnology, agritech, and precision health;
- Green energy, storage, and climate technologies;
- Mobility, space, and autonomous systems;
- Advanced materials and industrial production (Industry 4.0);
- Cybersecurity and digital security.
Companies in financial difficulty, those subject to an unexecuted state aid recovery decision, as well as those from sectors such as primary agricultural production, fisheries and aquaculture, steel production, coal, and transport are excluded.
What should you do?
- Evaluate whether your project falls within the eligible technological areas and meets the value thresholds (minimum 5 million lei eligible costs, of which at least 2 million for R&D and 3 million for production).
- Prepare the necessary documentation, especially the business plan that demonstrates the project’s viability and a report certifying the technological maturity level (TRL) of the innovation at the time of application.
- Secure the sources for your own contribution of at least 25% of the eligible costs, which must be free from any other public aid.
- Submit the application for funding approval to the Ministry of Finance before commencing any work or signing any firm contract related to the investment, to demonstrate the incentive effect of the aid.
- Analyze post-financing obligations, including maintaining the investment and jobs for 5 years and achieving turnover targets, to evaluate the long-term impact on operations.
Source: Official Gazette, Part I, no. 699 of August 24, 2026.
Note: This material is strictly for informational purposes and does not constitute legal, tax, or business advice. As the interpretation and application of legal provisions can vary significantly depending on the specific circumstances of each entity, we recommend seeking specialized legal assistance before making any operational decisions based on these changes.