Tax Cashback for Production: Ukraine Proposes Investment Incentives for Industrial Development
Ukrainian manufacturers may soon benefit from tax and customs incentives designed to stimulate investment in the processing industry, as part of the government's "Made in Ukraine" economic initiative. Two draft laws — No. 13414 and No. 13415 — have been registered in the Verkhovna Rada to support both new and existing businesses through a European-style investment support model.
How It Works: Tax and Customs Benefits
The proposed laws introduce partial compensation for production investments via tax relief on:
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Corporate income tax
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Import VAT
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Customs duties on equipment
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Property tax
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Land tax
The benefits would apply to investment projects from 2026 to 2035.
What Expenses Will Be Compensated?
Businesses will receive compensation for:
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Construction of engineering infrastructure and industrial facilities
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Purchase or modernization of production equipment
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Acquisition of land plots
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Upgrading existing production capacities
Compensation Scale Based on Investment Size
| Investment Volume | Compensation Share |
|---|---|
| €100,000 – €1 million | Up to 70% |
| €1 million – €20 million | Up to 50% |
| €20 million – €50 million | Up to 30% |
Importantly, existing enterprises are eligible — making this a tool not only to attract new investors, but also to retain and expand domestic manufacturers.
Part of a Broader Support System
The initiative complements other state programs aimed at industrial revival, including:
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"5-7-9" affordable lending programs
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Non-refundable state grants of up to UAH 8 million
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Development of industrial parks
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Investment insurance against military and political risks
Strategic Objective: Reshore Production and Strengthen Industrial Base
According to MP Dmytro Kysylevsky, one of the bill's authors, the reform is intended to reverse the trend of offshoring Ukrainian industry, incentivize production modernization, and boost job creation.
If adopted, this policy will help Ukraine develop a resilient processing sector that adds value to raw materials, strengthens economic independence, and aligns with EU standards for industrial policy.
The draft laws are currently awaiting parliamentary consideration.
