Incentive effect
Article 6
1. This Regulation shall apply only to aid which has an incentive effect. 2. Aid shall be considered to have an incentive effect, if the beneficiary undertaking has submitted a written application for the aid to the Member State concerned before work on the project or activity starts. The application for the aid shall contain at least the following information: (a) undertaking’s name and size; (b) description of the project or activity, including its start and end dates; (c) location of the project or activity; (d) list of eligible costs; and (e) type of aid (grant, loan, guarantee, repayable advance or other) and amount of public funding needed for the project or activity. 3. Ad hoc aid granted to large enterprises shall be considered to have an incentive effect if, in addition to ensuring that the condition laid down in paragraph 2 is fulfilled, the Member State has verified, before granting the ad hoc aid concerned, that documentation prepared by the beneficiary undertaking establishes that the aid will result in one or more of the following: (a) a material increase in the scope of the project or activity due to the aid; (b) a material increase in the total amount spent by the beneficiary undertaking on the project or activity due to the aid; (c) a material increase in the speed of completion of the project or activity concerned; (d) in the case of investment ad hoc aid, that the project or activity would not have been carried out as such in the area concerned or would not have been sufficiently profitable for the beneficiary undertaking in the area concerned in the absence of the aid. 4. Measures in the form of tax advantages shall be deemed to have an incentive effect, if the following conditions are fulfilled: (a) the measure establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State; and (b) the measure has been adopted and is in force before work on the aided project or activity has started. This requirement shall not apply in the case of fiscal successor schemes, provided the activity was already covered by the previous schemes in the form of tax advantages. 5. By way of derogation from paragraphs 1 and 2 of this Article, the following categories of aid are not required to have or shall be deemed to have an incentive effect (a) aid to compensate for the costs of the prevention, control and eradication of animal diseases, if the conditions laid down in Articles 42, 49, 51 and 53 are fulfilled; (b) aid to make good the damage caused by natural disasters, if the conditions laid down in Articles 42, 49, 51 and 53 are fulfilled; (c) aid to make good the damage caused by adverse climatic events which can be assimilated to a natural disaster; (d) aid to make good the damage caused by protected animals, if the conditions laid down in Articles 42, 49, 51 and 53 are fulfilled; (e) aid in the form of tax exemptions or reductions adopted by the Member States pursuant to Article 15(1) point (f), and Article 15(3) of Directive 2003/96/EC, if the conditions laid down in Article 56 of this Regulation are fulfilled; (f) aid for SMEs participating in or benefitting from CLLD projects, if the relevant conditions in Articles 54 and 55 are fulfilled; (g) aid for marketing measures referred to in Article 45(1)(b)(vii) if the relevant conditions in Articles 45 are fulfilled; (h) aid for partnership between scientists and fishers if the relevant conditions in Articles 17 are fulfilled; (i) aid to promote human capital, job creation and social dialogue if the relevant conditions in Articles 18 are fulfilled.