AMENDMENT TO ACT ON SUPPORT OF INDUSTRIAL PARKS

(Act No. 156/2003 Coll., amending and supplementing Act No. 193/2001 Coll. on Support of Industrial Parks and on supplement of the Act No. 180/1995 Coll. on Certain Measures for Consolidation of Ownership to Plots, as amended)

The aim of the amendment to the Act No. 193/2001 Coll. on Support of Industrial Parks (the ``Act'') was to precisely specify certain provisions of the Act to uniform their interpretation, to decrease total costs for building of industrial parks and to decrease occupation of the agricultural land.

As it was showed in the practise, for building of technical equipment and engineering constructions necessary for the establishment of an industrial park (e.g. power distributions, transformer stations, telecommunication systems, etc.), it is not always necessary to purchase or lease lands on which these buildings shall be constructed. For the permission of building-up and operation of these facilities it is in majority cases sufficient to constitute particular encumbrances, whereby the costs for establishment of the industrial park and occupation of agricultural land shall be decreased.

The amendment further expressly stipulates that subsidy for technical infrastructure might be granted to a municipality only if the plots, on which the technical equipment and engineering constructions necessary for establishment of industrial park are built or will be built, are in the ownership of the municipality, or if the municipality can prove that it has another right to such plots (e.g. lease connected with the right of construction of a building).

In addition, according to the amendment, an entrepreneur, who provides a municipality with financial resources to secure its 30% share on co-financing the costs for establishment of the industrial park, shall have the right to claim this resources as tax expenses pursuant to the Act No. 366/1999 Coll. on Income Taxes as amended.

This amendment came into force on May 17, 2003.

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