Quzhou issues incentive policies to attract investment

Quzhou in East China's Zhejiang province implemented new polices to attract more investment on April 29, local media reported.

These policies include awards involving new projects, land for project use, investment, purchase and merger, senior managers with particular attention on advanced manufacturing industry.

In addition, the city also described how to award middlemen who facilitate investment, and clarified the amount in bonuses to be given for the first time.

The policies are divided into different categories below.

1. New projects. Projects (including productive service projects, such as warehouse and logistics) will receive subsidies for equipment purchases, R&D investment, logistics, decoration, and personnel training with an amount equal to no more than 100 percent of their contributions to the local economy in the first three years after starting operations and no more than 50 percent over the subsequent two years.

2. Land for project use. New projects will be given a price of no less than the minimum provincial standards for their industrial lands according to industrial category, investment scale, and output per mu; new projects that lease factories will receive subsidies equal to the amount they pay in rent over a period of three years, while those that purchase idle factories will be awarded an amount equal to 80 percent of their contributions to local economy during the transaction.

3. Investment. Purchasing subsidies of up to 200,000 yuan ($28,000) per house for 100 houses will be awarded to employees of new projects in Quzhou, with at least one billion yuan in fixed asset investment, and another 100 houses will be allocated with subsidies every time fixed asset investment increases by one billion yuan.

4. Purchases and mergers. Companies outside Quzhou which purchase or merge with a local company will be awarded an amount equal to 100 percent of the increased part of their contributions to local economy from the acquired company's economic contributions over the first three years and 50 percent of the increased part in the following two years.

5. Senior managers. Senior managers and professionals working on new projects will receive an award equal to 100 percent of their contributions to local economy for three years after the project begins operations.

Supplementary articles: new projects refer to projects with more than 25 percent of their shares being held by investors outside of Quzhou and with an independent legal personality.