ECIL Capital Investment Grants

ECIL Capital Investment Grants

Funds industrial expansion and establishment investments in priority sectors across Israel via strategic capital incentive grants.

The Encouragement of Capital Investments Law (ECIL) Capital Grant Programme is Israel's foundational industrial investment incentive, administered on a rolling basis by the Authority for Investments and Development of Industry and Economy at the Ministry of Economy and Industry. The programme provides capital grants to Israeli industrial enterprises establishing, expanding, relocating, or upgrading manufacturing facilities in national priority and development areas. The Authority evaluates requests submitted in the current or the previous fiscal year, and applications are accepted through the Kalkalit digital platform on a continuous basis.

The standard grant rate is up to 20% of the factory's approved investment programme. Factories located in peripheral cluster 1–4 areas — including the Negev, Sderot, and the Gaza envelope — are entitled to an additional 10% grant on top of the standard rate, payable only after the entire investment programme is completed. Disbursement follows a structured schedule: 65% of the approved grant is released proportionally as capital inputs are made, while the remaining 35% is held until the company submits a final performance report and a professional audit confirming compliance. To qualify, a factory must be classified as an Industrial Enterprise under ECIL clause 51 and must be located in Development Area A or qualify as a Competitive Enterprise — defined as either generating at least 25% of revenues from international sales or having its main activity in biotechnology or nanotechnology approved by the Israel Innovation Authority.

Approved companies must operate the funded programme for at least seven years from the execution year stated in the approval certificate and submit annual progress reports throughout. After completing capital inputs, a final performance report is due within five years. The service fee is proportional to the investment requested. Government-owned companies are excluded; mixed ownership companies receive benefits only for the privately-owned portion. Applications are filed online via forms.wmg.co.il/kalkalit; queries to manakimb@economy.gov.il.