Cash Incentives for Investment Projects When it comes to setting up produc- tion or service facilities, investors can count on a number of different public funding programs. These pro- grams complement the financing of an investment project. Most impor- tant are cash incentives provided in the form of non-repayable grants applicable to co-finance investment- related expenditures such as new buildings, equipment or machinery. In Eastern Germany, investment grants are complemented by an investment allowance (Investitions- zulage IZ), which is usually allotted in the form of a tax credit but which can also be provided in the form of a tax- free cash payment.