Formal incentive effect. (31) The Hungarian authorities explained that the works on the Investment Project started on 28 April 2022, i.e. after the applications for aid had been submitted (on 8 April 2021 for the cash grant and on 31 March 2021 for the tax benefit).
Formal incentive effect. (120) According to paragraphs 64 and 65 of the RAG 2014 and 62 and 63 of the RAG 2022, the formal incentive effect requirement is met if works on an individual investment start only after the application for aid has been submitted. This condition is met in the present case as the beneficiary applied for aid on 8 April 2021 (cash grant) and 31 March 2021 (tax benefit), while works on the Investment Project only started on 28 April 2022 (recital (12)) (58).