What government incentives are available in Hefei?
Last updated: July 2026 | Category: Business Incentives & Investment | Target audience: Foreign investors, business owners, and entrepreneurs considering Hefei, Anhui Province
Hefei, the capital of Anhui Province, has emerged as one of China’s fastest-growing major cities, with a GDP growth rate consistently ranking among the top in the nation. The municipal government has put together an impressive package of incentives to attract both domestic and foreign investment, particularly in high-tech manufacturing, R&D, and emerging industries.
This guide provides a comprehensive overview of the government incentives currently available in Hefei as of mid-2026, organized by category so you can quickly identify programs relevant to your business.
1. Financial Subsidies and Grants
Headquarters Establishment Subsidy
Up to RMB 20 million (approx. USD 2.75 million)
Companies that establish their regional or functional headquarters in Hefei can receive a one-time establishment subsidy. The exact amount depends on the company’s registered capital and projected annual revenue. For multinational corporations, additional incentives apply under Anhui Province’s “Bringing in Headquarters” initiative.
Eligibility: Companies with minimum registered capital of RMB 10 million (foreign-invested) or RMB 50 million (domestic). Must maintain operations in Hefei for at least 5 years.
Foreign-invested eligible Manufacturing
Fixed Asset Investment Subsidy
Up to 15% of total fixed asset investment (capped at RMB 50 million)
New industrial projects in Hefei’s designated industrial parks can receive a subsidy of 5–15% on their fixed asset investments (machinery, equipment, factory construction). The rate depends on the project’s classification: strategic emerging industries receive the highest rate, while general manufacturing receives the base rate.
Eligibility: Minimum total investment of RMB 30 million. Projects must be located in one of Hefei’s recognized industrial parks or development zones.
Manufacturing High-tech
R&D Expense Super-Deduction
200% tax deduction on qualified R&D expenses
Companies conducting research and development activities in Hefei can deduct 200% of their qualified R&D expenses from their taxable income. This is a national-level incentive that Hefei supplements with additional local support for qualifying high-tech enterprises.
Eligibility: All companies with qualified R&D activities. Enhanced rates for companies recognized as High-Tech Enterprises (高新技术企业).
R&D High-tech
Interest Subsidy on Loans
Up to 50% of interest paid (capped at RMB 3 million/year for 3 years)
Companies that take out loans for technological transformation, equipment upgrades, or new product development can receive an interest subsidy covering up to half of their loan interest payments. The subsidy is available for up to three consecutive years.
Eligibility: Loans must be used specifically for project purposes approved by the Hefei Development and Reform Commission (DRC).
Manufacturing
2. Tax Incentives
High-Tech Enterprise (HTE) Preferential Tax Rate
15% corporate income tax rate (standard rate: 25%)
Companies recognized as High-Tech Enterprises by the Ministry of Science and Technology qualify for a reduced corporate income tax rate of 15%. Hefei has streamlined the HTE certification process with a dedicated service window at the Hefei Science and Technology Bureau.
High-tech R&D
Two-Free-Three-Half for Strategic Industries
100% CIT exemption for 2 years, 50% for 3 years
Qualifying companies in strategic emerging industries (integrated circuits, new energy, biomedicine, AI) can enjoy a corporate income tax exemption for the first two profit-making years, followed by a 50% reduction for the next three years.
High-tech
Tax Refund for Reinvested Profits
Up to 100% of retained local tax
Foreign-invested enterprises that reinvest their Hefei-derived profits into expanding local operations can receive a refund of up to 100% of the local retained portion of the corporate income tax on the reinvested amount.
Foreign-invested
Land Use Tax Reduction
50–75% reduction for industrial land
Industrial enterprises in Hefei’s development zones can receive significant reductions on urban land use tax. The exact reduction depends on the industry category and the specific zone.
Manufacturing
3. Talent and HR Incentives
| Incentive | Amount | Description |
|---|---|---|
| Top Talent Introduction Bonus | RMB 2–10 million | One-time bonus for introducing academicians, national-level experts, or recognized top researchers to Hefei-based companies |
| Executive Relocation Allowance | RMB 500,000–2 million | Senior executives relocating to Hefei for key positions in strategic industries |
| Housing Subsidy for Skilled Workers | RMB 200,000–600,000 | Down payment assistance for master’s/PhD level employees in target industries |
| Rental Subsidy (Talent Apartments) | Up to 100% of rent | For the first 3 years in Hefei’s dedicated talent apartment program |
| Individual Income Tax Rebate | Up to 30% of local retained IIT | For high-level talents in strategic industries, 3-year rebate |
| Employer Social Insurance Subsidy | 50% of employer contribution | For newly hired college graduates, up to 2 years |
| Training Subsidy | RMB 1,000–5,000 per employee | For approved professional skills training programs |
4. Industry-Specific Incentives
Integrated Circuits (IC)
Hefei has positioned itself as a major IC industry hub, anchored by companies like Hefei Changxin Integrated Circuit Manufacturing Co. (CXMT) and JL Semiconductor. Incentives include:
- Design tool subsidy: Up to 50% of EDA tool costs (capped at RMB 5 million/year)
- Wafer fabrication subsidy: RMB 5,000–10,000 per wafer for new IC design projects
- IP licensing subsidy: Up to 50% of IP licensing fees (capped at RMB 3 million)
- Mask manufacturing subsidy: Up to 30% of mask costs for first-time tape-outs
New Energy Vehicles (NEV)
Hefei is home to NIO’s global headquarters and a growing NEV supply chain ecosystem. Incentives include:
- Production line subsidy: Up to 20% of new NEV production line investment
- Battery R&D subsidy: Up to RMB 20 million for battery technology R&D projects
- Charging infrastructure: Subsidies of RMB 300–1,000 per charging point installed in Hefei
- NEV purchase for fleets: Subsidies for corporate fleet electrification
Artificial Intelligence and Big Data
- AI computing power voucher: Up to RMB 5 million/year for cloud computing resources
- Data center subsidy: Up to 30% of data center infrastructure costs
- AI application scenario award: RMB 1–5 million for successful AI deployment projects in Hefei
Biomedicine and Medical Devices
- Clinical trial subsidy: Up to RMB 10 million per drug for Phase I-III clinical trials conducted in Hefei
- GMP facility subsidy: Up to 20% of GMP-compliant facility construction costs
- Innovative device approval bonus: RMB 5 million for Class III medical device approvals
Green Energy and Environmental Technology
- Solar installation subsidy: RMB 0.1–0.3 per kWh for rooftop solar installations
- Wastewater treatment subsidy: Up to 30% of industrial wastewater treatment system costs
- Carbon credit trading support: Technical and financial support for carbon asset management
5. Innovation and IP Incentives
Patent Application Subsidy
RMB 5,000–50,000 per patent
Subsidies for invention patent applications (higher for international PCT filings). Hefei also covers the first three years of patent maintenance fees for granted patents.
Innovation Platform Subsidy
Up to RMB 10 million
For companies establishing accredited R&D centers, provincial-level engineering labs, or national-level innovation platforms in Hefei.
Standard-Setting Award
RMB 1–5 million
For companies that lead the drafting of national or international industry standards.
6. Foreign-Invested Enterprise (FIE) Specific Incentives
| Incentive | Details |
|---|---|
| FIE Establishment Bonus | RMB 500,000–5 million for newly registered FIEs with minimum investment thresholds |
| Actualized Capital Bonus | 1–2% of actualized foreign capital (capped at RMB 10 million) |
| Profit Reinvestment Bonus | Additional subsidy when foreign-invested profits are reinvested in Hefei expansion |
| Foreign Expert Fast Track | Expedited work permit and residence visa processing for up to 5 foreign experts per company |
| International School Partnership | Priority enrollment and school fee subsidies for dependents of foreign executives |
| One-Stop FIE Service | Dedicated FIE service window at Hefei Government Service Center (Bundled registration, permits, and licensing) |
| Cross-Border Data Pilot | Eligibility for Anhui’s cross-border data transfer pilot program (specific zones only) |
7. How to Access These Incentives
The One-Stop Service Center
Hefei has established a comprehensive one-stop service center for investment incentives at:
Hefei Investment Promotion Bureau (合肥市投资促进局)
10th Floor, Building B, Hefei Municipal Government Complex
No. 218 Dongliu Road, Shushan District, Hefei
This office provides pre-application consultation, document checking, and streamlined submission for most incentive programs. English-language consultation is available by appointment.
Online Application Platform
Many incentives can be applied for through the Anhui Government Service Platform (ahzwfw.gov.cn) and the dedicated Hefei Industry Development Policy Platform (hfcyzc.gov.cn).
Required Documentation (General)
- Completed application form (specific to each incentive program)
- Business license (营业执照)
- Audited financial statements for the past 2–3 years
- Project proposal or feasibility study report
- Proof of fixed asset investment (for investment subsidies)
- Tax payment certificates
- Social insurance contribution records (for talent incentives)
- Qualification certificates (e.g., HTE certificate for tax incentives)
8. Practical Tips for Navigating Hefei’s Incentive System
Tip #1: Stack multiple incentives
Most incentives can be combined. A typical high-tech manufacturing project might qualify for: the fixed asset investment subsidy + HTE tax rate + R&D super-deduction + talent housing subsidies + industry-specific bonuses. Work with a consultant to create a comprehensive application strategy.
Tip #2: Engage a local consultant
Hefei’s incentive policies are updated annually (typically released in Q1). Policies are published in Chinese on the Hefei government websites, and navigating them without Chinese language skills is extremely difficult. Local business consulting firms — such as Anhui Deqitong and Hefei-based law firms — specialize in incentive applications for foreign investors.
Tip #3: Locate in a recognized industrial park
Many incentives are conditional on locating within one of Hefei’s recognized development zones: Hefei High-Tech Zone (合肥高新区), Hefei Economic Development Zone (合肥经开区), Hefei New Station High-Tech Zone (合肥新站高新区), or Hefei Comprehensive Bonded Zone (合肥综合保税区). Each zone also has its own supplementary incentive packages.
Tip #4: Track policy release cycles
Major policy updates typically coincide with Hefei’s annual “Two Sessions” (两会) in early spring. Budget allocations for incentive programs are published by May each year. Applications for the most competitive programs (especially those with capped budgets) are processed on a first-come, first-served basis, so submit early in the fiscal year.
Tip #5: Prepare for post-approval audits
Incentive recipients are subject to compliance audits for 3–5 years after receiving funds. Keep all supporting documentation — including investment receipts, payroll records, and R&D expense breakdowns — organized and accessible.
9. Key Government Contacts
| Department | Responsibility | Phone |
|---|---|---|
| Hefei Investment Promotion Bureau | FIE incentives, HQ subsidies | 0551-6353-8000 |
| Hefei Science & Technology Bureau | HTE certification, R&D grants | 0551-6353-8600 |
| Hefei Finance Bureau | Subsidy disbursement, tax policies | 0551-6353-7700 |
| Hefei Human Resources Bureau | Talent subsidies, housing | 0551-6353-6600 |
| Hefei DRC (Development & Reform Commission) | Project approval, industrial policy | 0551-6353-8400 |
| Hefei Customs (for bonded zone) | Import/export incentives | 0551-6223-1000 |
| Hefei 12345 Hotline | General inquiries (English available) | 0551-12345 |
10. Summary: Which Incentives Apply to Your Business?
| Business Type | Key Incentives to Pursue | Estimated Total Value |
|---|---|---|
| High-tech manufacturing (NEV, IC, electronics) | Asset subsidy, HTE tax rate, R&D super-deduction, interest subsidy | RMB 10–80 million |
| R&D center / Innovation lab | Innovation platform subsidy, patent subsidy, talent housing, IIT rebate | RMB 3–20 million |
| Biomedical company | Clinical trial subsidy, GMP facility subsidy, HTE rate, talent bonus | RMB 5–30 million |
| FIE headquarters | HQ subsidy, actualized capital bonus, FIE bonus, reinvestment refund, executive allowance | RMB 5–25 million |
| Green energy / environmental tech | Green subsidy, solar subsidy, carbon support, interest subsidy | RMB 2–15 million |
| SME / Startup | Training subsidy, rental subsidy, patent subsidy, loan interest subsidy | RMB 500,000–3 million |
Final Assessment
Hefei’s government incentive programs are among the most comprehensive in central China. The municipal government has made attracting quality investment a strategic priority, and the incentives reflect this commitment. For a typical mid-size foreign-invested manufacturing project, the total value of combined incentives can reach RMB 10–50 million (USD 1.4–7 million) over the first five years of operation.
The key to maximizing these incentives is preparation: understanding which programs apply to your specific industry, preparing complete documentation, submitting early in the fiscal year, and engaging experienced local consultants to navigate the Chinese-language application processes.
Hefei’s strategic focus on integrated circuits, new energy vehicles, AI, and biomedicine means that companies in these sectors receive the most favorable treatment. However, incentives exist for a wide range of industries, and even small and medium enterprises can access meaningful support through the various subsidy and training programs.
This article is part of the Anhui Gateway series on business incentives in Hefei. All figures are based on publicly announced policies as of July 2026. Actual eligibility and amounts should be verified with the relevant Hefei government departments or a licensed local consultancy. Incentive policies are typically updated annually.