Government Incentives and Regional Advantages in Adana and Çukurova

Türkiye's investment incentive system divides provinces into regions based on their level of economic development and applies different support rates to each region. Adana holds a notable position on this regional map for investors. Its favorable position in the regional incentive system allows companies in the city to benefit from various support tools at higher rates.

The main support tools available to companies under the regional incentive scheme are:

• Corporate tax reduction: Investments covered by an investment incentive certificate receive a tax reduction based on a set contribution rate. The higher the regional classification, the higher this reduction rate.
• SGK employer premium support: The government covers the employer's share of social security (SGK) premiums for newly hired staff for a set period. This period can be longer depending on the region where the investment is made.
• Interest support: The government may cover part of the interest expense on loans used for the investment. The amount and duration of support vary by region.
• VAT exemption and customs duty exemption: No VAT is paid on machinery and equipment purchased under an investment incentive certificate, and imported equipment is exempt from customs duty.

Adana's geographic location, transportation infrastructure and skilled workforce are also decisive factors in investment decisions. Proximity to the Port of Mersin, rail connections and airport access provide strong infrastructure for manufacturing and logistics investments. Ready-to-use infrastructure in organized industrial zones and affordable land costs are also part of the region's advantages.

Because current regional support rates vary depending on the investment subject and amount, we recommend following the Ministry of Industry and Technology's official sources before applying. Incentive legislation is updated periodically, and regional classifications may be revised from time to time.

The Çukurova Development Agency (ÇKA) is the regional development body covering the provinces of Adana and Mersin. The agency runs both financial and technical support programs to unlock the region's economic potential and boost its competitiveness. Projects aligned with the region's strategic priorities are particularly well positioned to benefit from agency support.

Financial support programs come in two main forms: direct financing (grants) and interest support. Under direct financing programs, the agency covers a set share of the eligible costs of successful projects, and project owners are expected to provide co-financing. Under interest support programs, the agency covers part of the interest expense on investments financed with bank loans.

The agency's financial support calls typically focus on the following thematic areas:

• Productivity and competitiveness in manufacturing
• Value-added production in agriculture and food
• Digitalization, technology transfer and innovation
• Renewable energy and energy efficiency projects
• Social development, employment and entrepreneurship
• Developing tourism infrastructure

Technical support programs cover short-term services designed to strengthen the institutional capacity of organizations in the region. Expert assistance is available on topics such as strategic planning, project cycle management, quality management systems, export consulting and digital transformation. Technical support programs are especially valuable for companies that want to prepare their organizational infrastructure before starting a project.

SMEs, cooperatives, non-governmental organizations, universities and public institutions can apply for development agency support. Projects designed around the region's priority sectors have the potential to score higher in evaluations. Current calls, application timelines and supported priority areas can be followed on the agency's official website.

The Çukurova Technology Development Zone (Teknokent), located on the Çukurova University campus, is the hub of Adana's technology ecosystem. Teknokent offers significant advantages to companies working in software development, information technology, engineering, biotechnology and other high-tech fields.

The main incentives available to companies in technology development zones are:

• Corporate tax exemption: Earnings from R&D, design and software activities carried out in the Teknokent are exempt from corporate tax for the period specified by law.
• Income tax exemption: The salaries of R&D and support personnel working in the Teknokent can be partially exempt from income tax. The exemption rate varies according to the employee's qualifications.
• SGK employer premium support: The government may cover part of the employer's social security (SGK) contribution for R&D personnel.
• VAT exemption: Software deliveries and services produced within the Teknokent are exempt from VAT under the conditions set by law.

Beyond the tax advantages, being based in a Teknokent offers important strategic benefits. Çukurova University's academic expertise and research infrastructure are a valuable resource for strengthening companies' R&D projects. Through university–industry collaboration, academics can join projects as consultants or researchers. This collaboration reinforces a project's technical foundation in applications to institutions such as TÜBİTAK and KOSGEB and provides an advantage in evaluation.

Interaction, knowledge sharing and potential business partnerships among Teknokent companies are another important dimension of the ecosystem's value. Shared laboratory access, seminar and workshop programs and mentoring opportunities act as an accelerator, especially for early-stage startups and SMEs.

Our team is based at Adana Teknokent, and we have first-hand experience helping companies in the region make the most of R&D incentives. As part of our incentive consulting services, we provide support with Teknokent application processes, R&D center setup and TÜBİTAK project preparation.

Adana and the Çukurova region have some of the most fertile agricultural land in Türkiye. As one of the country's leading provinces in the production of citrus, greenhouse crops, grains, cotton and soybeans, Adana offers a strong natural foundation for agro-industrial investment. This production capacity gives companies in the agriculture and food sector a strategic advantage in accessing various government support programs.

TKDK–IPARD Program: Managed by the Agriculture and Rural Development Support Institution (TKDK), the IPARD program uses EU pre-accession funds to provide grant support for investments in the agriculture and food sector. Establishing and modernizing food processing facilities, cold chain logistics infrastructure, aquaculture and the diversification of farm activities are among the main investment areas supported. Adana's agricultural production capacity makes the region a strong candidate for projects under the IPARD program.

Investment support for agro-industry: Agro-industrial investments can also benefit from regional support rates under the investment incentive certificate. Investments in food processing, packaging, storage and agricultural trade can take advantage of the favorable terms of the regional incentive scheme.

Rural development programs: Rural development support run by the Ministry of Agriculture and Forestry aims to diversify economic activity in rural areas and modernize agricultural businesses. Investments such as greenhouses, irrigation infrastructure, livestock housing and agricultural mechanization can be considered under these programs.

Incentive programs in the agriculture and food sector open in call periods, and the supported sub-sectors, support rates and application conditions are redefined for each period. Current call periods and application conditions should be followed on TKDK's official website. When preparing an application, a complete feasibility analysis, environmental compliance documents and technical project file play a decisive role in the evaluation.

For companies looking to benefit from regional incentive and support programs, the application process starts with choosing the right program and requires systematic preparation. Although different institutions follow different application procedures, the general framework can be summarized in the following steps:

• 1. Assess your eligibility: Identify which support programs your company qualifies for based on its sector, size, financial structure and investment plan. Regional incentives, development agency support, TÜBİTAK programs and TKDK grants each have different eligibility criteria. Applying to the wrong program wastes both time and resources.
• 2. Choose the right program: You may be eligible for more than one program. Each program has its own support rate, ceiling, eligible cost items and expected outputs. Identifying the program or program combination that best fits your investment is the most critical step in the process. Keep in mind that you cannot receive duplicate support for the same cost item.
• 3. Prepare the project file: The application file consists of the project proposal form, business plan, budget table, financial statements, company incorporation documents and any technical specifications. Budget items that align exactly with the program's eligible cost categories are a critical evaluation criterion.
• 4. Submit your application: Upload the project details and supporting documents through the relevant institution's online application portal. Pay attention to the application period; in call-based programs, applications received after the deadline are not considered.
• 5. Actively follow up on the process: Closely track the post-application evaluation, revision requests and contract stages. Responding to requests for missing documents or information on time is vital to keep your application in the process.

Choosing the right program and preparing a professional application directly affect your likelihood of receiving support. The process can seem complex, especially for first-time applicants, but it becomes manageable when taken step by step.

Read our comprehensive guide to all SME support programs. In it, you'll find details on KOSGEB, TÜBİTAK and development agency support, application conditions and practical tips.

Learn more about our incentive consulting services and let's identify the best support programs for your Adana-based company together. We're with you at every stage — from eligibility analysis and application file preparation to process follow-up and reporting.